The Central Bank of Nigeria has said that the sale of crude oil is no longer the source of the nation’s foreign reserves.
The CBN Governor, Godwin Emefiele, revealed this during the CIBN Annual Lecture on Friday.
Emefiele however expressed confidence that the Nigerian economy’s short-term outlook is still strong despite the drop in foreign reserves.
He said foreign reserve receipts decreased from US$3.0 billion per month to zero.
“The official foreign exchange receipt from crude oil sales into our official reserves has dried up steadily from above $3.0 billion monthly in 2014 to an absolute zero dollars today,” Emefiele said.
He emphasized how crucial it is to raise non-oil revenues to Nigeria’s influx of foreign currency. Emefiele argued that there is a valid justification for the CBN’s redesign of three different Nigerian currency denominations.
Emefiele also forecasted that the inflation rate would continue high and above the 12.5% threshold that promotes growth.
He said in the final quarter of 2022 and in 2023, the GDP growth rate will continue to be positive.
“We will maintain the current tight monetary policy stance in the near term, especially in view of rising inflation expectations and exchange market pressures,” he said.
Emefiele stated that the goals of price, monetary, and exchange rate stability will continue to be the primary focus of monetary policy.
According to the apex bank boss, credit to the primary private sector of the economy has increased by more than twofold from N13.2 trillion at the end of 2018 to N27.7 trillion as of September 2022.
He promised that the National Domestic Card Scheme will begin on January 16, 2023.
Emefiele alluded to the central bank’s initiatives to resurrect Nigeria’s textile and healthcare sectors.
For the record, oil and gas exports to other countries account for the majority of the funds required to maintain Nigeria’s foreign reserves.
However, an increase in crude oil theft has harmed Nigeria’s capacity to export, which has led to a decline in its foreign exchange reserves.
According to data from the CBN, Nigeria’s foreign reserves decreased to $37.17 billion as of November 15th, 2022. The country’s external reserves are at their lowest point this year and since September 30th, 2021, when it was hit hard by currency depreciation.
