Recent data from the Central Bank of Nigeria (CBN) has shown that Nigeria’s external reserves increased by $4.18 billion to $30.3 billion at June 29, 2017 from the $26.097 billion at the beginning of the year, a 14.8% improvement from the $26.34 billion recorded in June 2016.

Nigeria, Africa’s second most populous country, is currently in its second year of recession driven by low prices of oil from which it gets two-thirds of its revenues coupled with attacks on oil facilities by militants in Niger Delta. This has also led to a currency crisis and dollar shortages. CBN has since February this year, rely on the country’s reserves to intervene in the foreign exchange market, injecting close to $6 billion in the market to ease pressure on the local currency. It also sold foreign exchange to small businesses and bureau de change operators, as well as for personal and business travel allowance.

The Apex Bank’s Director of Banking Supervision, Ahmed Abdulahi, had reassured that the country’s reserves were sufficient to sustain its interventions notwithstanding the recent drop in oil price.

Anita Fatunji