Foreign reserves increased by $3.06bn in three months – CBN

[Punch]

After opening the year at $32.985bn on January 3, the nation's foreign reserves increased by $3.063bn or 9.28 per cent to $36.048bn as at April 12.

Data posted by the Central Bank of Nigeria on its website showed that the reserves jumped from $34.749bn a month earlier to $36.048bn as at April 12, 2012.

The apex bank also indicated that the foreign reserves increased from $35.969bn on April 10 to $36.009bn on April 11 before hitting the latest figure a day later.

The reserves had dipped a few times since the beginning of the year, but had maintained a steady rise for most part of the first quarter, gaining $1.766bn between January 3 and February 3, 2012.

They jumped to $35.035bn on February 13 before decreasing to $35.021bn the following day and $34.978bn on February 15.

But the reserves thereafter moved up to $35.077bn by March 19 and remained on a positive note until April 12.

The difference between the 2012 opening figure and the position as at April 12 indicated a rise in the position of the nation's external reserves.

However, the CBN Governor, Mr. Lamido Sanusi, had on Friday warned that a fall in oil price in the international market would cause a lot of problems for the country's economy.

"There will be a very bad day and a lot of gnashing of teeth if the oil price crashes and we haven't saved a thing," he had said.

Oil production accounts for about 80 per cent of government revenues in Nigeria.

Sanusi added, "Our major concern is that a major decline in the price of oil or (domestic) output would lead to a massive depreciation of the currency, a collapse in reserves and a huge growth in deficits, and some of the states outside of the oil-producing region might actually find themselves in a situation where they are not able to pay salaries.

"I am trained to think in terms of 'what if' and that's the mindset I bring to my job. What happens if oil prices go to $50 a barrel? It has happened before."

He advised the government not to spend more than the N880bn earmarked in the budget signed by President Goodluck Jonathan on Friday for petroleum subsidies this year.

"I would simply like to see that the government does not pay a penny more than that, no matter what happens," he added.



The Punch