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Reps Committee to Compel CBN, NIRSAL, Banks, NBS Over Agricultural Intervention Probe
By Oladosu Adebola Oluwaseun
The House of Representatives Ad-hoc Committee investigating Agricultural Subsidies, Intervention Funds, Aids and Grants Programmes from 2015 to 2025 has expressed strong displeasure over what it described as the persistent disregard for parliamentary invitations by key government agencies and financial institutions.
At an investigative hearing held on Wednesday at the National Assembly Complex, the committee directed the Central Bank of Nigeria (CBN), NIRSAL Microfinance Bank, SunTrust Bank, Stanbic IBTC Bank and the National Bureau of Statistics (NBS) to appear unfailingly before it, warning that continued non-compliance would compel the House to invoke relevant constitutional provisions to enforce their appearance.
Chairman of the committee, Hon. Jamo Aminu, issued the directive following the repeated failure of several invited institutions to honour invitations despite multiple notices.“It is disheartening that despite repeated invitations from the House of Representatives to government agencies, including agencies linked to the United Nations system, some have refused to appear or have outrightly ignored this investigative process,” Aminu said.
Consequently, the committee resolved to activate all constitutional mechanisms available to compel the defaulting agencies and financial institutions to appear and submit the required documents.“On this premise, I am constrained to move a motion to compel NIRSAL MFB, the Central Bank of Nigeria, SunTrust Bank, Stanbic IBTC Bank and the National Bureau of Statistics to appear before this committee,” he added.The panel is probing trillions of naira expended on agricultural intervention programmes implemented by the Federal Government and the CBN between 2015 and September 2025, following a House resolution of July 23, 2025. The investigation covers major schemes, including the Anchor Borrowers’ Programme (ABP), the Agribusiness/Small and Medium Enterprise Investment Scheme (AGSMEIS), the Accelerated Agricultural Development Scheme (AADS), the Nigerian Electricity Stabilisation Fund (NESF), and other intervention windows.
While lamenting the absence of key institutions, the committee also faulted the quality of submissions by Jaiz Bank, Unity Bank, Sterling Bank and Access Bank. Although their representatives were present at the hearing, they failed to provide comprehensive documentation as required.
The committee subsequently directed that the appropriate heads of all concerned institutions must personally appear before it and gave the affected banks one week to submit detailed documentation strictly in line with the committee’s guidelines.“This committee will not accept half-truths, cosmetic compliance or administrative evasions,” Aminu warned, stressing that any misleading or falsified records would attract sanctions under Sections 88 and 89 of the 1999 Constitution (as amended).
In his opening remarks, the chairman emphasised that the investigation was not a witch-hunt but a constitutional duty aimed at promoting transparency, accountability and value for money in public agricultural spending.“ Our focus is not merely on how much was released, but how the funds were applied, who benefited, what was achieved, and what value accrued to the Nigerian people,” he said.
He further disclosed that the committee would conduct forensic reviews and on-site inspections of ministries, agencies, banks and project locations to verify submissions and confirm the physical existence and impact of funded projects.Recall that during the inauguration of the committee last week, the Speaker of the House of Representatives, Rt. Hon. Abbas Tajudeen, represented by Hon. Sunday Umeha, pledged the full support of the House to the probe, warning that no institution would be shielded from scrutiny.“
There can be no national security without food security,” the Speaker declared, noting that despite massive agricultural spending over the past decade, food prices remain high and food insecurity persists.“It is unacceptable that trillions of naira were committed to agriculture with little impact on food security, rural livelihoods and import dependence,” he said.
The Speaker further warned that any Ministry, Department or Agency, as well as any Participating Financial Institution, that fails to honour invitations, withholds information or provides false records would face summons, contempt proceedings or warrants in line with constitutional provisions and the Legislative Houses (Powers and Privileges) Act.“No institution is above the law. No agency is immune from oversight,” he stated.
February 6, 2026
CACOL Commends Federal Government for Removing Nigeria from FATF Grey List
By Jabiru Hassan
The Centre for Anti-Corruption and Open Leadership (CACOL) has applauded the Federal Government of Nigeria for successfully securing the country’s removal from the Financial Action Task Force (FATF) grey list.
In a statement signed by Tola Oresanwo, Director of Administration and Programmes, on behalf of CACOL Chairman Mr. Debo Adeniran, the organization described the achievement as a “significant milestone in restoring confidence in Nigeria’s financial system and strengthening its global economic reputation.”
Nigeria was placed on the FATF grey list in 2023 following identified weaknesses in its efforts to combat money laundering, terrorist financing, and related financial crimes. The FATF grey list typically includes countries whose anti-money laundering and counter-terrorist financing (AML/CFT) systems are considered inadequate or poorly enforced.
Adeniran commended the coordinated actions of key institutions such as the Central Bank of Nigeria (CBN), the Economic and Financial Crimes Commission (EFCC), and the Nigerian Financial Intelligence Unit (NFIU), among others, for their roles in ensuring compliance with international standards.
“The improved coordination, implementation of corrective measures, and strengthened regulatory oversight among these institutions were instrumental in achieving this positive outcome,” the statement read.
CACOL, however, urged the government to sustain the reforms that led to the delisting, warning that any decline in enforcement or oversight could undermine the country’s credibility and risk a return to the grey list.
The organization called for stronger institutional frameworks and continuous monitoring to ensure financial transparency and accountability.
“To safeguard this progress, the Federal Government must institutionalize inter-agency collaboration to monitor financial crime risks, strengthen compliance mechanisms through regular audits and capacity building, and promote transparency in both public and private financial transactions,” Adeniran advised.
He also emphasized that anti-corruption efforts must remain free from political interference to ensure their effectiveness and sustainability.
According to CACOL, Nigeria’s removal from the FATF grey list should not be viewed as an end but as a call for continued vigilance, reform, and integrity in managing the nation’s financial systems.
“This achievement should serve as a reminder that sustained reforms, integrity, and vigilance are indispensable to Nigeria’s economic progress and international reputation,” the statement concluded.
October 28, 2025
CBN Vows To Stabilize Naira, Improve Forex Market
The acting Governor of the Central Bank of Nigeria (CBN), Folashodun Shonubi, says the apex bank will, in the next few days, be taking steps to improve the liquidity in the foreign exchange market.
Speaking on Monday, Shonubi disclosed that he had met with President Bola Tinubu, who voiced his concern regarding developments in the market and its impact on Nigerians.
The acting CBN governor shared his belief that the changes in the market are driven mostly by speculative demand and was confident that the steps that will be implemented soon will significantly impact the market.
Shonubi said;
“Mr. President is very concerned about some of the goings on in the foreign exchange market.
“One of the things we discussed is what could be done to stabilise and what could be done to improve the liquidity in the market and also the goings on in the various other markets, including the parallel market.
“He’s concerned about its impact on the average person, since, unfortunately, a lot of activities that we do, which are purely local, are still referenced to exchange rates in the parallel market.
“We have discussed and I have shared with him what we’re doing to improve supply. If you look at the official market, you will find that that market has been fairly stable and the spreads of the difference have not fluctuated as much.
“We do not believe that the changes going on in the parallel market are driven by pure economic demand and supply, but are touched by speculative demand from people.
“Some of the plans and strategies, which I am not at liberty to share with you, means sooner rather than later, the speculators should be careful because we believe the things we’re doing, when they come to fruition, may result in significant losses to them.
“But my presence here is more about the concerns the president has and his needs to know that we are doing something about it, assurances of which I have given him totally.
“We are doing things which will significantly impact the market in a few days time and we will all see it.
“The intention is to ensure the environment operates at a level that’s more efficient, but also that is also very reasonable and does not have a negative impact to the best that we can on the lives of the average person.”
August 15, 2023
Eno Tasks CBN On Anti Inflation policies
By Ogenyi Ogenyi, Uyo
Governor Umo Eno of Akwa Ibom has enlisted the support of Central Bank Of Nigeria, CBN , towards formulating monetary policies to bring down inflation and boost the country’s economy.
This was the hallmark of discussions with officials of the Central Bank of Nigeria, CBN, led by the Director of Branch Operations Mrs Elizabeth Fasoranti, who were on a courtesy visit at Government House, Uyo yesterday.
Eno who identified inflation as the bane of development, explained that the prevailing inflation in the country has affected all aspects of life by stifling government as well as individual endeavours and called on the apex bank to look inwards with a view to ameliorating the dwindling economy to improve on the living standard of the people.
“We appeal to the CBN to support us in terms of monetary policy formulation by doing everything to bring down the cost of inflation in our country.” He stated.
The Governor told the CBN delegation that his government is working assiduously to transform the state to a tourist haven by consolidating on past administration’s strides in infrastructure and tourism and announced government intention to construct the road leading to the Blue River to ease assessment of the tourist site.
“Actually, we are trying to build on the qualities that have made you to choose Uyo for the conference; to build on our tourism and hospitality potentials. That is why when people stop by to see us and ask for courtesies, we do everything to receive them.
“It is part of sending the right signal to the world that we treat our people well, we give them respect that will endear them to come again, like you have acknowledged that you were very well received.
“The Beach in Ibeno and the Green River; the road that leads to the place is a bit bumpy but we are working towards opening it up as part of our strategic plans to boost tourism in our State, so that as people come to work, they can also find leisure, what we have popularly call the “Happy Hour” because all works without play makes jack a dull boy.” He explained.
While commending Fasoranti for securing a vantage position as manager in the Apex Bank , Governor Eno noted that the days when women were relegated to the background were over and congratulated other and her colleagues for making it to the echelon of their career.
The Governor applauded the branch comptrollers of CBN for choosing Akwa Ibom for their conference, and assured of continued commitment of his government to sustaining the peaceful ambience that makes the state a destination of choice for individuals and corporate organisations.
Earlier, Fasoranti had said that that they were in Uyo for the 43rd Conference of the 37 Branch Comptrollers of CBN and decided to call on the Governor as a mark of courtesy to inform him of their stay in the state.
She noted the good roads network, peaceful environment, hospitable nature of the people and healthy delicacies as some rare attributes that endear Akwa Ibom to the outside world.
Fasoranti acknowledged the state government’s collaboration with the CBN branch over the years and pledged their readiness to partner government towards achieving greater success.
She said already the Uyo branch of the Apex Bank has undertaken renovation of primary school in Nsit Ubium, provision of portable water scheme in Ibesikpo and renovation of Ekemini Abasi orphanage in Abak as part of its Corporate Social Services in the state.
She thanked the state government for the warm reception, even as he nursed the hope of more fruitful engagements between government and the CBN.
August 12, 2023
Currency In Circulation Rises By 87.05% Hits N2.26tn, says CBN
Currency outside banks rose to N2.26tn at the end of June 2023, according to the latest figures from the Central Bank of Nigeria.
According to figures obtained from the CBN, the currency outside banks rose by 185.68 per cent (N1.47tn) between January 2023 (N792.18bn) and June 2023 (N2.26tn).
We also learnt that currency in circulation in the country rose by 87.05 per cent (N1.21tn) from N1.39tn in January 2023 to N2.6tn in June 2023.
It had earlier dipped by 235.03 per cent to N982.09bn at the end of February from N3.29tn at the end of October 2022, on the back of the naira redesign policy of the CBN.
Figures obtained from the CBN revealed that N2.3tn was mopped up from circulation during the period under review.
“Currency-in-circulation is defined as currency outside the vaults of the central bank; that is, all legal tender currencies in the hands of the public and in the vaults of the Deposit Money Banks,” according to CBN.
The CBN stated that it employed the ‘accounting/statistical/withdrawals and deposits approach’ to compute the currency in circulation in Nigeria.
July 31, 2023
CBN, It’s Time We Retooled Interest Rate To Better Citizens Wellbeing
Adefolarin A. Olamilekan
The aftermath of fuel subsidy removal is still a subject of discourse in Nigeria’s economic projections, especially as citizens continue to lament the harsh impact under the present administration.
Unfortunately, the economic environment is in bad shape, with so much to contend with, from soaring transport fare, to unbearable cost of food, goods and services, not to talk of logistic chain disruption as well as uncertainties in financial flow, such as income stability.
However, the big blow from all this, is the decision of the Central Bank of Nigeria (CBN) led by its acting Governor, Folashodun Adebisi Shonubi and Monetary Policy Committee (MPC), in tightening monetary measures on cash flow in the hope of keeping inflation at bay, with controllable fiat of hiking the interest rate to 18.75%.
Regrettably, inflation is making a mess of our currency, by weakening purchasing power and eroding its value.
In the same vein, rise in price of staple foods like bread, cereals, potatoes, yam, meat, fish, oil, rice, and sugar, is worrisome to many Nigerians across board.
So, what can an interest rate hike do as a monetary instrument, to grow the economy of Nigeria?
The first shot at interest hike under Folashodun Adebisi Shonubi as acting Governor of the Apex bank, at 18.75% with an asymmetric corridor of +100/-300 basis points around the MPR from the previous corridor of +100/-700 basis point around the MPR (18.50%), according to the apex bank is moderate but for us it is critical.
Although, the reserve bank maintained a Cash Reserve Ratio (CRR) at 32.5% and retained the Liquidity Ratio (LR) at 30%.
However, for the record, since middle of last year 2022, the CBN in it’s usual characteristic after its ritual Monetary Policy Committee (MPC) meeting that takes place every quarter, had considered hiking interest rate.
For instance, between January to July 2023, the apex bank has consistently raised the rate to 16.50%,17.50% 18.50% and 18.75% respectively .
The Central Bank of Nigeria (CBN) had before then, raised interest rate to 15% 14 % ,13% and 11.5%, respectively in the past.
Interestingly, analysts have termed the significance of this latest 18.75% rate as “a shift to a hawkish monetary policy stance.”
But this calls to question how far previous rates have helped to fight consistent inflation that presently stares us in the face at 22.79% double digits from initial 21% and 22.44% respectively.
For us, we don’t want to make a mockery of early decision that seems not to have worked for Nigeria’s economy that prides itself as a rentier of crude oil earnings.
The common man on the streets of Nigeria wants to feel the impact of these policies and see a reduction in the price of transport,bread, medication, rice, garri, beans, sugar, spaghetti and milk, just to name a few.
For us to start with, we need to demystify what constitutes Monetary Policy Rate (MPR) because a lot of Nigerians are yet to understand how the economy work from that angle.
Simply put, MPR is the interest rate at which CBN lends to commercial banks. The MPR serves as the benchmark against which other lending rates in the economy are pegged. Moreso, it is usually used as an instrument to moderate inflation in the economy.
The aspect that sounds confusing to Nigerians is the benchmark of which banks can lend money to Nigerians and most economists and financial experts find that as the intriguing part of monetary policy direction.
Conversely, it is also the part the apex bank should tread cautiously.
But we acknowledge the fact that there are diverse interests and issues putting pressure on the MPC to increase the benchmark rate despite the inflationary tendencies in the economy; especially amid the high cost of production, insecurity, dwindling government revenues, import dependency, foreign exchange volatility and the uncertainty in the global oil market.
Paradoxically also, what can monetary policy rate that focuses so much on hiking interest rate offer?
Just as we asked earlier in this piece, should interest rates be raised by the CBN at this injury time that is full with huge expectations and anxiety as well as mounting pressure on the federal government over fuel subsidy removal?
Is jerking up interest rate, not another bumpy trap for an already tense ecosystem?
Although, economist and financial experts did argue that, there is no universal rule when it comes to raising or lowering the interest rate, nevertheless, what the central bank should be interested in, is minimal stability.
And this comes with its own issues, especially for developing economies like ours with it’s own peculiar challenges, poorly managed and hugely suffering from fiscal Imbalance, government debt, corruption, and poor revenues.
Instructively, the CBN’s Acting Governor, Folashodun Adebisi Shonubi, said the hike in interest rate would help address Nigeria’s rising inflation. This is quite bold going by the latest Nigerian inflation rate standing at 22.79 per cent.
Unfortunately, Nigerians are not comfortable with the rationale behind the CBN interest rate hike, with the clear understanding that raising interest rates is not a solution to the inflation problem.
Sadly, inflationary pressure in Nigeria is fueled by rising prices of fuel, leading to
cost-push in the manufacturing sector, high cost of transportation in supply of goods and essential commodities.
Succinctly, critical look at the CBN’s decisions in hiking interest rates is for us to think through, with the anticipation that retooling interest rate to grow the economy is desirable.
As a measure to move away from a mechanism of anti-crisis monetary economic policy, that may not work well just like the previous regime of the apex bank, which aimed to attract increase in stock and bond sales on the stock markets and maintain liquidity in the financial systems.
Even though, it is currently done in developed nations, to mop up excess cash in the system, hiking interest rate in our clime could further excacerbate the country’s economic woes, such as adding to the 33 per cent unemployment rate, failed manufacturing sector, dwindling investment environment, weakening citizens’ purchasing power and income, amongst others.
We believe that the CBN means well for Nigerians, but it’s policy on the other hand, is contradictory to better the welfare of the people, particularly in closing the gap in Nigeria’s micro and macroeconomic situation, either to further boost employment, alleviate poverty and re- engineer investment.
What needs to be done? We acknowledge the current predicament is not just peculiar to us, but we are not shy in telling ourselves the truth.
First, Nigerians are interested in a stable economy that should be far away from the already torturing economic situation.
And this requires strong pro-people monetary and fiscal policies that have effect on the real economy.
Secondly, our interest rate should be adaptable to our macroeconomic development needs, tackling the energy, manufacturing and agricultural sector.
Thirdly, we emphasized the need for the nation’s reserved bank to see reasons to retool its monetary policy as a measure to improve fiscal and trade policy, that would give opportunity for sound credit not to hinder growth through credit facilities.
Lastly, we are a nation with a democratic governance system, so the Nigerian state must factor in the issues of palliative programmes beyond throwing money at the problem.
It’s time the government took these issues into account when making decisions especially as social unrest and the possibility of political risks are highly associated with high cost of living, with the labour union calling for protest; something the economy cannot take.
Given the aforementioned, what is paramount is not just hiking interest rate, but an impactful monetary policy favourable to Nigeria’s economic development.
So, CBN, it’s time we retooled interest rate to better citizens wellbeing.
July 30, 2023
CBN’s Forex Policy Results in MTN Recording N131.4bn Loss
Telecommunications giant, MTN has suffered a foreign exchange loss of N131.4 billion, dragging its profits down, its 2023 second-quarter report has revealed.
The report showed a pre-tax profit falling a whopping 64 per cent to N44.6billion. This took its half-year profits to N200.3 billion compared to N268.6 billion same period in 2022.
The Q2 report also revealed that “MTN recorded revenue of N590.6 billion, representing over 23.3 per cent year-over-year (YoY); gross profit of N393.5 billion, representing over 22.9 per cent YoY and operating profits of N214.9 billion, representing 24.3 per cent YoY.
“Pre-tax profits of N44.6 billion; forex losses of N131.4 billion; finance cost of N182 billion, representing over 259 per cent YoY; total debts of N855 billion, compared to N689.6 billion, recorded in December 2022; net assets of N258.2 billion, compared to N355.6 billion, recorded in December 2022 and working capital of N588.7 billion.”
In its reaction, MTN averred that the Central Bank of Nigeria’s recent forex policy caused a significant 60 per cent movement in the exchange rate to N756.24 per dollar by the end of June 2023.
The company believed that the liberalization of the forex system and removal of the fuel subsidy will attract foreign capital, spur foreign direct investment, and have a net positive impact on their longer-term outlook, despite the fact that the immediate impact led to unrealised currency losses for H1.
July 29, 2023
CBN Increases Interest Rate To 18.75%
The Central Bank of Nigeria’s Monetary Policy Committee has moderately hiked monetary policy rates to 18.75 per cent.
The acting Governor of the Central Bank of Nigeria, Mr Folashodun Shonubi, disclosed this on Tuesday at the press briefing at the end of the 292nd MPC meeting.
The Central Bank of Nigeria (CBN), in its last MPC meeting, tightened the economy by raising the interest rate to 18.5 per cent.
“The MPC thus resolved by majority to raise the Monetary Policy Rates. Six members voted to raise the MPR, four by 25 basis points, Two by 50 basis points, while five voted to hold the MPR constant. All members voted to narrow the acementric corridor from +100 to -700 basis points at a new level of +100 and -300 basis points around the MPR. In summary, MPC voted to raise the MPR by 25 basis points from 18.5 per cent to 18.75 per cent,” he stated.
He added that the Cash Reserve Ratio (CRR) and Liquidity Ratio (LR) remain at 32.5 per cent and 30 per cent respectively.
The decision of the MPC comes against the backdrop of the continued rise in inflation, which stood at 22.79 per cent in June.
The apex bank further explained that its intention to slightly raise the MPR is to curb further inflationary hikes.
July 25, 2023
BDCs to CBN, without US exchange rate policy will not work
BDC operators are advocating for increased participation and involvement in the foreign exchange market to ensure the success of the new exchange rate policy implemented by the Central Bank of Nigeria (CBN).
June 14, 2023, the CBN announced the unification of all segments of Nigeria’s foreign exchange market, consolidating all windows into one. This action was part of a series of immediate changes aimed at improving liquidity and stability in the Nigerian Foreign Exchange (FX) Market.
This directive, commercial banks were given permission to remove the rate cap on the naira at the Investors and Exporters (I&E) window of the foreign exchange market, allowing for a free float of the naira against the dollar and other global currencies.
The CBN’s decision to float the currency and unify the country’s multiple exchange rates has been praised by the organized private sector, financial experts, and economists.
They believe this move will bring transparency and stability to the forex market, as well as attract more foreign investment and capital inflow into the economy.
However, bureau de Change operators, also known as BDC forex dealers, have expressed dissatisfaction with the CBN’s decision to abolish segments of the official forex market in favour of the I&E window, where the “willing buyer and willing seller” approach was reintroduced
These operators argue that the CBN should collaborate with them, considering that they play a critical role in addressing the retail end of the market and ensuring exchange rate stability in the country’s economy.
The President of the Association of Bureau De Change Operators of Nigeria (ABCON), Aminu Gwadebe, stated that despite the new exchange rate policy by the CBN, the foreign exchange market remains volatile because BDCs are excluded from the I&E window.
‘’The volatility of the naira continues to underpin the slow economic growth of Nigeria. The I&E window is laudable, it’s patriotic and nationalistic, but there is no policy that can actualize its mission without carrying the interest of the subsector (which is the BDCs). The I&E window is supposed to run on three legs, the banks, the CBN and the BDCs, overtly or covertly, the BDCs are missing.’’
Gwadebe highlighted the high exchange rate disparity of about N30 between the I&E window and the parallel market, as the apex bank has yet to adequately address the retail end of the market that is primarily served by BDCs.
He emphasized that this has negatively affected liquidity in the foreign exchange market.
The ABCON President added, ‘’The forex market is not competitive because of the limited number of participants. The other one is the issue of liquidity and then legislation with respect to the FMDQ. The legislation is expected to allow participants, including the BDCs, to be part of the forex market.
We are talking about sustainability now and that market (forex market) will drive sustainability in terms of inflow to address liquidity issues. Fortunately or unfortunately, the banks are even now formalizing Bureau De Change or do I say parallel market operations.’’
Gwadebe suggested that a legal and regulatory framework for the forex market should be established to supervise and manage the market.
He called for legislation to support the existing policies and strengthen the operations of FMDQ, which manages the forex market.
Another BDC operator argued that the new exchange rate policy has not significantly affected their business, stating that it is a mixed situation.
They mentioned that foreign exchange users still patronize them since commercial banks sometimes sell at higher rates and may not have sufficient funds.
Therefore, they do not see a pressing need to be part of the I&E window since BDCs already source their funds from autonomous sources.
Overall, BDC operators are urging a more inclusive approach in the foreign exchange market and seeking legislative support to enhance liquidity, competitiveness, and sustainability in the market.

July 12, 2023
External Reserves Fall By $2.85bn In First Six Months – CBN
Nigeria’s external reserves fell by $2.85bn in the first half of 2023 due to external debt finance among other challenges, figures obtained from the Central Bank of Nigeria have revealed.
The CBN revealed in its figures on movement on foreign reserves that the reserves which commenced January 3, 2023 at $37.07bn fell to $34.22bn as of the end of June 26, 2023.
According to the CBN, the reserves fell by $3.43bn in 2022, from $40.52bn as of the end of December 31, 2021, to $37.09bn as of December 29, 2022.
At previous Monetary Policy Committee meetings, the former Governor, CBN, Godwin Emefiele, said, “The Committee, however, noted the marginal decline in the level of gross external reserves to $36.13bn in February 2023, from $36.4bn in January 2023, a decrease of 0.7 per cent, reflecting the downtrend in crude oil prices, as global uncertainties persist.
“The Committee, also, noted the moderate decline in the level of gross external reserves to $34.91bn in April 2023, from $35.14bn at end-March 2023, attributable to transactions in the foreign exchange market and largely to minuscule accretion to reserves from crude oil exports,” He said.
A member of the MPC, Adeola Adenikinju, said current and capital accounts were higher in Q3, 2022 than in Q2, 2022.
He said, “Gross external reserves fell by 0.7 per cent to $36.13bn at end-February 2022 from $36.4bn at end-January 2022. This was driven by the rise in debt service payments and foreign exchange swap transactions.
“The FGN’s net fiscal operations resulted in an expansionary fiscal deficit in February 2023 (m-o-m). The overall deficit rose by -N539.01bn in February 2023 compared to – N417.75 in January 2023.
“Both government expenditure and revenue declined. FGN Debt increased owing to new borrowings to finance the deficit in the 2022 budget and new loans by subnational governments.”
Another member of the MPC, Mike Obadan, said foreign exchange market pressures continue to pose challenges as supply-demand imbalances remained unrelenting.
“The external reserves position has remained weak against the backdrop of the limited capacity of the country to earn foreign exchange from both non-oil and oil exports,” he said.
A good handle on the oil theft and other challenges along with commencement of local refining of oil by the Dangote Refinery and Petrochemicals Company coupled with elimination of the notorious petrol subsidy regime should help to achieve stability in the foreign exchange market and exchange rate, he said.
June 30, 2023