Nigeria’s Foreign Reserves Rise To $42.8bn – CBN

Governor of CBN, Godwin Emefiele

An official of Central Bank of Nigeria (CBN) Mr. Isaac Okoroafor on Wednesday disclosed that Nigeria’s foreign reserves have hit $42.8 billion.

Okoroafor made the disclosure at a meeting with Rice Farmers Association of Nigeria (RIFAN) in Abuja.

He said the CBN policies to foster local production of food crops and reduce importation of goods had enhanced the growth of the reserves.

He said, “CBN decided to go into the funding of rice and other agricultural produce because we felt that food supply is key if price stability is to be maintained – food makes up a disproportionately large portion of the basket of prices in the country. We decided to target food supply to bring down inflation.

“Second, we went into this business of funding agriculture because we felt that food, especially rice, was a key component of importation in Nigeria. It was, therefore, a key component in the depletion of our foreign reserves.

“So we felt if we could deal with rice importation and replace it with local rice production, we would be working at rebuilding our reserves. And I tell you, we have succeeded in meeting those two objectives. Our serves are up.

“The reserves have gone to $42.8 billion as at yesterday (Tuesday) and you can see the inflation figures have been dropping and we expect this to continue throughout the year.”

In his remarks, the President of the RIFAN, Alhaji Aminu Goronyo, said the association has the capacity to handle the new collaboration with the CBN as over six million rice farmers across the states in the country have been placed on a digitised platform with biometric cards through which each member could receive adequate inputs and funding.

He said members would enjoy the services of tractorisation, inputs suppliers, such as seeds, fertilizers, agro-chemicals, extension services and off-takers, and that farmers get their market at the entrance to his farm.

Rice production under the Anchor Borrowers Programme is part of the efforts of the CBN to conserve the nation’s foreign exchange.