Connect with us

News

Nigeria’s external reserves drop by $2bn in early 2021 – Report

Published

on

Nigeria’s external reserves lost $2 billion in the first half of 2021, H1’21, declining 0.5 percent to $33.37 billion from $35.37 billion recorded on December 31st 2020.

According to Vanguard newspaper, though some accretion to the reserves were recorded intermittently during the period, the last 1 weeks have recorded a steady slide losing a total of $1.9 billion, hitting the $33.37 billion, the lowest level in 14 months.

The reserves recorded its sharpest rise in January receiving a huge inflow of $929 million or 2.6 per cent increase, month-on-month, m/m, to $36.3 billion from $35.37 billion in December, courtesy of rising crude oil prices, a report by Vanguard said.

Advertisement

The reserves however fell in February by $1.2 billion or 3.3 per cent, m/m, to $35.09 billion following increased dollar sales by the Central Bank of Nigeria, CBN. This trend persisted in March as the reserves fell again by $279 million or 0.7 per cent to $34.82 billion.

The marginal decline in March followed a two week upward trend in reserves, which commenced on March 18th from $34.42 billion to $34.82 billion at end of the month, resulting in $37 million accretion in the reserves.

However, the reserves recorded a marginal increase of 0.2 per cent, MoM, in April, but resumed its downward trend in May, falling by 1.7 per cent MoM decline to $34.27 billion.

Advertisement

The trend worsened in June as the reserves fell again by 2.5 per cent MoM to $33.37 billion on June 29th.

The persistent decline in the external reserves is in spite of steady increase in the price of crude oil, which accounts for about 70 per cent of the nation’s dollar earnings. According to the CBN, the price of Nigeria’s Bonny Light crude rose by 51 per cent in six months to $77.34 per barrel on June 25th 2021 from $50.99 per barrel on December 24th 2020.

Analysts at Financial Derivatives Company Limited projected further decline in the reserves, noting that the downward trend is due to increased dollar sales to banks by the CBN in its bid to clear the backlog of dollar demand by Foreign Portfolio Investors (FPIs).

Advertisement

They stated: “We expect the external reserves to decline further towards $33 billion in the near term due to the lingering backlog of unmet forex demand. However, higher oil prices will slow the pace of depletion of the external reserves.”

Continue Reading
Advertisement
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Headlines

Tinubu arrives Katsina to receive Buhari’s body for burial

Published

on

President Bola Tinubu, on Tuesday arrived in Katsina to receive the remains of the former President Muhammadu Buhari, who passed away in London on Sunday at the age of 82.

The News Agency of Nigeria (NAN) recalls that Vice-President Kashim Shettima departed London in the early hours of Tuesday with the remains of Buhari back to Nigeria.
On arrival at the Umaru Musa Yar’adua Airport Katsina, Tinubu was received by Gov. Dikko Radda,  former Vice-President Yemi Osinbajo, governors, Chairman of Dangote Group, Alhaji Aliko Dangote, Deputy Senate President, Jibrin Barau, and Speaker of the House of Representatives,  Tajudeen Abbas.
Others are Ministers, former governors, former and serving Senators, Alhaji Dahiru Managl,  former Minister of Information and Culture, Lai Mohammed, members of the All Progressives Congress (APC) National Working Committee (NEC), amongst others.
Continue Reading

Headlines

“He Never Turned His Back on the Needy” — Tributes Pour In Ahead of Buhari’s Burial

Published

on

Just hours before the burial of former President Muhammadu Buhari, heartfelt tributes have continued to pour in from beneficiaries of his many charitable deeds, with many describing him as a man who never turned his back on the needy.

Speaking to the News Agency of Nigeria (NAN) on Tuesday, Aminu Daura, a respected community elder, recalled how Buhari consistently provided foodstuffs during Ramadan for families, friends, widows, and orphans in his hometown.

“He never made noise about it, but many homes had food on their tables during fasting period because of him,” Daura said.

Advertisement

Abdullahi Sani, a physically-challenged man who received a tricycle from the Buhari Foundation in 2021, was overcome with emotion while speaking to NAN.

“I can move around and feed my family today because of Baba Buhari. I pray to Allah to reward him for giving hope to people like me,” he said, in tears.

Hajiya Fatima Yahaya, another resident, remembered Buhari’s acts of kindness during festive seasons.

Advertisement

“Even after he left office, his aides ensured that the usual support still reached us every year. He always remember his people,” she said, referring to his distribution of Sallah rams and food items to indigent families during Eid celebrations.

Other residents of Daura also shared memories of how the late former president quietly paid school fees and medical bills for struggling families, actions rarely publicized.

“Some of us benefited from his silent interventions. He was a true father and a great figure in the society,” said Ali Saidu.

Advertisement

On Monday night, Imams across various mosques in Daura held special Qur’anic recitations, praying for the forgiveness of Buhari’s sins and his eternal peace.

The Chief Imam of Daura Central Mosque, Sheikh Musa Kofar Barau, described Buhari as a humble leader whose legacy of service and compassion would remain alive in the hearts of the people.

Buhari is scheduled to be buried later on Tuesday in his hometown of Daura, Katsina State, in line with Islamic rites. The community is bracing to welcome thousands of mourners from across Nigeria and beyond.

Advertisement
Continue Reading

Headlines

King Mohammed VI Mourns Buhari, Praises Legacy of Nigeria’s Former Leader

Published

on

His Majesty King Mohammed VI of Morocco has extended heartfelt condolences to President Bola Tinubu, the family of the late former President Muhammadu Buhari, and the entire Nigerian people following Buhari’s death.

In a message of sympathy, the Moroccan monarch described the passing of the former Nigerian leader as a “sad occurrence,” expressing deep sorrow over the loss.

King Mohammed VI hailed Buhari as “an illustrious leader who worked untiringly to serve his country’s best interests and lead his people toward further progress and prosperity.”

Advertisement

He added: “Our thoughts and prayers are with you and the bereaved. I share your grief and want you to know how much I appreciated the working sessions I had with the deceased.”

Reflecting on their bilateral engagements, the king noted that his collaboration with Buhari led to the launch of promising development projects, “ushering a new era grounded in friendship and close cooperation between our two sister nations.”

Advertisement
Continue Reading

You May Like

Copyright © 2025 Acces News Magazine - All Right Reserved.

Verified by MonsterInsights