In an unprecedented move, the Central Bank of Nigeria (CBN) has disclosed that as of the second quarter of 2023, Nigeria’s Net External Reserve had plunged to a mere $859 million. This figure represents a significant drop compared to historical records and falls short of covering less than a month’s worth of import bills, according to Vanguard News.
The CBN did not specify the reasons for this decline or whether any measures are being taken to address the situation. The revelation comes amidst ongoing economic challenges facing Nigeria, including inflation, foreign exchange shortages, and dwindling oil revenues.
For Nigerians, understanding the state of the country’s Net External Reserve is crucial as it directly impacts the stability of the naira exchange rate, import costs, and overall economic health. The CBN has not yet revealed when this facility began operating or what factors contributed to its depletion.
Vanguard News is a leading Nigerian newspaper that provides comprehensive coverage on business, politics, and other current affairs.
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