Foreign Reserves Rises To $31.89bn

As a result of tight fiscal policy anchored on blocking of leakages, Nigeria’s foreign reserves has risen from $29.1 billion left by the immediate past government to $31.89 billion presently.

Governor of the Central Bank of Nigeria (CBN), Godwin Emefiele made this disclosure yesterday while briefing the Senate leadership on the state of the nation’s economy and actions being taken by CBN to boost it.

Emefiele, at the briefing explained that though the crash in the price of crude oil in the international market since last year still has serious rippling effect on Nigeria’s economy, being a mono-product one over the years, signs of recovery are already emerging, one of which is the rise in the nation’s foreign reserves from $29.1billion to $31.89billion within a space of five weeks.

He said: “Reflecting the sharp fall in oil prices and speculative foreign exchange activities, the external reserve declined from $37.3 billion in June 2014 to $29.1 billion at the end of June of 2015.

“But today, I am delighted to note that with the strong efforts of President Muhammadu Buhari, to block all leakages as well as the vigilant demand management strategy of the CBN, we have seen our foreign exchange reserve begin a gradual recovery.

“As at the 7th of July, 2015, the reserve stood at $31.89 billion, a trend we find extremely gratifying”.

He explained further that the CBN took a number of proactive actions to stem the tide of downward trend of the economy in the heat of the crash of oil price, which according to him, have helped a lot in stabilising the economy now.

But the senate leadership at closed door session with the CBN governor and other management staff, directed them to liaise with the Customs towards recovery of the N30billion waiver granted importers of rice, chicken and palm oil by the Jonathan administration.

Senate President, Bukola Saraki who stated this, said the money must be recovered from those who wrongly benefitted from a waiver that was in the first place, not needed , by glaringly contradicting government policy of import substitution.

He said: “The governor, we thank you for the briefing. As you said, it is our belief, particularly that the recent policy you have taken on some selected items, particularly key ones that has to do with agricultural products like rice, chicken, palm oil, and even in the areas of textiles.