• About
  • Advertise
  • Contact
Sunday, August 3, 2025
  • Login
Vital News
  • Frontpage
  • Business
  • Economy
  • Politics
  • National
  • Opinion
  • Sports
  • More
    • Crime
    • Judiciary
    • Security
No Result
View All Result
  • Frontpage
  • Business
  • Economy
  • Politics
  • National
  • Opinion
  • Sports
  • More
    • Crime
    • Judiciary
    • Security
No Result
View All Result
Vital News
No Result
View All Result
Home Economy

Nigeria’s external reserve falls below $40 billion

Lowest in three months

Vital News by Vital News
February 6, 2022
in Economy
0
Share on FacebookShare on Twitter

Abuja – Nigeria’s external reserve has fallen below the $40 billion threshold it had maintained in over three months. This is according to data from the Central Bank of Nigeria (CBN).

The reserve had endured a continuous decline in recent months owing to the intervention of the apex bank in the official FX market and sustained forex crunch in the economy. Notably, the reserve level has fallen to $39.98 billion as of Thursday, 3rd February 2022.

It will be recalled that Nigeria’s foreign reserve dipped by $481.4 million in the month of January 2022, following a $66.17 million decline recorded in December 2021. The last time Nigeria’s reserve had stayed below $40 billion was in October 2021, before the addition of the $4 billion Eurobond.

What happened in 2021

The federal government of Nigeria secured a $4 billion Eurobond from the international debt market in a deal dubbed one of the biggest financial trades to come out of Africa in 2021.

RelatedStories

Dangote Says Tinubu’s Economic Policies Working, Reviving Private Sector

FAAC Shares N1.818trillion June Revenue Among FG, States, LGs

Dangote Urges Wealthy Nigerians To Invest More In Nigeria To Aid Growth, Development

Africans In Position To Develop Africa, Dangote Tells Global CEOs

The issuance, which was warmly received by investors, resulting in an order book as high as $12.2 billion, giving the federal government room to raise an additional $1 billion more than the initially announced $3 billion.

The fund was used to boost the country’s reserve, hereby serving as firepower for the CBN to defend the naira. Similarly, Nigeria secured a $3.35 billion allocation from International Monetary Fund (IMF) as part of Special Drawing Rights (SDRs).

The influx of FX from these channels was able to boost Nigeria’s reserve above $41 billion in October 2021, but has since been on a downward trajectory, as demand for FX continues to outweigh supply.

Why the decline

The decline in the nation’s external reserve can be attributed to the continuous intervention of the apex bank in the Investors and Exporters window as a means to control the volatility in the FX market.

Notably, according to data from the CBN, the bank supplied a sum of $8.97 billion in the FX market through the I&E, SME, and invisible.

Also, CBN supplied $1.42 billion through interbank, while $2.77 billion was channelled through BDC operators between January and June 2021, before the bank discontinued the sales of FX to the operators.

Also, Nigeria’s international trade balance continues to maintain a deficit, as a result of the surge in import bills compared to export value, printing a trade deficit of N3.02 trillion in Q3 2021.

In addition, despite the rally at the crude oil market, already trading above $90 per barrel, Nigeria has been unable to ramp up its export earnings due to inability to improve its production quota.

It is also worth adding, that capital importation has also not been impressive in recent times, with inflows yet to return to pre-pandemic levels, hereby causing more FX crunch in the economy. (Nairametrics/vitalnews)

Tags: CBNfallsForeignreserve
Previous Post

Egbin power plant resumes operations

Next Post

2023 : Nigeria needs a younger President – Abdulsalami Abubakar

Vital News

Vital News

RelatedStories

Dangote Says Tinubu’s Economic Policies Working, Reviving Private Sector
Business

Dangote Says Tinubu’s Economic Policies Working, Reviving Private Sector

July 27, 2025
FAAC Disburses N1.678trn February Revenue To FG, States, LGs
Economy

FAAC Shares N1.818trillion June Revenue Among FG, States, LGs

July 19, 2025
Dangote Urges Wealthy Nigerians To Invest More In Nigeria To Aid Growth, Development
Economy

Dangote Urges Wealthy Nigerians To Invest More In Nigeria To Aid Growth, Development

July 16, 2025
Africans In Position To Develop Africa, Dangote Tells Global CEOs
Business

Africans In Position To Develop Africa, Dangote Tells Global CEOs

July 14, 2025
Coordinator, Zero Hunger Nigeria, Arosanyin, Urges States, LGs To Invest More In Agriculture To Prevent Food Shortages
Agriculture/ Water/ Mineral

Coordinator, Zero Hunger Nigeria, Arosanyin, Urges States, LGs To Invest More In Agriculture To Prevent Food Shortages

July 14, 2025
Next Post

2023 : Nigeria needs a younger President - Abdulsalami Abubakar

Female genital mutilation on rise among girls in Nigeria, says UNICEF

Three die in Onitsha market building collapse

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Follow Us

Recommended

Kogi Guber Poll : Abejide’s Victory, A “Tsunami ” Waiting To Happen, Says ADC Campaign D-G

Kogi Guber Poll : Abejide’s Victory, A “Tsunami ” Waiting To Happen, Says ADC Campaign D-G

2 years ago
Zamfara Shuts Cattle Markets In 5 LGAs Over Insecurity

Zamfara Shuts Cattle Markets In 5 LGAs Over Insecurity

2 years ago
Biggest Cocaine Seizure :  Court Sentences 4 Drug Kingpins To 28yrs Imprisonment, forfeit VGC houses, N67mln, $50,000

Biggest Cocaine Seizure : Court Sentences 4 Drug Kingpins To 28yrs Imprisonment, forfeit VGC houses, N67mln, $50,000

7 months ago
Tinubu Congratulates Akpabio, Abbas , Says It is time for Business of Governance

Tinubu Welcomes Supreme Court Judgment, Says It Is Time To Build A Great Nigeria

2 years ago

Instagram

    Please install/update and activate JNews Instagram plugin.

Categories

  • Agriculture/ Water/ Mineral
  • Aviation
  • Business
  • Crime
  • Culture
  • Economy
  • Education
  • Entertainment
  • Environment
  • Football
  • Foreign
  • Gender
  • Health
  • Judiciary
  • Labour
  • National
  • News
  • Oil & Gas
  • Opinion
  • Opinion
  • Politics
  • Power
  • Religion
  • Security
  • Sports
  • Transport
  • Uncategorized

Topics

Abiodun Abuja APC arrest Atiku Bandits Bello Benue Buhari CBN cement Court Dangote death dies drugs Economy EFCC Election elections FG gunmen Hajj INEC Kano kidnap Kill Kogi Kwara Lagos NDLEA Niger Nigeria Ododo Ogun Oyo PDP Police Power refinery rescue road Security students Tinubu
No Result
View All Result

Highlights

FG Awards Contracts Worth N68.7bln For Power Projects In Universities, Teaching Hospitals

Ododo Applauds President Tinubu, Minister Of Works Over Ongoing Reconstruction, Expansion Of Abuja–Lokoja Highway

Hafsoh Killer, Abdulrhaman Bello To Die By Hanging, Court Discharges, Acquits 4 Others

FG Seeks Partnership With Dangote Cement To Bridge Housing Gap

Canada Announces Plan To Recognise Palestinian State By September

Governor Alia Dissolves Benue Executive Council, Appoints New Chief of Staff

Trending

Hardship : PDP Governors Meet In Asaba, Call On FG To Rejig Economic Policies
Politics

PDP Fixes September 27 For Conduct Of Fresh Congresses In Oyo, Kogi, Lagos, Borno, Adamawa, 8 Other States

by Vital News
August 2, 2025
0

The Peoples Democratic Party (PDP) has fixed Saturday, September 27, 2025 for the conduct of congresses that...

Abiodun Commissions Renovated Olumo Rock Tourism Complex, Declares Free Entry For Two Months

Abiodun Commissions Renovated Olumo Rock Tourism Complex, Declares Free Entry For Two Months

August 2, 2025
NUC Team Pays Revalidation Visit To FUOYE, Lauds Visible Transformation Of Distance Learning Institute

NUC Team Pays Revalidation Visit To FUOYE, Lauds Visible Transformation Of Distance Learning Institute

August 1, 2025
Work Ongoing To Re-Erect Three Towers Along Kainji-Birnin Kebbi Transmission Line – TCN

FG Awards Contracts Worth N68.7bln For Power Projects In Universities, Teaching Hospitals

July 31, 2025
Ododo Applauds President  Tinubu, Minister Of Works Over Ongoing Reconstruction, Expansion Of Abuja–Lokoja Highway

Ododo Applauds President Tinubu, Minister Of Works Over Ongoing Reconstruction, Expansion Of Abuja–Lokoja Highway

July 31, 2025
ADVERTISEMENT
Vital News

Vital News is an online newspaper with a mission to uphold professional journalism by reporting and publishing only facts and figures-based news reports across Nigeria and beyond.

Recent News

  • PDP Fixes September 27 For Conduct Of Fresh Congresses In Oyo, Kogi, Lagos, Borno, Adamawa, 8 Other States August 2, 2025
  • Abiodun Commissions Renovated Olumo Rock Tourism Complex, Declares Free Entry For Two Months August 2, 2025
  • NUC Team Pays Revalidation Visit To FUOYE, Lauds Visible Transformation Of Distance Learning Institute August 1, 2025

Categories

  • Agriculture/ Water/ Mineral
  • Aviation
  • Business
  • Crime
  • Culture
  • Economy
  • Education
  • Entertainment
  • Environment
  • Football
  • Foreign
  • Gender
  • Health
  • Judiciary
  • Labour
  • National
  • News
  • Oil & Gas
  • Opinion
  • Opinion
  • Politics
  • Power
  • Religion
  • Security
  • Sports
  • Transport
  • Uncategorized

© 2022 Vital News - . All Rights Reserved.

No Result
View All Result
  • Frontpage
  • Business
  • Economy
  • Politics
  • National
  • Opinion
  • Sports
  • More
    • Crime
    • Judiciary
    • Security

© 2022 Vital News - Vital News by Vital News.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In