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BIG STORY

Nigeria’s FX Reserves Exceed $35 billion, First Time Under President Tinubu’s Administration 

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Nigeria’s external reserves have surged to a new high of $35.05 billion as of July 8, 2024, according to Central Bank of Nigeria’s (CBN) data.

This marks the highest level since May 30, 2023, when the reserves stood at $35.09 billion, just before the introduction of the foreign exchange unification policy in June 2023.

This significant milestone is the first time the reserves have exceeded $35 billion under the current administration of President Bola Tinubu.

The growth is attributed to the Central Bank of Nigeria’s recent foreign exchange policies and financial support from institutions like Afrexim Bank and the World Bank through loans, which have collectively contributed to the boost in reserves.

When Bola Tinubu was sworn in as the 16th president of Nigeria on May 29, 2023, the country’s external reserves were about $35.09 billion.

However, when the CBN announced the FX unification policy, Nigeria’s external reserves had dropped to $34.66 billion.

From July to December 2023, the reserves fluctuated within the $33 billion range.

This year, the reserves experienced three months of noticeable fluctuations,  plunging to a low of $32.11 billion on April 19, 2024.

The central bank Governor had to address the issue of the decline at the last IMF Spring meeting, where he said that the decreasing reserves were primarily due to debt repayments and other standard financial obligations, rather than efforts to defend the naira.

However, since then, a gradual and consistent upward trajectory has been observed, coinciding with a period of exchange rate stability.

Nigeria has been experiencing a surge in exchange rate in the last few weeks ending the month of June above $34 billion for the first time since April. The reserves have continued to swell in July hitting multiple highs that have now culminated in the highest reserve in the last one year.

Since the lowest level of $32.11 billion under Tinubu in April, the external reserves have surged by $2.94 billion in less than three months.

The Monetary Policy Committee (MPC) recently urged the CBN to focus on boosting the external reserves.

To ensure a steady flow of foreign exchange into the country, the CBN plans to double the diaspora remittance inflow this year.

Also, Afrexim Bank earlier announced the disbursement of $925 million- another tranche of the $3.3 billion crude oil-backed loan agreement it entered into with the NNPC last year. The bank disclosed this in a statement on its website stating that the current disbursement brings the total payment for the facility to $3.175 billion. This loan is expected to help stabilize the forex market in light of the severe volatility.

The World Bank also recently approved $2.25 billion in loans to Nigeria to boost the country’s economic stability and support its vulnerable populations. This financial infusion is intended to provide immediate financial and technical support for Nigeria’s urgent economic stabilization efforts.

Amid the increase in reserves and financial commitments to Nigeria, Fitch noted that the lack of clarity over the precise size and composition of Nigeria’s FX reserves remains a significant constraint on the nation’s sovereign credit profile.

BIG STORY

Aso Rock Not A Party Office — Holding NEC Meeting There An Aberration — ADC To APC

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The African Democratic Congress has criticised the All Progressives Congress for conducting its national executive committee meeting at the State House in Abuja.

In a Friday statement, Bolaji Abdullahi, interim national publicity secretary of ADC, noted that the State House is neither a party office nor a private residence.

President Bola Tinubu presided over the APC NEC meeting on Thursday at the Banquet Hall of the State House. During the session, the party named Nentawe Yilwatda, the minister of humanitarian affairs and poverty reduction, as its new national chairman.

Yilwatda replaced Abdullahi Ganduje, who stepped down from the position in June.

Abdullahi responded to the appointment by stating that the ADC hopes the “appointment” of Yilwatda “might trigger a shift in tone, temperament, and trajectory for a party that has too often equated governance with propaganda, and power with impunity”.

He also expressed the hope that the APC would demonstrate “greater tolerance” for opposing voices under Yilwatda’s leadership.

He added, “We hope Professor Yilwatda will channel his high education and experience towards improving the democratic credentials of his party and its government, which, so far, has been marked by intolerance and what has often appeared like a deliberate plan to eliminate all opposition parties and foist a one-party rule on the country.”

He said it was concerning that the National Executive Committee meeting “was held within the confines of the State House — a public institution, funded by the Nigerian people, not a party office or private residence.”

He described the APC’s decision to host a party meeting at the seat of government as “an aberration that underlines how far this government has strayed from the foundational norms of democratic accountability.”

He called on the new chairman to ensure the party “respects the line — now dangerously blurred — between party and state.”

Abdullahi also highlighted Yilwatda’s former role as a Resident Electoral Commissioner, saying, “This is no small credential. It comes with a deep understanding of electoral ethics, neutrality, and public trust.”

He continued, “We sincerely hope he will draw on this experience to promote the sanctity of our electoral processes, rather than using insider knowledge to game the system in favour of his party, as has often been the case under the APC’s watch.”

He concluded, “In closing, we pray for Professor Yilwatda that may his tenure be longer than those of his predecessors and his exit more honourable.”

This is not the first time an APC NEC meeting has been hosted at Aso Rock. The ruling party previously held a similar meeting at the presidential villa in 2020.

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BIG STORY

Over 4,000 Inmates Freed In Push For Justice Reform — Interior Minister Tunji-Ojo

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The federal government has announced the release of over 4,000 inmates from correctional facilities nationwide as part of its justice system reform efforts.

Olubunmi Tunji-Ojo, the minister of interior, made this known on Thursday during a meeting with Chinedu Ogah, chairman of the house of representatives committee on reformatory institutions, in Abuja.

He stated that the inmate population has decreased from over 86,000 to around 81,450 following a review process focused on cases involving minor infractions.

“The correctional service remains a key priority. We must uphold the dignity of even the most vulnerable citizens,” he said.

Tunji-Ojo praised the national assembly for backing the ministry’s reform initiatives and highlighted the importance of collaboration between the executive and legislative branches in achieving lasting changes.

Ogah remarked that the minister’s actions are in line with President Bola Tinubu’s broader goals for justice reform and national progress.

This federal initiative coincides with similar actions at the state level aimed at easing overcrowding in correctional centres.

In May, Halima Mohammed, chief judge of Gombe, authorised the release of 85 inmates from the custodial facilities in Gombe and Billiri.

That decision came after inspections by the state’s criminal justice and inquiry committee across four correctional centres.

The chief judge explained that the visits were intended to identify inmates qualified for bail or outright release.

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BIG STORY

PDP Will Finish Fourth In 2027 Elections — Many Leaders Have Been Eased Out — Fayose

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Ayodele Fayose, former governor of Ekiti, has said that the Peoples Democratic Party (PDP) has lost its structure and may likely end up in fourth place in the 2027 general election.

During an interview on Channels Television’s Politics Today on Friday, Fayose explained that the opposition party has been weakened by internal strife and the exclusion of its key figures.

“You know the situation of our party today, and it is in my prayer that the PDP does not come fourth in the coming elections,” he said.

“When I came here, I said the party was already going into carcass.

“Pretenders can pretend, but you know that managing the party has become an issue; everybody in that party today is doing to your tent, o Israel.

“Today, I am telling you the PDP will come fourth in the general elections. In most states, they are already compromised.

“They have eased out so many leaders. It’s good for them, but let me remind you, I was part of the G5.”

Fayose added that the PDP has lost much of its strength, pointing to the departure of influential members.

“In the same PDP, the presidential candidate has left, the vice-presidential candidate has left, senators have left, and governors have left,” he said.

He noted that although he was invited to the party’s last national executive committee (NEC) meeting, he stayed away because he felt sidelined.

Fayose also suggested that President Bola Tinubu offers the quickest route for the north to regain power after his tenure.

He referred to a past conversation with the president where Tinubu described the All Progressives Congress (APC) as the “shortest political link between the north and the south”.

“I recall he told me that the shortest distance between the north and the south is APC,” Fayose said.

“I could not understand at the time because he told me that after Buhari’s four years, anybody should be able to wait for another four years.

“So, zoning to the south by the PDP is good for them because today Tinubu is the shortest distance for power to return to the north.”

Fayose clarified that he has not left the PDP but remains open to working with any political party.

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