Nigeria’s Reserves Drop To $39.5bn 

Nigeria’s foreign reserves stood at $38.483bn by May 31, 2022, declining by five per cent from $40.521bn reported by end of December 2021.

According to an analysis from the Central Bank of Nigeria’s by the end of April 2022, Nigeria’s foreign reserves stood at $39.579 billion, having declined by 2.3 per cent since December 2021.

Foreign reserves are assets held on reserve by central banks in foreign currencies, according to Investopedia. 

These reserves are used to support the economy and boost foreign exchange market during emergencies or periods of crunch.

Data show that Nigeria is an import-dependent and consuming nation. In 2021, the value of Nigeria’s total trade stood at $39.751tn, but total imports stood at &20.843tn while exports were valued at $18.907.79tn. 

However, over 70 per cent of the exports were made up of crude, which was shipped abroad, refined and re-imported.

Nigeria earned $45.56bn from crude and non- oil within the same period, according to the NBS’ Foreign Trade Statistics.  

Crude oil made up over 76.22 per cent of this amount, while the non-oil was 23.78 per cent. Non-oil exports were around $10.836bn.