Nigeria’s Reserves Lost $840.6m In 116 Days

Nigerian external reserves has shedded $840.6m in the last 116 days from January 1, 2022 to April 26, according to official data analysed by THE WHISTLER.

The country’s reserves fell to $39.67bn as of April 26, down from the $40.518bn posted on January 1, 2022, according to the Central Bank of Nigeria’s ‘movement of reserves.’

In the first quarter of 2022 ending March, the reserves dipped $971.36m from $40.518bn on January 1, to $39.55bn on March 31.

The reserves added $130.75m to settle at $39.67bn on April 26, compared to $39.55bn recorded on March 31 which is a 26-day period.

Nigeria has supported its reserves through its export revenue particularly, crude oil proceeds and Eurobonds issuance, according to official statements from the apex bank and the Debt Management Office.

Nigeria raised $4bn Eurobond in September last year and another $1.25bn in March.

The Minister of Finance, Budget and National Planning, Zainab Ahmed, had said the country is targeting to raise a $950m bond.

Oil prices have risen above the pandemic levels when they sold below $20 per barrel. As of Thursday, oil prices are around $104.8/ barrel.

Bonny Light, a Nigerian brand, is selling for $104.56, while Brass River and Qua Iboe are both selling for $108.09, as of Wednesday, April 27.

The Nigeria government has blamed oil theft as the cause for the low foreign exchange earnings from oil exports amid the prices.

In March, Austin Avuru, former Chief Executive Officer of Seplat Energy Plc, said 80 per cent of oil production in some pipelines was lost to oil theft.

The country lost $4bn to oil theft at the rate of 200,000 barrels per day in 2021.