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Foreign Reserves Rise by $1.22bn in 11 Days

Latest reports from the Central Bank of Nigeria have indicated that foreign reserves have risen to $34.65bn within eleven days.

The data revealed that the foreign reserves rose by $1.22bn from $33.42bn as of April 29, 2020 to $34.65bn on May 11.

The reserves had taken a dip after rising to a high of $45.17bn on June 11, 2019, losing $11bn at $33.89bn as of April 28, 2020.

There have been calls from all angles to diversify the economy and the Central Bank Governor, Mr Godwin Emefiele, during the last Monetary Policy Committee meeting of the banking sector, reiterated the need for government to urgently reduce reliance on oil revenue by gradually diversifying the economy and improving tax collection.

He said, “Based on the current downturn in oil prices, staff projections indicate that output in 2020 would be less than earlier envisaged.

“The major downside risks to this outlook, however, include the continued spread of COVID-19; further decline in crude oil prices and the reduction in accretion to external reserves; reduced government revenue leading to weak aggregate demand; declining non-oil receipts; as well as infrastructural and security challenges.”

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