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External Reserves Rise by $1bn in Two Weeks

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CBN
  • External Reserves Rise by $1bn in Two Weeks

The country’s external reserves have hit $26.968bn, nearing the $27bn mark, the latest statistics posted on the Central Bank of Nigeria website have shown.

The reserves rose to $26.968bn on January 13 from $26.765bn on January 11, having hit $26.658bn and $26.552bn on January and 10 and January 11, respectively.

Between December 30, 2016 and January 12, 2017, the foreign exchange reserves rose from $25.8bn to $26.8bn, indicating an accretion of $1bn in two weeks, the CBN data showed.

The foreign exchange reserves have been rising significantly in recent weeks following the gradual increase in crude oil price and production output.

Experts said the slowdown in foreign exchange allocation to forex markets by the CBN might have contributed to the reserves accretion.

Within the space of three days, the reserves rose by $300m from $26.2bn on January 6 to $26.5bn on January 9.

The foreign exchange reserves had hit $26.0bn on January 3, 2017, up from $25.8bn on December 30, 2017, the CBN statistics revealed.

The reserves ended last year with $25.84bn on December 30, 2016.

The foreign exchange reserves had risen to over four-month high of $25.7bn on December 28, up from $25.4bn on December 23.

However, currency and economic experts are not sure if the current accretion in the external reserves’ is sustainable amid a falling naira and acute shortage of dollar in the foreign exchange markets and the economy.

The CBN had spent $4bn from the nation’s external reserves to defend the local currency in the last 12 months, despite the staggering fall in the value of the naira against the United States dollar and other major foreign currencies last year

The controversial defence of the naira by the CBN has come under severe criticism from economists, who believe that the forces of demand and supply should be allowed to determine the exchange rate of the naira, at least to a considerable level.

The country’s reserves had recorded $23.89bn low on October 19. The reserves dropped by 15.9 per cent between 2015 and 2016.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

Economy

The 46th President of the USA, Joe Biden Reversed EX-President Donald Trump Immigrant Visa Ban on Nigeria

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Joe Biden Economic Impliccations on Nigeria

The 46th President of the USA, Joe Biden Reversed EX-President Donald Trump Immigrant Visa Ban on Nigeria

On his first day in office, the 46th President of the United States of America reversed the immigrant visa ban placed on Nigeria and other countries by the former president, Donald Trump.

The executive order, 9983, issued by the former president Donald Trump on January 31st, 2020, unveiled the ban on immigrant visas to six countries; Myanmar, Eritrea, Nigeria, Sudan, Tanzania, and Kyrgyzstan.

Amongst numerous executive orders signed by the new president of the United State, Joe Biden, on January 20th, was the reversal of some of the orders issued by his predecessor, Donald Trump, which bans citizens of certain countries from accessing the immigrant visa.

According to the Trump administration, a system was established to access three important criteria-

“whether a foreign government engages in reliable identity-management practices and shares relevant information; whether a foreign government shares national security and public safety information; and whether a country otherwise poses a national security or public-safety risk.”

The failure of Nigeria and other countries to measure up to this criteria landed them on the ban list.

Biden’s Press secretary, Pen Psaki said additional action which will ensure that the president-elect delivers his promise to the American people will be announced.

“In the coming days and weeks, we will be announcing additional executive actions that confront these challenges and deliver on the president-elect’s promises to the American people,” Pen said.

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Economy

Buhari to Spend N729 Billion on 24.3 Million Poor Nigerians

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Group of People Waving Flag of Nigeria in Back Lit

Buhari to Spend N729 Billion on 24.3 Million Poor Nigerians

President Buhari is working on spending N729 billion on 24.3 million poor Nigerians despite the present economic recession, weak industries and zero new job creation.

Sadiya Farouq, the Minister of Humanitarian Affairs, Disaster Management and Social Development, disclosed this during the inauguration of the Federal Government’s emergency intervention database for the urban poor.

In a statement released by Nneka Anibeze, the Minister’s Aide, the financial intervention would help cushion the impact of the COVID-19 pandemic on identified people.

According to the Minister, the Federal Government would disburse N5,000 each to 24.3 million poor and vulnerable Nigerians for a period of six months. A total of N729 billion.

In part, the statement reads, “According to records, about 24.3 million poor and vulnerable individuals were identified at the end of 2020 and registered into the National Social Register.

“Each beneficiary will receive N5,000 for a period of six months.

The government is embarking on handouts despite the nation’s fiscal challenges and economic recession. The N5,000 or N729 billion can help build or support available industries, fast track economic recovery and improve job creation against sharing it with people it will has little to zero impact on their lives.

This is one of the numerous leakages being addressed by the same administration. The database can not be verified neither are the people to be paid.

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Economy

FG Paying N1.1 Billion Per Day as Subsidy

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petrol Oil

FG Paying N1.1 Billion Per Day as Subsidy

The recent jumped in crude oil prices means landing cost of Premium Motor Spirit (PMS), popularly known as Petrol, has increased but the Federal Government has maintained the old pump price of N161 – N165 per litre.

In a series of reports, the Petroleum Products Pricing Regulatory Agency (PPPRA) open market price, the price fuel marketers are expected to sell, is N183 per litre as of yesterday. A break down showed N160 is the landing cost per litre while the additional N23 is the Petroleum Products Pricing Regulatory Agency (PPPRA) pricing template.

Therefore, with the payment of additional N23 as stipulated in the PPPRA pricing template and the national petrol per day consumption figure at 50 million litres, the Buhari led administration is offsetting about N1.1 billion on petrol consumption daily.

The Nigerian National Petroleum Corporation (NNPC) has been deducting the amount before remitting balance of oil sales to the Federation Account, according to a Businessday report.

An anonymous person in the oil marketing industry said: “We are back to the era of subsidy and Nigeria is bleeding badly because of this.

With deregulation, the current price of petrol should not be less than N181, so who is funding subsidy of the product for Nigeria to buy at the current fixed price?“.

Another oil marketers said, “the government does not have the boldness to allow full deregulation of petrol because of the spiral effects on Nigerians, and bearing in mind that Nigerians are in very hard times.

Alao Abiodun, the Head of Energy Research, New Nigeria Foundation, explained that “Because of the loans from the IMF and World Bank that they got with the condition that petrol should be deregulated, I believe the government is trying to manage the problem.”

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