Economy

Nigeria’s External Reserves Drop 8% to $39.6m in 2019

Published

7 years ago

09/12/2019

By Adedapo Adesanya

Data obtained by Business Post on Monday from the Central Bank of Nigeria (CBN) showed that from the first business day of this year, January 2, 2019, till Friday, December 6, 2019, the country’s external reserves dropped 8.13 percent from $43.076 billion to $39.576 billion. This represents a decline of about $3.458 billion.

Business Post reports that the reserves have been depleting lately as a result of decline in the price of crude oil on the international market. Oil, which is Nigeria’s mainstay in terms of foreign exchange, has suffered frequent drop in prices at the market as a result of the trade war between the United States and China.

From the data harvested from the CBN, the foreign reserve, as at the opening day in January was at $43.076 billion, but dropped to $42.297 billion at the end of the February 2019, shedding $779 million.

However, by the end of March, the reserves recovered and rose to $44.428 billion. It further increased to $44.793 billion as the end of April and as at end of the month of May, the external reserves stood at $45.123 billion, but dropped by $53.4 million by the close of June to $45.070 billion.

As the end of the month of July, the country foreign reserves had dropped further to $44.903 billion and in August, it fell to $43.608 billion.

Between the end of August and September, the external reserves shed a total of $1.76 billion to $41.852 billion, this extended into October as the reserves further recorded a decline to $40.464 billion.

In November, the CBN data showed that the reserves dropped below the $40 billion mark as the figures closed the month of November at $39.803 billion.

Into the final month of the year, the reserves have further recorded drops and as at Friday December 6, 2019, what is left in the reserves is not more than $39.576 billion.

Recently, when Governor of the CBN, Mr Godwin Emefiele, was asked to speak on the decline in the foreign exchange reserves to less than $40 billion, he said the drop should not cause panic or any agitation for unnecessary policies.

The CBN Chief had said the bank would continue to sustain its intervention in the foreign exchange market despite the drop in external reserves.

“If during the period of recession in 2015 to 2017 reserves dropped as low as $23 billion and yet we still managed our position and we were able to get out of the situation; we are saying now that at even below $40 billion, our threshold is still very high.

“We will never have any fears and there is no need for anybody to worry,” he had stated.

He further said that with crude oil selling at a price of about $63 per barrel, the drop in reserves to less than $40 billion was not enough reason for panic, noting that despite the drop in reserves, the bank’s intervention policy of sustaining the Naira would continue.

Foreign exchange reserves are assets held in reserve by a monetary authority in foreign currencies. These reserves are used to back liabilities and influence monetary policy. These are foreign banknotes, deposits, bonds, treasury bills and other foreign government securities.

These assets serve many purposes but are most significantly held to ensure that a government or its agency has backup funds if their national currency rapidly devalues.

Economy

Regency Alliance Urges Shareholders to Participate in N3.04bn Rights Issue

Published

3 hours ago

19/06/2026

Aduragbemi Omiyale

By Aduragbemi Omiyale

The N3.04 billion rights issue of Regency Alliance Insurance Plc is expected to open on Monday, June 22, 2026, and close on Friday, July 3, 2026, with shareholders urged to participate.

The underwriting firm recently signed an agreement on the rights issue, with board members, management, issuing houses, legal advisers, stockbrokers, and other key stakeholders in attendance.

Regency Alliance is offering to shareholders 3,201,000,000 ordinary shares of 50 Kobo each at 95 Kobo per share on the basis of one new ordinary share for every five ordinary shares held.

The purpose of the fresh capital raise is to bolster the company’s solvency ratios, support business growth, and invest in digital infrastructure and new product development.

The insurance company noted that the rights issue provides an opportunity to existing shareholders to subscribe for additional shares in proportion to their current holdings, protecting them from dilution while enabling them to participate in the organisation’s future growth.

“This capital raise will give us the firepower to meet evolving risks, expand our reach, and deepen the promise we make to every policyholder; that Regency Alliance will be there when it matters most,” the acting chairman of Regency Alliance, Mr Wale Taiwo (SAN), stated.

“We are particularly encouraged by the unwavering support of our shareholders who have stood by the company through its growth journey. We urge all eligible shareholders to take advantage of this rights issue and fully exercise their rights.

“By doing so, they will not only protect their investment from dilution but also participate directly in the exciting growth opportunities that lie ahead for Regency Alliance Insurance,” he added.

Also commenting, the Managing Director of the firm, Mr Bode Oseni, said, “Regency Alliance has always prided itself on being agile, customer-focused xd, and financially sound. The proceeds from this rights issue will accelerate our digital transformation, enhance claims efficiency, and enable us to introduce innovative products tailored to SMEs, Gen Z, and other underserved segments across Nigerian and beyond. We are not merely raising capital; we are raising our ambition.”

“We remain optimistic that our shareholders will embrace this opportunity and demonstrate their confidence in the company’s future by taking up their rights. Together, we are building a strong and more competitive insurance institution,” he added.

Economy

Unlisted Securities Exchange Retreats After Okitipupa Price Decline

Published

4 hours ago

19/06/2026

Adedapo Adesanya

By Adedapo Adesanya

Oil palm processing firm, Okitipupa Plc, and two other securities weakened by the NASD Over-the-Counter (OTC) Securities Exchange by 0.4 per cent on Thursday, June 18.

During the trading day, Okitipupa Plc lost N20.00 to end at N280.00 per share compared with the previous day’s N300.00 per share, NASD Plc declined by 36 Kobo to finish at N37.00 per unit versus N37.36 per unit, and Central Securities Clearing System (CSCS) Plc depreciated by 23 Kobo to N86.34 per share from N86.57 per share.

As a result, the market capitalisation retreated by N10.39 billion to N2.609 trillion from N2.619 trillion, and the NASD Unlisted Security Index (NSI) slid by 17.36 points to 4,361.09 points from 4,378.45 points.

Business Post reports that the sole price gainer for the session was Afriland Properties Plc, which improved by 65 Kobo to N16.20 per unit from N15.55 per unit.

Yesterday, the volume of securities transacted by market participants shrank by 71.6 per cent to 792,835 units from Wednesday’s 2.8 million units, the value of securities fell by 61.8 per cent to N49.0 million from N128.3 million, while the number of deals went down by 39.4 per cent to 20 deals from 33 deals.

Great Nigeria Insurance (GNI) Plc remained the most active stock by value on a year-to-date basis, with 3.4 billion units sold for N8.4 billion, followed by Infrastructure Credit Guarantee (Infracredit) Plc with 2.3 billion units valued at N6.5 billion, and CSCS Plc with 67.7 million units traded for N4.7 billion.

GNI Plc also closed the day as the most traded stock by volume on a year-to-date basis, with 3.4 billion units worth N8.4 billion, followed by Infracredit Plc with 2.3 billion units exchanged for N6.5 billion, and Resourcery Plc with 1.1 billion units sold for N415.7 million.

Economy

Naira Falls to N1,363/$ at Official Market

Published

4 hours ago

19/06/2026

Adedapo Adesanya

By Adedapo Adesanya

The Naira free-fall against the US Dollar continued in the Nigerian Autonomous Foreign Exchange Market (NAFEX) on Thursday, June 18, losing 0.24 per cent or N3.23 to trade at N1,363.30/$1 compared with the previous day’s N1,360.07/$1.

However, the domestic currency appreciated against the Pound Sterling in the official market during the session by N19.12 to trade at N1,805.69/£1 versus midweek’s N1,824.81/£1, and gained N12.89 on the Euro to sell at N1,565.07/€1, in contrast to the preceding day’s N1,577.96/€1.

At the GTBank FX counter, the Naira lost N1 against the Dollar to trade at N1,373/$1 versus Wednesday’s closing rate of N1,372/$1, and at the black market, it remained unchanged at N1,385/$1.

Tightness in FX liquidity continued to pressure the local currency, contributing to a decline in the official exchange rate due to rising demand for foreign payments.

Analysts also attribute the market liquidity dynamics to the lack of substantial Open Market Operation (OMO) bill positioning by foreign portfolio investors, who are key sources of hard currency inflows for the Central Bank of Nigeria (CBN).

The apex bank’s daily FX report revealed that interbank FX turnover increased to $69.918 million across 85 interbank transactions, up from $54.293 million the previous day.

As for the cryptocurrency market, Bitcoin (BTC) traded below $63,000 after losing 1.7 per cent to close at $62,742.28 on Thursday, as risk assets sold off worldwide, erasing the gains it made earlier in the week on the back of the US-Iran peace deal.

The pressure came from a wider retreat in markets as shipping through the Strait of Hormuz returned to normal under the signed US-Iran deal and eased what had been a historic supply shock.

Attention now turns to talks over Iran’s nuclear programme, with Vice President JD Vance saying a 60-day clock to settle the deal’s details has started.

During the session, Solana (SOL) crashed by 3.3 per cent to $68.68, Ripple (XRP) depreciated by 2.7 per cent to $1.13, Cardano (ADA) slid 2.4 per cent to $0.1606, Binance Coin (BNB) slumped 2.0 per cent to $576.11, Dogecoin (DOGE) slipped by 1.9 per cent to $0.0826, and Ethereum (ETH) went down by 1.7 per cent to $1,696.74.

However, TRON (TRX) improved by 0.1 per cent to $0.3204, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) traded flat at $1.00 each.