Central Bank of Nigeria (CBN) data released on Monday show that the country’s external reserves fell by $427.14 million in a single month. Reserves stood at $37.21 billion on 18 January but had dropped to $36.79 billion by 16 February 2023.
Last year, CBN Governor Godwin Emefiele announced a redesign of naira notes, stating that one aim of the policy was to “mop up” currency held outside bank vaults. He urged Nigerians to adopt alternative payment channels to boost digital payments. However, after the new notes failed to materialise by the deadline, President Muhammadu Buhari (retired) ordered the old N200 note to be re‑circulated, declaring it legal tender until 10 April 2023. Deposit Money Banks also began collecting old N500 and N1,000 notes on Friday, without providing replacement notes to depositors.
The shortage of cash sparked protests across the country, resulting in loss of lives and property. In a statement, the Nigeria Employers’ Consultative Association warned that the cash squeeze had severely impaired Nigerians’ purchasing power. It reported a roughly 40 percent decline in productive activity in the real sector and noted that thousands of productive hours are lost daily as employees spend time queuing, with many unable to reach work at all.
In 2022, Governor Emefiele launched the “RT200 FX Programme” to increase foreign‑exchange supply from the non‑oil sector over the next three to five years. He explained that the programme comprises policies and plans aimed at achieving a target of $200 billion in FX repatriation exclusively from non‑oil exports.
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