Connect with us

Business

Nigeria’s external reserves drop by $384m, ECA $35m

Published

on

The Central bank of Nigeria (CBN) continues its withdrawal from Nigeria’s external reserves as it continues its intervention in the forex market.

Data obtained from its website shows that the reserves stood at $39.42 billion on Wednesday, May 4th 2022 compared to the $39.81 billion it stood on April 21.

What this means is that the reserves dropped in two weeks by $384 million.

The latest development follows the announcement from the federal government that the balance in the excess Crude Account, as of April 27, 2022, stood at a paltry $35.372 million.

The ECA is a savings account retained by the Federal Government and is funded by the difference between the market price of crude oil and the budgeted price of crude oil as contained in the appropriation bill.

Read also:Naira value sinks deeper against the dollar, despite CBN withdrawals from external reserves

Tolu Ogunlesi, the Special Assistant to President Muhammadu Buhari on Digital and New Media in a recent tweet to defend the current level of ECA said, “For those pointing out ECA was $2.1B in 2015, keep in mind $1 billion went to security purchases (incl 12 Super Tucano)

“Part went to Paris Club Refunds to States and a substantial portion invested into the Sovereign Wealth Fund/NSIA.”

The President’s aide also noted that the ECA was once $20 billion in 2009 before depleting to $2 billion in 2015.

Join the conversation

Opinions

Support Ripples Nigeria, hold up solutions journalism

Balanced, fearless journalism driven by data comes at huge financial costs.

As a media platform, we hold leadership accountable and will not trade the right to press freedom and free speech for a piece of cake.

If you like what we do, and are ready to uphold solutions journalism, kindly donate to the Ripples Nigeria cause.

Your support would help to ensure that citizens and institutions continue to have free access to credible and reliable information for societal development.

Donate Now