By our correspondent
Nigeria’s external reserves have risen slightly to $34.49 billion on March 21, 2024
Recall that as of February 29, 2024, the reserves stood at $33.52B, away from the figure of $33.37B which it was as of January 31, 2024.
This is according to a publication by the Nigeria Economic Update
Issue 11 of March 29, 2024.
The increment could be attributed to multiple factors including inflow of foreign capital and an increase in global oil prices.
Given the crucial role of foreign reserves in fulfilling import obligations and stabilizing exchange rates, the government must prioritize initiatives to bolster reserves and prevent depletion, the report said.
It said that stronger Naira against the US Dollar hinges on the country’s foreign reserve levels.
Also, diversifying export earnings beyond crude oil sales, the primary source of foreign earnings, is imperative.
Increasing exports from sectors like manufacturing can mitigate the volatility in foreign reserves caused by fluctuations in the oil market, upon which Nigeria heavily relies for foreign earnings.
“Achieving this requires creating a conducive business environment, addressing security challenges, ensuring accessible and reliable electricity, easing port congestion, and streamlining export processes, among other measures.
“While these measures will contribute to an increase in the competitiveness of Nigeria’s products in the international markets, it would also improves investors’ confidence in the economy, which in turn, would increase inflow of foreign capital and bolster the foreign exchange reserves,” the report said.
