Nigeria’s FX Reserves Swell to $35.4bn Amid Oil Production Shortfall

Image

By Ashemiriogwa Emmanuel

The external reserves of Nigeria, the largest economy in Africa, grew by 1.7 per cent in one week to $35.4 billion from $34.8 billion, data obtained by Business Post has revealed.

The Central Bank of Nigeria (CBN), which publishes the amount left in the nation’s account, disclosed that on Thursday, September 9, 2021, the foreign exchange (FX) buffers stood at $34.8 billion but expanded to $35.4 billion on Thursday, September 16.

The week-on-week growth happened few days after the Organization of the Petroleum Exporting Countries (OPEC) release its latest report which showed that the nation’s crude oil production fell to 1.239 million barrels per day in the month of August.

The organization, in its monthly oil market report last Monday, said that the development represented a 6.7 per cent drop from the 1.323 million barrels per day Nigeria recorded in July.

Despite the performance of the Nigerian oil in the international market as its principal source of forex flows, the nation’s external reserves, in recent weeks, have maintained an upward trend which could be attributed to earnings from other sources, including non-oil exports, capital importation, as well as foreign investment flows.

The recent rise in the price of crude oil has been the major reason, covering up in the oil production shortfall. It means if Nigeria produces 1.2 million barrels of crude oil at a global price of $70 per barrel, it earns $84 million but when it produces 1.3 million barrels at $50, it only earns $65 million.

A look at the movement in the country’s reserves showed that on September 9, the total amount in the external savings stood at $34.8 billion but the next day, the buffers increased by $79.9 million to $34.9 billion.

On the first business day of last week, the reserves gained about $250 million to close at $35.1 billion and on Tuesday, September, 14, the forex reserves rose by $82.2 million to $35.3 billion and at the midweek, the amount jumped to $35.4 billion.

Business Post reports that the total amount in the country’s external reserves is projected to hit $40 billion by the end of October 2021 as a result of the proposed $3 billion Eurobond sale slated for the month.

Share
Related Stories
Image
25-September-2023

Nigeria Repays $12.56bn External Debt in 15 Years

By Adedapo Adesanya Nigeria has repaid a total of $12.56 billion in external debt as of 2022, data from Intelpoint showed. According to the latest debt figures, Nigeria’s total public debt rose by 75.3 per cent to N87.38 trillion at the end of the second quarter of 2023 against N49.85 trillion recorded in the first quarter of the year. The rise came as the country securitised the N22.71 trillion Ways and Means Advances of the Central Bank of Nigeria (CBN) to the federal government. The overdraft is a loan facility through which the CBN finances the shortfalls in the government’s

Image
25-September-2023

Experts Advise on How to Successfully Close eToro Account in 2023

eToro is like a big global marketplace for people who want to trade. It has been around since 2007 and serves folks in over 140 countries. It’s great for both the pros who know their stuff and newcomers who are just starting out. They even have a practice account for beginners and ways for people to earn without doing much. Sometimes, though, things don’t work out, or people just change their minds. Traders Union has got you covered with a guide on how to close eToro account the right way. Comparing eToro account options eToro offers trading conditions that many

Image
25-September-2023

Adelabu Calls for Collective Efforts Towards Nigeria’s Energy Sector

By Adedapo Adesanya The Minister of Power, Mr Adebayo Adelabu, has called for collective efforts to shape the energy sector in Nigeria, noting that no meaningful economic growth can be achieved without it. Mr Adelabu said this at the Nigeria Energy 2023 leadership summit recently held in Lagos, with the theme Unlocking new value with reforms, investments, and technology which saw in attendance industry leaders. The Minister said, “Energy is the lifeblood of any modern economy of which Nigeria is no exception. No meaningful economic growth or industrial development can be achieved without energy. “We can be talking of potential

Image
25-September-2023

FG Targets $55.2bn Investments from Oil and Gas Sector

By Adedapo Adesanya The Nigerian government is targeting an estimated $55.2 billion in oil and gas investments by 2030, according to the Special Adviser to the President Bola Tinubu on Energy, Mrs Olu Verheijen. She said the government has wrapped up a series of strategic engagements with 15 leading international and independent oil and gas companies operating in Nigeria. The President’s aide recently organised sessions in Lagos and Abuja in partnership with the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) to review ways to improve the sector and address the nation’s revenue emergency whilst contributing to stabilising Nigeria’s economy. Involved in

More Stories
Image
11-August-2018

SEC Plans Fintech Guideline for Nigerian Capital Market

By Dipo Olowookere Acting Director-General of the Securities and Exchange Commission (SEC) in Nigeria, Ms Mary Uduk, has disclosed that plans are underway to come up with a framework for financial technology (fintech) for the nation’s capital market. The SEC chief made this disclosure on Friday while addressing newsmen on outcome of the two-day quarterly Capital Market Committee (CMC) meeting held in Lagos. Business Post reports that the meeting was well attended by stakeholders in the market, including Chairman of the House of Representatives Committee on Capital Market and Institutions, Mr Tajudeen Yusuf, amongst others. The event, according to Ms

Image
11-September-2023

Unity Bank Aggressively Drives Retail Growth, Grows Earnings to N27.5bn

By Aduragbemi Omiyale Despite the harsh operating environment and the unexpected policies of the government that affected businesses in Nigeria, Unity Bank Plc showed resilience in the first six months of 2023. In its half-year unaudited financial statements filed to the Nigerian Exchange (NGX) Limited over the weekend, the bank marginally improved its gross earnings by 0.37 per cent to N27.5 billion from N27.4 billion in the first half of last year. It was observed that 10 per cent growth in the fees and income commission to N3.5 billion from N3.2 billion helped the lender jerk up its income in

Image
16-August-2023

50% of NGX Listed Companies Fully Adopt Sustainability Reporting

By Aduragbemi Omiyale The chief executive of the Nigerian Exchange Regulation Limited (NGX RegCo), Ms Tinuade Awe, has disclosed that about 50 per cent of listed companies on the bourse have fully integrated sustainability reporting into their annual reports or have released dedicated standalone reports. She said this during a roundtable themed ESG Activity Reporting and Sustainable Investing at the Africa Social Impact Summit 2023, hosted by Sterling One Foundation and the United Nations Nigeria in Lagos recently. At the event, she advised organisations to incorporate Environmental, Social, and Governance (ESG) considerations into their overarching business strategies, emphasising the importance

Image
04-April-2018

Three New Directors Join UAC of Nigeria Board

By Dipo Olowookere Three new directors have been appointed into the board of directors of UAC of Nigeria Plc. The new appointees are Mr Folasope Babasola Aiyesimoju and Mrs Olufunke Ighodaro, who are Non-Executive Directors; and Mr Peter Benedikt Mombaur, who will serve as alternate Director to the new Directors. A statement issued by the firm disclosed that the three directors are expected to bring into the board their wealth of experience. A brief profile of the appointees shows that Mr Aiyesimoju is a finance professional with experience spanning corporate finance, principal investing and private equity. Over the course of

Image
30-November-2019

LASTMA Officer Stoned to Death in Apapa

An official of the Lagos State Traffic Management Authority (LASTMA), Mr Ola Oyeshina, has died after he was allegedly stoned to death by two individuals in the Apapa area of the state. A statement issued by the agency said Mr Oyeshina died in the early hours of Saturday following injury he suffered from the incident on Friday evening while he was carrying out his lawful duty. General Manager of LASTMA, Mr Olajide Oduyoye, in the statement, condemned the continued attack on the officers in the discharge of their official duties and responsibilities. “The officer was on duty at Iganmu-Sifax axis

Image
10-August-2021

FG, SMEDAN Train 5,365 Youth Entrepreneurs Across Nigeria

By Adedapo Adesanya The federal government, through the Small and Medium Scale Enterprises (SMEDAN), has commenced the training of 5,365 youth entrepreneurs across the country. This was disclosed by Mr Dikko Radda, the Director-General of the body, at the inauguration of the programme tagged National Business Skills Development Initiative (NBSDI) on Monday in Sokoto. He said that 145 entrepreneurs were selected in each of the 36 states and the FCT for the programme which is focusing on harnessing Micro, Small and Medium Enterprises (MSMEs) towards the entrepreneurial revolution in the agriculture and commerce industries. He noted that the programme was

Image
30-September-2017

World Bank Seeks SA Firms’ Participation in $45b Projects

By Dipo Olowookere South African companies have been invited to stake a claim to the $45 billion that the World Bank Group has set aside for projects in Africa. Executive Director of the World Bank representing Angola, Nigeria and South Africa, Ms Bongi Kunene, made this call at a seminar on Doing Business with The World Bank Group that was co-hosted with the Department of Trade and Industry (the dti) through its Trade Invest Africa Division in Sandton. The purpose of the seminar was to provide a platform for the Group to share information on how it works with the

Image
06-April-2017

ACAP Canary Growth Fund Delivers 13% Return in 2016

By Quantitative Financial Analytics ACAP Canary Growth Fund returned 13.74 percent in 2016, 19.91 percentage points above its benchmark, the Nigeria All Share Index which closed the year with a negative return of -6.17 percent. The fund’s 2016 performance is an improvement over its 2015 return of 5.76 percent. The fund which charges a 1.5 percent management fee has therefore generated an inception (10/28/2011) to date (12/31/2016) return of 51.76 percent in total returns terms (including the dividend of N0.04 paid in 2013). The fund’s assets totalled N1.2billion as of December 30, 2016, up 3.34 percent from the end of

Ad
Ad
Recent Stories
Image
26-September-2023

NGX Performance Indices Drop 0.66% on Access Holdings’ Disappointing Interim Dividend

By Dipo Olowookere The Nigerian Exchange (NGX) kicked off the first trading session in the last week of the third quarter of the year on a negative note, with the key performance indices going down by 0.66 per cent on Monday. This was partly caused by the reaction of investors to the 30 Kobo interim dividend declaration of the board of Access Holdings Plc. A few days ago, its peer, UBA Plc, raised its interim dividend payment by 150 per cent to 50 Kobo and it was expected that Access Holdings would follow the same path. However, the company disappointed

Image
25-September-2023

Nigeria’s Internet Speed Averages 25Mbps

By Bliss Okperan Nigeria’s internet speed averages 25 megabits per second (Mbps), according to data from Surf Shark, a cybersecurity company focused on developing humanised privacy and security solutions. The ranking, contained in the 5th annual (Digital Quality of Life Index (DQL), showed that the country dropped two places to 7th from 9th within the last two years. A quick average analysis shows that at an average of 25 Mbps, Nigeria is far from the world’s fastest fixed internet Singapore, which is 300 Mbps and is ahead compared to the slowest fixed internet in the world, Yemen, which is 11

Image
25-September-2023

Bello Sacks Special Adviser Anthony Ogah

By Bliss Okperan The Kogi State Governor, Mr Yahaya Bello, has ordered the immediate removal of his Special Adviser on Stakeholders Relations, Mr Anthony Ogah. A statement issued on Monday by the Secretary to the Government of the state, Ms Folashade Ayoade, confirmed this development, though it did not state the reason surrounding the sacking of the Governor’s aide. However, it was disclosed that the termination of Mr Ogah’s appointment was with effect from Sunday, September 24, 2023. He has been directed to submit all government items. “In light of this press release, Mr Anthony Ogah is instructed to promptly

Image
25-September-2023

ASUU President Warns High School Fees Could Lead to Future Crisis

By Bliss Okperan The National President of the Academic Staff Union of Universities (ASUU), Prof Emmanuel Osodeke, has warned the rising school fees of tertiary institutions in Nigeria could backfire in the future if nothing is done by the federal government to stop it. Speaking on Channels TV Sunday Night, the union leader said in two years’ time, about 40 to 50 per cent of students in universities across the country could drop out of school because of their inability to pay the high fees. The don urged the federal government to stop the arbitrary increment in school fees by

Image
25-September-2023

Adelabu Calls for Collective Efforts Towards Nigeria’s Energy Sector

By Adedapo Adesanya The Minister of Power, Mr Adebayo Adelabu, has called for collective efforts to shape the energy sector in Nigeria, noting that no meaningful economic growth can be achieved without it. Mr Adelabu said this at the Nigeria Energy 2023 leadership summit recently held in Lagos, with the theme Unlocking new value with reforms, investments, and technology which saw in attendance industry leaders. The Minister said, “Energy is the lifeblood of any modern economy of which Nigeria is no exception. No meaningful economic growth or industrial development can be achieved without energy. “We can be talking of potential

Image
25-September-2023

NASD OTC Bourse Extends Green Run by 0.41% in Week 38

By Adedapo Adesanya The NASD Over-the-Counter (OTC) Securities Exchange continued its weekly positive run as it extended its gains by 0.41 per cent in the 38th week of trading in this year. The bullish posture was supported by the improvements in the share prices of six companies admitted to the alternative stock exchange in Nigeria. This increased the NASD Unlisted Securities Index (NSI) by  2.30 points from 805.65 points in the previous week to 808.95 points, as the market capitalisation of the bourse was relatively unchanged on a week-on-week at N1.140 trillion. Food Concepts Plc led the price gainers’ after

Image
25-September-2023

Cardoso Must Clear FX Backlog, Create Autonomous Forex Window—CPPE

By Adedapo Adesanya The Centre for the Promotion of Private Enterprise (CPPE) has called on the newly appointed Governor of the Central Bank of Nigeria (CBN), Mr Yemi Cardoso, to clear the backlog of foreign exchange as well as guarantee another recapitalisation in the banking sector. “The clearance of the backlog of forex obligations should be accorded high priority to restore the confidence of domestic and foreign investors,” the Managing Director of CPPE, Mr Muda Yusuf said in a press statement titled Ten Point Agenda For The CBN Governor, released over the weekend. Mr Cardoso and four new deputies on

Image
25-September-2023

Universal Insurance, Oando, UBA Emerge Busiest Stocks in One Week

By Dipo Olowookere The trio of Universal Insurance, Oando and UBA were the busiest stocks on the floor of the Nigerian Exchange (NGX) Limited last week, trading 2.212 billion units valued at N8.907 billion in 7,593 deals, contributing 56.56 per cent and 29.32 per cent to the total trading volume and value, respectively. In the week, investors transacted 3.911 billion shares worth N30.379 billion in 38,536 deals versus the 2.933 billion shares worth N47.449 billion exchanged in 44,654 deals in the preceding week. Financial stocks dominated with 2.774 billion units valued at N15.241 billion in 16,379 deals, contributing 70.92 per

Image
25-September-2023

Premiere Academy Student Emerges FCT’s Best Female Chess Player

By Aduragbemi Omiyale A student of Premiere Academy, Lugbe, Abuja, Miss Sonia Nwakanma, has retained her position as the Best Female Chess Player in the Federal Capital Territory (FCT) for the third year running. She clinched the latest accolade she first picked in 2021 at the prestigious Abuja Inter-School Chess Competition, rated by the World Chess Federation (FIDE) and the Chess Players Association of Nigeria (CPAN). Miss Nwakanma, who is a member of the 2023 graduating set of the school, attributed her achievement to her school’s robust in-house sports and personal development facilities that offer students opportunities to compete with

Image
25-September-2023

Nigeria Risks Shortage of Fertilisers as EU Frustrates Supply

By Adedapo Adesanya Nigeria faces a crippling fertiliser shortage as 34,000 metric tonnes of Russian Fertiliser meant for Nigeria is stuck at ports in the European Union (EU) as a result of continued war in Ukraine. Russia’s Foreign Minister, Mr Sergey Lavrov, confirmed this development on Saturday at the 78th United Nations General Assembly (UNGA) in New York, noting that 260,000 metric tonnes of Russian fertilisers have been stranded in EU ports since 2022. According to Russian News Agency, TASS, Mr Lavrov informed reporters that, “We are ready to give these fertilisers to African countries for free. It took six