Nigeria’s foreign reserves suffered a massive dip in value as it plunged from the peak of $48.85 billion attained on May 2, to close the year at $43.61 by December 31, 201. A depreciation of $5.2 billion (N832 billion) in seven months.
The reserves, which gave the hope of increasing last year in view of the mostly favourable oil prices, however, could not, as a result of the drop in government revenue occasioned by crude oil theft and pipeline vandalism; increased government expenditure financed by the Excess Crude Account; and increase in the amount spent in shoring up the value of the naira by the Central Bank of Nigeria (CBN) among others.
According to the latest figure released by the apex bank on its website, the reserves dropped to $43.6 billion on December 31, 2013, approximately $500 million below the $44.1 billion recorded on December 28, 2012.
The $43.6bn also shows that the reserves dropped by about $700m below the $44.3bn it recorded at the beginning of 2013.
The reserves, which started the year at $44.3bn, began gaining momentum and peaked at $48.857bn on May 2.
However, it started to witness a gradual fall since May. The reserves had fallen to a nine-month low at $45.08bn on October 14.