Nigeria’s external reserve drops by almost $1bn since Tinubu’s presidency

The Nigeria’s external reserve has fallen by almost $1 billion since the presidency of Bola Ahmed Tinubu.

This is despite the unification of the naira and the introduction of a managed exchange rate float. The external reserves was $35 billion as of May 30th but presently stood at $34.1 billion. This is despite the unification of the naira and the introduction of a managed exchange rate float.

The external reserves opened the year at about $37 billion but have now dropped to about $34.1 billion as of June 2023.

This means the reserve has fallen by about $2.8 billion in the first half of 2023 as Nigeria continues to struggle with weak crude oil output and a lack of foreign investor participation in the capital market. Nigeria’s external reserve is an important barometer for valuing the country’s currency. It is also used to estimate how many months of imports it can finance.