Nigeria’s external reserves surge by 0.39% following $2.25 billion Afreximbank loan

Nigeria’s external reserves have witnessed a 0.39% increase, equivalent to $0.13 billion, in the early days of 2024. This uptick is attributed to the inflow of $2.25 billion from the African Import-Export Bank (Afreximbank), according to data from the Central Bank of Nigeria (CBN). As of January 3, 2024, the foreign currency reserves stood at $33.042 billion, marking a rise from the $32.912 billion recorded the previous Friday.

This positive development aligns with the disbursement of a portion of the $3.3 billion Afreximbank loan, contributing to the augmentation of Nigeria’s reserves. Muda Yusuf, the Chief Executive Officer of the Centre for the Promotion of Private Enterprise (CPPE), had earlier foreseen the stabilizing impact of the Afreximbank loan on the forex crisis.

Yusuf commented, “This Afreximbank fund is going to help stabilize the market further. Once the CBN can clear the backlog substantially, subsequent inflows will now be used to intervene directly in the market after the backlog has been cleared.”

It’s noteworthy that despite a relatively low dollar supply in the official foreign exchange market on Thursday, the Naira recorded its first gain against the US currency in 2024. This positive trend indicates a potential strengthening of Nigeria’s financial position in the global market.