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Nigeria's foreign reserves increases by $1.4 billion courtesy of the World Bank - BUSINESS INSIDER
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Nigeria’s finances in June got a boost in its foreign reserves, according to data from its Central Bank. The Bank’s data showed that the country’s foreign reserves appreciated 4.06%. This is contrary to the controversial news that was reported in April concerning the Central Bank using the forex to buff the currency, which led to a $2 billion loss.
Nigeria’s foreign reserves hit $34.14bn on Friday, highlighting a 4.06% from $32.74bn on June 3, 2024, as seen in a report by The Punch newspaper.
This increase is owing to new loan rounds from the World Bank negotiated by the Federal Government.
To assist with the country's energy distribution industry, the Federal Government acquired a $500 million loan from the global lender, as revealed by the Bureau of Public Enterprises in May.
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The World Bank further stated that Nigeria will get $2.25 billion in aid to help stabilize its economy.
“This combined $2.25bn package provides immediate financial and technical support to Nigeria’s urgent efforts to stabilize the economy and scale up support to the poor and most economically at risk. It further supports Nigeria’s ambitious, multi-year effort to raise non-oil revenues and safeguard oil revenues to promote fiscal sustainability and provide sufficient resources to deliver quality public services,” the bank stated.
Nigeria's Foreign Reserve loss in April
Reports in April showed that the country's foreign currency reserves (forex) had dropped by more than two billion dollars in a single month. The fact that this was happening at the same time that the Nigerian currency was recovering alarmed the populace.
As of April 15, 2024, Nigeria's foreign exchange reserves have dropped to $32.29 billion from $34.45 billion on March
18, 2024, the lowest amount since $32.28 billion in 2017.
The Central Bank of Nigeria's governor, Olayemi Cardoso, provided an explanation for the country's declining foreign exchange reserves in the same month at the International Monetary Fund/World Bank Spring Meetings.
The bank revealed that, in contrast to earlier reports, paying debts rather than protecting Nigeria's currency is the reason for the steep decrease in the country's foreign exchange reserves.
