Naira recovery artificial, cosmetic – Experts reveals

the dollar.

He said, “Clearing the backlog only made foreign countries richer because those forex are repatriated to their home country. More that 80 percent of the settlement are not in our country. So, where did the naira find the strength from?

“I think we should ask the gov­ernment, especially the Central Bank of Nigeria (CBN) to explain the reason behind the sudden and gradual recovery of the naira.

“If you ask me, I will tell you that the CBN is back to the era of defending the naira. Manufac­turers are still not getting enough dollars to buy raw materials and implements needed to boost pro­duction.

“Looking at the oil sector, our production capacity is still under threat of illegal bunkering. Our output is still poor”.

As for balance of trade, most analysts believe it will boost the nation’s currency if it is positive to the country.

Nigeria recorded a N1.4 tril­lion trade deficit between October and December, last year, accord­ing to data compiled by the Na­tional Bureau of Statistics (NBS).

Between October and Decem­ber 2023, Africa’s largest economy export totalled N12.69 trillion, and total imports stood at N14.11 tril­lion, indicating a trade deficit of N1.41 trillion.

A trade deficit occurs when a country’s imports exceed its exports during a given period. In simpler terms, it means a coun­try is buying more goods and ser­vices from other countries than it is selling to them.

“In the fourth quarter of 2023, Nigeria’s total trade stood at N26.801 trillion. Exports were valued at N12.693 trillion, while imports amounted to N14.108 tril­lion,” NBS said.

The bureau reported that on an annual basis, Nigeria’s total trade was N71.880 trillion, of which imports amounted to N35.917 trillion, and exports were recorded at N35.962 trillion.

Significantly, Nigeria’s crude oil production marginally dropped in January 2024 com­pared to what it was in Decem­ber 2023.

The Organisation of Petro­leum Exporting Countries, in it’s monthly oil report for February 2024, said Nigeria’s crude produc­tion dropped from 1.422 million barrels per day in December to 1.419mbpd in January, decreasing by 3,000bpd.

However, the report said that the nation’s oil production rose from 1.33mbpd to 1.42mbpd, based on data obtained through direct communication.

Nigeria’s current oil output is below the nation’s 2024 budget target of 1.78mbpd.

Nigeria’s 2024 budget depends heavily on proceeds from crude sales.