The upbeat recorded in the nation’s external reserves have continued into the month of February as the reserves recorded $2.34bn in six weeks.

Data obtained from the Central Bank of Nigeria’s website on Friday showed that the reserves rose to $46.68bn as at February 14, from $44.34bn recorded on January 2, representing an increase of five per cent.

It was gathered that the performance of the reserves, which was derived majorly from the proceeds of crude oil sale, was largely influenced by the appreciation of crude oil prices.

Analysts at FSDH Merchant Bank Limited, in a report made available to our correspondent, said the collaboration between the Federal Government and the CBN to improve the external reserves position had continued to yield positive results.

The report stated, “Also, the favourable oil prices at the international market, improved domestic output, fiscal prudence, improved ratings from agencies and the inclusion of FGN Bonds in the JP Morgan Emerging Market Government Bond Index have all contributed to the improvement in the external reserves position of the country.

“The current external reserve can support stable exchange rate in Nigeria. The current level of external reserve is higher than both the International Monetary Fund and FSDH Research projections. The reserve is sufficient to cover over 11 months of imports of goods and services, higher than the threshold of three months.”

However, the Federal Government failed to raise the external reserves to $50bn by the end of 2012 as against its target.

The country’s reserves had closed the year at $44.26bn on December 24, 2012.

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

Although the reserves rose by $11.34bn, representing 34 per cent in 2012, from $32.92bn in 2011, it failed to meet the Minister of Finance, Dr. 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.

Okonjo-Iweala, at a meeting with the Organised Private Sector in Lagos, stressed the need for the country to shore up its external reserves, saying, there was the need to build up the reserves to $50bn before December.

She pointed out that this would help the country to stand on its feet in the event of any global economic recession.

Source: Punch (By Ademola Alawiye)