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Nigeria’s foreign reserves recorded $2.35bn net inflow in seven months— Wale Edun


 Wale Edun, minister of finance and coordinating minister of the economy, says Nigeria’s foreign reserves recorded a net inflow of $2.35 billion in the first seven months of the year.

 

Edun spoke on Thursday at the Access Bank corporate forum in Lagos.

 

The minister said the stability of the naira in the foreign exchange (FX) market led to the increase in foreign reserves.

 

He also said access to foreign exchange has improved.

 

“We have relative currency stability. And of course, the all important margin of the rates. We’ve seen a gradual elimination of multiple exchange rates,” Edun said.

 

“We also have foreign exchange liquidity. The gross reserves are up. There has been a net inflow in the first seven months of this year of about $2.35 billion every month.

 

“On the fiscal side as well, government revenues are growing and the key to government revenue is not so much that the government has revenue to compete with the private sector.”

 

Edun, however, said Nigeria’s tax to gross domestic product (GDP) ratio is as low as 10 percent, that revenue to GDP is also around 15 percent.

 

As at September 12, Nigeria’s external reserves stood at $36.08 billion, according to data from the Central Bank of Nigeria (CBN).

 

The CBN had, on September 17, said the country’s foreign exchange reserves are at risk due to the petrol subsidy removal and lower crude oil earnings.

 

The apex bank also said increased external debt servicing obligations could pose risks for the growth of external reserves.

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