Nigeria’s foreign reserves dip

Nigeria’s foreign reserves have dipped from stood at $47.11 billion to $46.128 billion as at August 23, 2018.

 

The decline is the second time in two months, falling by $990.98, data from the Central Bank of Nigeria show.

 

The CBN noted that the evolution of the
Forex market in the country had been influenced by a number of factors
such as the changing pattern of international trade, institutional
changes in the economy and structural shifts in
production.

 

A former president, Association of
National Accountants of Nigeria, Dr. Sam Nzekwe, who described oil as
the nation’s major revenue earner, noted that the reserves had grown in
recent months because oil price was increasing, and
production was constant.

 

He, however, said political uncertainties
had led to a decline in foreign investment as many investors were
taking their funds out of the country.

 

“So, I believe that what must have
happened is that those of them whose investments are short-term like
shares and bonds, have found their way out of Nigeria,” he added.

 

He observed that most of the investors had not really been investing in the real sector.

 

According to Nzekwe, generally, a lot of people are not sure of what will happen during elections.

 

He added that although the government was
investing in infrastructure, the investments in infrastructure were
mostly being constructed by foreigners with foreign materials.

 

He said, “So basically, it will have some
impact on the reserves but I believe that the major one is the foreign
investment in the financial market and they are all short-term
investments.”