Nigeria’s foreign reserves is sinking by the day and we hold our heads in our hands looking in despair.

After taking many heavy punches below the belt, the nation’s foreign reserve is sinking like the Titanic.

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This is happening amid several frantic efforts of the federal government to put the nation on the path of prosperity.

Foreign Reserves Crash To $32.29bn
An image of foreign currencies stored by Central Bank in a vault known as foreign reserves

To save the naira Nigeria’s foreign reserve shrank to $32.29 billion, for the first time since 2017.

Have You Read: Nigeria’s Foreign Reserve Falls By $1.46bn

This is the lowest level of reserves since September 25, 2017, when it was $32.28 billion.

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The foreign reserves declined by 6.2% losing $2.6 billion since March 18, when the naira started to rebound against the dollar.

Based on the latest available data, as of Monday, April 15, 2024, the foreign reserves dropped to $32.29 billion.

At the beginning of the month, Nigeria had $33.57 billion, then it dipped to $32.6 billion by April 12.

This is because the CBN increased its intervention in the FX market with sales to both the official market and BDC operators.

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The CBN tried to save the naira by raising interest rates to 24.75% and managing foreign exchange trades.

Nigeria Must Stop Depending On Oil Revenue

Analysing the situation, a professor of economics and public policy, Akpan Ekpo said what the CBN is trying to do is not sustainable.

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Ekpo said: “The CBN needs to be careful with how it depletes the foreign reserves as its main source is oil revenue”.

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According to him, the float system in which, CBN is trying to ensure supply and curtail demand is not sustainable.

“We need to manufacture non-oil goods and services, export them, and get foreign exchange and not depend on oil income,” he said.

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