Dwindling oil revenue down FX inflow to $5.47bn  – CBN

Dwindling oil prices has been attributed to the decline in Nigeria’s foreign exchange inflow to $5.47billion in January 2021, the latest from the Central Bank of Nigeria (CBN) has revealed.

The figures obtained from the apex bank which placed aggregate forex into the economy at $5.47billion during the month under review indicated a 54.2 per cent decline and 67.5 per cent below its level in the preceding month and the corresponding month of 2020 respectively.

Foreign exchange outflow through the economy dipped by 22.1 per cent and 57.1 per cent to $2.97billion, from the levels of $3.81billion and $6.92billion respectively in the preceding month and the corresponding month of 2020.

This was driven, largely, by the decline in outflow through the CBN.

Consequently, the foreign exchange transactions through the economy resulted in a net inflow of $2.5billion, compared with $8.1billion and $9.9billion in the preceding month and the corresponding period of 2020 respectively.

According to the monthly economic report for January released by the CBN, the low revenue performance in January was due to the decline in non-oil receipts, following the lingering effects of the COVID-19 pandemic on business activities and the resultant shortfall in tax revenues.

The report said that total public debt outstanding of the Federal Government as of the end-September 2020, stood at N28.03trillion, with domestic and external debts accounting for 56.5 per cent and 43.5 per cent, respectively.

The report further stated that the continued spread of the COVID–19 pandemic weakened global economic recovery and led to a decline in foreign exchange inflow into the economy in the month under review.