Nigeria's foreign reserves grow during April as rising oil prices boost government revenue

NIGERIA'S foreign reserves grew by $243.83m during the first 19 days of this month to $39.78bn as of at April 19 due to the rise in global crude oil prices that have ensured more revenue into the treasury.

According to recent data from the Central Bank of Nigeria (CBN), the country's external reserves rose from $39.54bn as of April 1 to $39.78bn as of April 19. This is in stark contrast to developments last month when Nigeria's external reserves fell by $313m after starting the month at $39.86bn, before falling to $39.55bn on March 30.

Speaking at the last monetary policy committee meeting, CBN governor Godwin Emefiele, said that the moderate accretion to reserves reflects the duality of Nigeria’s position as an oil exporter and importer of refined petroleum products. Committee member Professor Mike Obadan, added that for a long time, the oil sector had contributed over 90% of the nation’s foreign exchange earnings and external reserves accretion.

Professor Obadan said it was inconceivable that all the foreign exchange earned from the export of crude oil and gas was used to import refined petroleum products. He added:  “I will therefore strongly appeal to the government to appreciate the grave implications of the oil sector and NNPC’s underperformance and effectively deal with the oil thefts and non-remittance of foreign exchange/naira revenue.

“If, in the presence of the array of security forces in the oil-producing areas, monumental oil theft is taking place to the detriment of the economy, then drastic measures are called for. Government should check the untoward developments, through effective security and monitoring, and the positive impact on government finances, external reserves and exchange rate stability will be visible in a short period."