External reserves stagnant at N48bn

External reserves have remained stagnant at N48bn for over three months; an investigation by our correspondent has shown.

It was learnt that the swing in the external reserves was as a result of the volatility in crude oil prices.

The reserves, which stood at $48.47bn during the week, hit the N48bn mark on March 11, 2013. And since then, they have been up and down within the mark.

According to financial analysts, the domestic oil output has been negatively affected by several disruptions such as pipeline vandalism, bunkering and force majeure.

The external reserves, which rose steadily since last year due to reasonably high oil prices and stability in the foreign exchange market, however, started dropping in April.

Contrary to the Federal Government’s plan to raise the country’s external reserves to $50bn by end of last year, the reserves closed 2012 at $44.26bn as at December 24.

Figures obtained from the CBN showed that the reserves closed the year $6bn below the Federal Government’s $50bn target.

Although the reserves rose by $11.34bn, representing a 34 per cent increase in 2012 from $32.92bn in 2011, it failed to meet the Minister of Finance, Ngozi Okonjo Iweala’s desired goal.

The minister had said in July last year that the Federal Government had set a target of $50bn external reserves by the end of 2012 from the July figure of $36.37bn.