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The Central Bank of Nigeria has forecasted a slight reduction in the external reserves for 2024 due to debt servicing and other obligations.
This information was revealed in the inaugural edition of the recently published 'Central Bank of Nigeria 2024 Macroeconomic Outlook: Price Discovery for Economic Stabilisation'.
The report stated that the external reserves, which were at $33.09bn in 2023, may decrease slightly in 2024.
This is based on the assumption of continued payments of outstanding foreign exchange forward obligations, matured foreign exchange swaps, and debt service.
However, the projected improvement in crude oil earnings, along with recent reforms in the foreign exchange market and energy sector, is expected to mitigate the decline in external reserves.
As of Thursday, Nigeria's external reserves were at $35.77bn, with the outlook also anticipating a marginal increase in diaspora remittances to $19.42bn from $19.17bn in 2023.
The report also mentioned that public debt is expected to continue on an upward trajectory but remain sustainable in 2024 due to planned infrastructural investment, social interventions, and the securitisation of the Ways and Means Advances to the FGN.
