Nigeria Grows Foreign Reserves to $36.86bn
Nigeria’s gross external reserves balance climbed to $36.86 billion amidst expectation of further inflows from various sources, including revenue generated by the Nigerian National Petroleum Company Limited.
In August, the apex bank recorded $63 million FX inflows, which boosted external reserves balance from $36.797 billion at the end of July, 2024.
The balance in the nation’s external reserves started day on day uptrend since the government transferred NNPCL revenue collection to the Central Bank of Nigeria (CBN).
FX inflows pattern showed daily accretion, with a few days gap between receipts, according to data from the CBN. At the current level, total balance in external reserves can comfortably cover 12-13 months imports based on latest trade data, analysts said.
Market anticipates that remittance inflows would continue to lift the balance in the external reserves, though there is an indication that the amount has been pledged against various contracts: FX swaps, and oil backed-loan deals by NNPCL.
The Nigerian government had announced a plan to sell US dollar bonds to raise hard currency, at the same time the authority was pursuing loans from a multilateral lender – the International Monetary Fund (IMF).
Upon approval of $2.2 billion disbursement, the decision to raise US dollar bonds from investors were jettisoned. The IMF loans and Afreximbank oil-backed loans were among inflows that lifted the balance. NNPC Achievements: Don’t Sack Mele Kyari, CSOs Urge Tinubu
