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.
