Nigeria’s foreign reserves have hit a historic low, plummeting to $24 billion in 2024 from $33 billion the previous year, according to a report from the International Monetary Fund (IMF).
The latest country report from the IMF highlighted a concerning trend in Nigeria’s financial landscape. Despite a surplus in the current account during the first half of 2023, there was a notable decline in reserves, raising alarms about the country’s financial stability.
The IMF report projected a further deterioration in the financial account throughout 2024–25. Factors contributing to this downturn include the absence of anticipated Eurobond issuances, substantial repayments totaling $3.5 billion for both Fund and Eurobonds, and anticipated portfolio outflows.
“Through 2024–25, the financial account will likely deteriorate, with no projected issuance of Eurobonds, large Fund and Eurobond repayments of $3.5 billion, and portfolio outflows.
“Hence, despite a current account surplus, officially reported reserves are projected to decline to $24 billion in 2024 before increasing again to $38 billion in 2028 as portfolio inflows resume,” the report stated.
However, data from the Central Bank of Nigeria (CBN) presented a slightly different picture. As of February 8, 2024, Nigeria’s foreign reserves stood at $33.12 billion, according to CBN records.
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