Foreign Reserves Dip To $35bn; The Role Of 2023 Election, Census

Nigeria’s external reserves has slipped to $ 35.42 billion according to the figures obtained from the Central Bank of Nigeria, CBN. Exactly one year ago, the reserves stood at over $39 billion.

The implication is that the reserves have been drawn down by over $ 4 billion in 12 months, according to financial analysts who frowned at the continued depletion of the Reserves.

Godwin Emefiele, the Governor of CBN recently blamed the dwindling reserves on the fall of crude oil prices, as well as, the failure of the country sell more crude to earn hard currency.

These assertions have been dismissed by not a few analysts who claimed that the country’s crude oil sale has bounced back, aside the fact that crude oil prices have also improved at the International market.
According to the figures provide by the apex bank the reserves fell by $112.78 million in two weeks to $35.42 billion.

The figures obtained from thr CBN on Mknday also revealed that the reserves which stood at $36.99 billion as of the end of January 1, 2023, fell to $36.67 billion as of February 27, 2023, and $35.53 billion as of the end of March 30, 2023.

Faced by repeated criticism from not a few Nigerians, Emefiele had last November rued the continous slide in the external reserves, saying foreign currency earnings from crude, Nigeria’s major dollar earner fell from $3 billion monthly to zero dollars.

He said the problem started in 2014.

The CBN governor said “The official foreign exchange receipt from crude oil sales into our official reserves has dried up steadily from above $3.0 billion monthly in 2014 to an absolute zero dollars today.

“The bulk of the money in Nigeria’s foreign reserves comes from the export of gas and oil to other nations. But increasing instances of crude oil theft have hurt Nigeria’s ability to export enough crude oil. Consequently, its foreign exchange reserves are falling,” he added.

“Nigeria’s external reserves fell to $37.17 billion as of November 15, 2022, data from the CBN confirms. This is the lowest level of the external reserves this year and the lowest level since September 30, 2021, when the country faced a barrage of currency depreciation.”

Meanwhile, not a few analysts insist that the federal government spendings on the just concluded general election, and the upcoming National Census slated for next month have immense effects on the foreign reserves, due to the fact that most of the equipment used for these two events may have been sourced abroad using hard currency from the Reserve.