Nigeria’s External Reserves Dwindle By $180m In Two Weeks

File Photo: Nigeria’s External Reserves drop

The Nigeria’s external reserves lost $180m in two weeks, revealed by the latest figures obtained from the central Bank of Nigeria, on Sunday.

The reserves, according to the figures, stood at $33.28 billion on July 1, dropped to 33.09 billion on July 12 and faintly rise to $33.1 billion as of July 15.

In June, the reserves lost $905.5 million and later fell to $33.32 billion at the end of the same month, from $34.23 billion on May 31.

According to the Central Bank of Nigeria (CBN), the reserves stood at $34.88 billion at the end of April 30.

The loss is traced to crude oil demand which was forecast to decline, led by the evolution of electric, hydrogen and biofuel-powered means of transport.

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A member of the Monetary Policy Committee, Adeola Adenikinju, said at the last meeting that as a country, the excessive dependence on oil for revenue and foreign exchange sustenance was no longer tenable in the medium and long term.

“We need to diversify the economic and revenue base of the economy to reduce our exposure to external shocks as well as prepare the economy for the global shift from fossil fuel to green economy.

“It should not be business as usual for our economic managers. The economy also needs a strong buffer to mitigate external volatility.”

Another prominent member of the MPC, Ahmed Aliyu, said beyond the decline in oil prices was the growing paradigm shift from oil to a green economy which posed a threat to future oil demand.

The CBN report at the end of the MPC meeting showed that the share of fossil fuels was set to decline from the current 85 per cent of total primary energy demand in 2018 to between 20 and 65 per cent by 2050.