Nigeria’s External Reserves Rise To $26.4bn_1

After a long streak of depreciation, Nigeria’s external reserves last week increased slightly with the 30-day moving average rising to $26.4 billion as at Wednesday June 8, 2016, according to latest data provided by the Central Bank of Nigeria (CBN).

Although global oil price has been on the rise, accretion to the reserves was lower than expected as violence in the Niger Delta region reduced the country’s oil output which dropped to its lowest levels since April 2015, according to data from the Nigerian National Petroleum Corporation.

With crude oil selling at above $51 per barrel at the international market, Nigeria’s output stood at 57.43 million barrels for March, or just over 1.8 million barrels a day, a decline of more than 3 per cent from the over 2 million barrels a day recorded in the previous month. Angola has now overtaken Nigeria as the continent’s largest crude exporter.

The external reserves had consistently been depleted in the past months, shedding a total of $2.67 billion or 9.18 per cent since the beginning of the year. As at January 4, 2016, the reserves was $28.957 billion but had consistently trended downwards to $26.372 billion as at June 2, 2016, before rising to $26.4 billion.

Meanwhile the Debt Manangement Office will week raise N105 billion from the debt market through re-openings of federal government bonds. The debt office said that it will raise N15 billion through the 15.54 per cent FGN FEB 2020, N40 billion through the 12.50 per cent FGN JAN 2026 and N50 billion through the 12.40 per cent FGN MAR 2036.