External reverses shed $1.46b from $36.99b in January
By Jeph Ajobaju, Chief Copy Editor
External reserves dropped $1.46 billion between January and March, according to data compiled by the Central Bank of Nigeria (CBN).
The amount stood at $36.99 billion on January 1, $36.67 billion on February 27, and $35.53 billion on March 30.
At the last Monetary Policy Committee (MPC) in Abuja in March, CBN Governor Godwin Emefiele attributed the decline in foreign reserves to the fall in crude oil price.
“The committee, however, noted the marginal decline in the level of gross external reserves to $36.13billion in February 2023, from $36.4billion in January 2023, a decrease of 0.7 per cent, reflecting the downtrend in crude oil prices, as global uncertainties persist,” he said, as reported by The PUNCH.
CBN figures show external reserves declined by $3.43 billion in 2022 – from $40.52 billion in December 2021 to $37.09 billion in December 2022.
The CBN launched earlier in 2022 an ‘RT200 FX Programme’ to boost foreign exchange (forex or FX) supply through the non-oil sector in the next three to five years.
Emefiele explained at the time the project is a set of policies, plans and programmes for non-oil exports that would enable Nigeria to attain $200 billion in FX repatriation, exclusively from non-oil exports, over the next three to five years.
He said the five key anchors are value-adding exports facility, non-oil commodities expansion facility, non-oil FX rebate scheme, dedicated non-oil export terminal, and biannual non-oil export summit.
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Foreign reserves bleed $3.43b in 12 months
External reserves dipped from $40.52 billion on 31 December 2021 to $37.09 billion on 29 December 2022, gleaned from CBN figures which show a drop of $3.43 billion in the 12 months.
“The committee observed the decline in the external reserves position, as gross external reserves decreased by 1.34 per cent at end-October 2022 to $36.87billion, from $37.39billion at end-September 2022,” Emefiele said at the MPC meeting in November 2022
“With indications of lower crude oil prices in the futures market, members urged the Bank to sustain its current policies to boost non-oil exports in order to shore up the external reserves.”
Robert Asogwa, a member of the MPC, added that “the recent drop in external reserves is, however, linked to the decline in oil exports even at a time of higher oil prices.
“Interestingly, the publicised reduction in oil thefts across the Niger delta and the rising prospects of increased overseas remittances would likely boost the gross external reserves to a large extent in early 2023.”