Foreign reserves loses $971m in Q1 amid 38% gain in global oil price
Nigeria’s foreign reserves dropped by $971.4million in first quarter (Q1) of 2022, according to figures obtained from the Central Bank of Nigeria official website.
The CBN’s figures showed that the foreign exchange buffer, which commenced January 1, 2022, at $40.52billion, dropped to $39.55billion as of March 31, 2022.
Following the invasion of Ukraine by Russian forces, crude oil prices have continued to increase as the global energy sector continues to experience disruptions.
According to Organisation of Exporting Countries (OPEC), the price of Reference Basket (ORB) appreciated by 38.4 per cent to $107.74 per barrel as at March, 31, 2022 from $77.86 per barrel when it opened January 03, 2022.
The CBN had expressed worries over the effects of massive oil theft on the oil sector and the external reserves.
Also, the Nigerian National Petroleum Company Limited lamented that the nation was not meeting its OPEC crude oil production quota lately.
The Governor, CBN, Godwin Emefiele, had at the last Monetary Policy Committee meeting expressed concerns over oil production and external reserves.
He said the MPC noted with concern the decrease in the level of the external reserves.
Emefiele said: “The MPC worries that, whereas global prices have gone up, this has been compounded by the shortage of supply of petroleum products.
