Nigeria’s foreign reserves fell by $1.26bn from $41.76bn in October 2 to $40.5bn in October 30.
Figures obtained by The Tide from the Central Bank of Nigeria (CBN) show that the highest drop was recorded between October 4 and 7 where there was a drop of $190.3 million; October 11 to 14 with a drop of $149.18 million and October 18 to 24 with a drop of $115.4 million.
In broader analysis, the drop shows an average loss of $43,604,660 daily.
The reserves which had continued to shed in recent months dropped by $482.18m from N45.14bn as of July 8 to $44.65bn as of August 8 2019.
The bank disclosed in its economic report for third quarter of 2019 that the gross external reserves fell in the period under review.
Part of the report read: “Gross external reserves were $40.9bn as at September 25, 2019. This indicated a decrease of 8.6 per cent, compared with the level in the second quarter of 2019. The external reserves position would cover 5.2 months of import of goods and services or 9.2 months of import of goods only, based on the estimated value of import for the second quarter of 2019.
”A breakdown of the external reserves by ownership showed that the share of federation reserves was $0.27bn (0.7 per cent); Federal Government reserves, $7.0bn (17.1 per cent); and the CBN reserves, $33.62bn (82.2 per cent) of the total.”
However, some experts have attributed the downward trend of the reserves to lower crude oil prices and lower Foreign Portfolio Investors inflows.
In the past, when the reserves enjoyed some growth, the Central Bank Governor, Godwin Emefiele, had said: “External reserves have recovered significantly from $23bn in October 2016 to over $43bn as of December 3, 2018.
“While the drop in our export earnings arising from our reliance on crude oil exposed the fragility of our domestic economy in 2016, it also reinforced the view within the CBN and the Bankers Committee on the need to revise our growth strategy as a nation.”
With crude oil as a major source of the country’s foreign exchange, he said, the nation’s economy became sensitive to fluctuations in the price of crude oil.
The Lead Director, Centre for Social Justice, Eze Onyekpere told newsmen in Lagos that a reduction in foreign reserves could stem from various factors like a retardation in foreign direct investments, crash in oil prices, exceptional purchases demanding higher foreign exchange, debt servicing obligations, among others.
However, the CBN, in its robust interventions released various loans to local farmers cultivating various commodities to meet domestic demand and possibly export them. Some of the commodities are rice, oil palm, cotton, machinery and others.
More so, it has sustained its intervention in the foreign exchange market.
According to the second quarter capital importation report released by the National Bureau of Statistics, FDI inflows dropped by 31.41% from $8.48 billion recorded in the first quarter to $5.82 billion.
Lawmakers Vow To Resolve Rivers Port, BUA Terminal Crisis
Chairman, House of Representatives Committee on Ports and Harbours, Hon. Datti Garaba Muhammad, says the committee will intervene in the lingering court case between the Nigerian Ports Authority (NPA), Rivers Port Complex and the BUA terminal operators.
The chairman said the committee’s intervention would save the situation and improve business activities in the complex.
Hon. Muhammad spoke to newsmen in Port Harcourt while on an oversight function to the NPA, Rivers Port Complex, last Tuesday.
Accompanied by other members, Muhammad said:“We are here to hear the challenges, we want them to furnish us with details of the agreement, we want to see the concession agreement between NPA and BUA terminal”.
He said the committee was ready to bring peace between both parties so as to improve on the revenue accrued to the government.
Muhammad disclosed that both parties had approached the Federal High Court and Court of Arbitration in London over the issue.
He said as a committee, it is their responsibility to oversee both the NPA and the terminal operators doing business in the port complex.
Speaking earlier, the Port Manager, Rivers Port Complex, Engr. Yunusa Ibrahim Anji, had told the committee that NPA had decommissioned berth 8, which collapsed some months ago.
Berth 8 is being operated by BUA terminal operators.
The manager appealed to the committee to intervene in the lingering issue as it is affecting its revenue.
He said the collapse of the berth and the legal tussle between NPA and the operator were greatly affecting maritime activities in the port.
The manager said Rivers Port Complex is one of the ports with the highest numbers of private jetties, explaining that the port has over 36 private jetties across the state.
AfCFTA: MAN Urges Stakeholders To Address Vital Issues
The Manufacturers Association of Nigeria (MAN) has called on stakeholders of the African Continental Free Trade Area (AfCFTA) to address vital issues during negotiations to ensure that the overall goal is achieved by the continent.
MAN President, Mr Mansur Ahmed made the call yesterday at the opening ceremony of a two-day African Continental Free Trade Area National Forum, in Lagos.
The event is themed, “Effective Implementation for Industrialisation and Inclusive Economic Development in Nigeria.’
Ahmed said the key issues included technical and political challenges that must be resolved.
According to him, it is important that Nigeria benefits and ensures she meets the targeted seven per cent economic growth rate expected to take about 100 million people out of poverty.
“President Buhari is committed to lifting 100 million people out of poverty in the next 10 years; how can we ensure that the AfCFTA leads us towards that journey?,” he said.
Ahmed said the critical dimensions that must be addressed during conversations concerning the AfCFTA should include policies and regulations, rules and conduct of the players.
“The way we merge the processes, the agreements, regulations, institutions and how these work together to ensure that the game is being played in accordance with the rules and expectations.
“The issues need to be defined in a way that we see the complexities; technical and political, to ensure clarity.
“All these must be formulated in a way that all stakeholders understand their roles and obligations and therefore play according to the rules,’’the MAN president said.
Ahmed said that all negotiators were not of the same capacity and inclination, which would require harmonisation on a regional level to resolve issues such as market offer and collaboration.
He urged stakeholders to view the negotiations with a sense of collaboration and not allow any player deemed as too powerful to dominate.
“We must look at the interest of the group as a whole and the interest of the region, and what provides the best long term and sustainable interest of the region.
“There must be a strong commitment by our governments, various institutions and private sector groups to look beyond the norms and look at the goal for the region and continent,’’he said.
Oil Firm Commissions Projects In Host Communities
An indigenous oil company operating Oil Mining Lease (OML) 18 in Rivers State, Eroton Exploration and Production Company Limited, has put smiles on the faces of its host communities with projects estimated at hundreds of millions of Naira.
Projects commissioned recently in Minama, Ifoko, Sangama, Ido and Abonnema towns, include ultra-modern town halls, civic centres and an integrated agro-farm industry that have mopped up hundreds of youths from the unemployment market in the area.
Permanent Secretary in the State Ministry of Chieftaincy and Community Affairs, Mr. Felix Odungweru, who was the Special Guest of Honour commended the communities for the peaceful disposition and cooperation during the execution of the projects and assured that the Government of Chief Nyesom Wike would ensure that multi-national companies operating in the state develop their host communities.
Speaking to newsmen at Sangama in Asari Toru Local Government Area – shortly after commissioning the ultra-modern civic centre, the Cluster Development Board Chairman, Deacon Chrstian Sekibo, thanked the communities for nominating upright members of their communities to the membership of the board who had worked relentlessly to ensure the success of the various projects commissioned.
He promised to provide toilets for Minama Community in Asari-Toru LGA, in response to the people’s demand for toilets in the community.
Deacon Sekibo debunked the insinuation that youth restiveness prevents multi-national companies from developing their host communities, pointing out that the board received the best of cooperation from the communities youth.
“We received the best cooperation from youth of these communities. Their cooperation is an indication these youth in our communities were hungry for development. We could see it in their eyes, actions and attitudes,” he said.
Also speaking to newsmen at Ifoko Town in Asari-Toru LGA, after the commissioning of an ultra-modern town hall, consultant to the board, Dr Godwin MInimah of Godifems Consults Limited, said the interest of the host communities was paramount to Eroton E & P.
The second day of the programme witnessed the commissioning of the integrated agro-farm in Ido Community in Asari-Toru LGA with offices and staff quarters for essential staff.
In his welcome address, Deacon Sekibo said, “upon payment of the 2015/2016 project funds by the joint ventures partners- NNPC/Eroton E&P, the DAA3 board agreed to invest it in an income yielding project and accordingly settled for an agro business. Hence, the integrated agro farm project.
“The farm has poultry with an installed capacity for 15,000 birds; fishery with capacity for 20,000 catfish fingerlings; snailery with capacity for 8,000 snails and piggery with capacity for 144 piglets and pigs.”
Commissioning of the Ido Integrated Agro Farm and the Abonnema civic centre were withnessed by the Permanent Secretary in the state Ministry of Chieftaincy and Community Affairs, Mr Felix Odungweru, representatives of Eroton company, community chiefs and elders, among others.
By: Donatus Ebi
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