Nigeria’s external reserves on recovery path – CBN | Thenigerialawyer

Nigeria’s external reserves are experiencing recovery after
recent years that the country has recorded a drop in its foreign
earnings, the Central Bank Governor, Godwin Emefiele, has said.

He said this during the 10th annual Bankers Committee Retreat in
Lagos on Saturday.

He said, “External reserves have recovered significantly from
$23bn in October 2016 to over $43bn as of December 3, 2018.

“While the drop in our export earnings arising from our reliance
on crude oil exposed the fragility of our domestic economy in 2016,
it also reinforced the view within the CBN and the Bankers
Committee on the need to revise our growth strategy as a
nation.”

With crude oil as a major source of the country’s foreign
exchange, he said the nation’s economy became sensitive to
fluctuations in the price of crude oil.

“Significant declines in the price of crude oil not only reduced
Nigeria’s export earnings, the nation was also subjected to higher
inflation and lower growth, given our dependence on imported
goods,” he said.

With the discovery of shale oil, along with policy measures
being put in place by advanced countries such as the United States
and China, towards reducing car emissions and supporting
alternative sources of energy such as battery powered cars, he said
it had become imperative to build up buffers that would insulate
the nation’s economy from volatility in the crude oil market.

According to the CBN governor, this can only be achieved if the
country develops and implements measures that improve productivity
of companies operating in Nigeria; reduce its dependence on
imported goods that can be produced in Nigeria; and increase its
imports of non-oil goods and services.

While these measures might take time to yield fruit, he added
that it remained the best course of action to take, knowing that it
would act as a catalyst for sustainable growth and job
creation.