Nigeria’s External Reserves Surpass $35 Billion Mark
The Central Bank of Nigeria (CBN) has announced a significant increase in the country’s external reserves, reaching a record-high of $35.77 billion as of Thursday. This marks a $2.68 billion jump from the $33.09 billion recorded at the end of 2023.
According to CBN data, Nigeria’s foreign reserve surpassed the $35.05 billion mark on July 8, indicating a steady growth over the past six months. The reserve’s steady increase is attributed to a combination of factors, including improved crude oil earnings and recent reforms in the foreign exchange market and energy sector.
Despite this positive news, the CBN’s economic outlook has also projected a decline in the country’s external reserves in 2024. The decline is expected due to continued payments of outstanding foreign exchange forward obligations, matured foreign exchange swaps, and debt service. However, the apex bank has indicated that the expected improvement in crude oil earnings could cushion the drop in external reserves.
The CBN’s outlook has also projected a marginal increase in diaspora remittances, rising to $19.42 billion from $19.17 billion in 2023. The outlook emphasizes that Nigeria’s external reserves, which stood at $33.09 billion in 2023, are expected to reduce slightly in 2024 based on the assumption of continued payments of outstanding foreign exchange forward obligations, matured foreign exchange swaps, and debt service.
As Nigeria’s economy continues to recover, the steady growth of its external reserves is a positive sign, indicating a stabilizing trend in the country’s finances.
