According to numbers released by the Central Bank of Nigeria, external reserves have dropped below $40 billion for the first time in over three months.
On February 2, 2022, the reserves fell to $39.82 billion from $40.53 billion on December 30, 2021.
On the back of Eurobond inflows and the International Monetary Fund’s Special Drawing Right, the country’s foreign reserves surged from $39.82 billion on October 15, 2021, to a high of $41.83 billion on October 29.
According to CBN data, the country’s external reserves increased by $5.12 billion last year, from $35.37 billion at the end of 2020.
At the first Monetary Policy Committee meeting this year, the Governor, Central Bank of Nigeria, Godwin Emefiele, said, “Members also noted the continued improvement in the external reserves despite ongoing foreign exchange market pressures. The reserves stood at $40.2bn as of December 2021.”
Emefiele had earlier noted that the external reserves rose to over $41bn in October 2021, supported by demand management measures, Eurobond inflow of $4bn, and the IMF’s SDR.
A former President, Association of National Accountants of Nigeria, Dr. Sam Nzekwe, said a lot of money came from the diaspora by November and December.
He said insecurity had affected investments in the country and productivity was low.
According to him, the productivity level must rise in the country before it can have a significant impact on the external reserves.
