WATCH THE VIDEO HERE Nigeria’s foreign exchange (FX) reserves have recorded an increase of $591.78 million in the month following the government’s $2.2 billion Eurobond auction on December 2, 2024. The reserves rose from $40.292 billion on December 2 to $40.884 billion on January 3, 2025, reflecting a month-on-month growth of 1.47%. This growth highlights the effectiveness of the country’s strategic measures in stabilizing its foreign exchange position amid mounting external and internal challenges. The proceeds from the Eurobond auction likely served as a vital financial cushion, helping to bolster the nation’s external reserves during a critical period. Nigeria raised $2.2 billion through its Eurobond auction in December last year, marking a pivotal moment in the country’s ongoing efforts to address its growing fiscal deficit. This auction, which saw the issuance of two bonds with varying tenors, follows the government’s return to the international capital markets for the first time since March 2022. The funds raised will primarily be used to support Nigeria’s 2024 budget, which is under strain due to persistent revenue shortfalls and mounting public spending. Expanding non-oil exports and promoting foreign direct investment will be key strategies in this regard. Also, fiscal discipline will be essential to ensure that funds raised from external borrowings are used efficiently. Investments in critical infrastructure and economic development projects will help boost productivity and create a more resilient economy.
Nigeria’s FX reserves surge by $591.78m one month after Eurobond auction
