Why Nigeria is Facing FX Crises –CBN

The Governor of the Central Bank of Nigeria(CBN), Mr. Godwin Emefiele, has blamed the low revenue inflow from oil sales for the nation’s current foreign exchange crises.

Emefiele stated this during a panel session at the Nigeria International Economic Patnership Forum held in New York, United States, yesterday.

According to the President, Nigeria has for several months, failed to meet its Organisation of Petroleum Exporting Countries(OPEC).

He said that the nation’s crude oil revenue further dropped in August as oil production slumped to 900,000 barrels from one million barrels recorded in July according to the latest OPEC monthly oil report.

The development according to him led to massive depreciation of the Naira with exchange rate at the Import and Export window crashing to N436 to $1.

He said the CBN was already addressing the situation with its RT 200 project which will help boost foreign exchange supply with non-oil export proceeds repatriation.

Emefiele said in the first quarter of 2022, export repatriation was about $64 million, second quarter rose to $622 million, while the third quarter increased to $954 million,with projections that by the last quarter, the figures would have increased further.

He regretted that Nigeria is still highly dependent on oil revenue to support its import obligations, while assuring that government was  aggressively looking at non- export for foreign exchange proceeds, to shore up the deficit in the months to come.

The CBN boss assured that Nigeria remains the best investment haven where returns on investment is guaranteed.

This was even as he noted that the country’s foreign exchange repatriation have equally dropped.