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MASSIVE DROP: Nigeria’s Net Foreign Assets plunges by 91% in September, according to latest CBN data



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Nigeria’s Net Foreign Assets (NFA) plummeted by 91.7%, settling at N591 billion, as revealed by the Central Bank of Nigeria’s (CBN) most recent monetary statistics.

This sharp decline follows a fluctuating trend that began in June 2023.

At that time, Nigeria’s NFA rose to N11 trillion, up from N4.9 trillion, but subsequently dwindled to N9.2 trillion, N7.1 trillion, and finally to N591 billion between July, August, and September, respectively.

Net foreign assets essentially serve as a balance sheet entry for a nation’s central bank, reflecting the value of the country’s foreign holdings comprising foreign currency, bonds, and equities against its foreign liabilities.

The recent data indicates that Nigeria’s foreign liabilities may have surged in September, potentially due to changes in how the CBN accounts for the nation’s foreign currency holdings

A recent research report on the blog of ThePressNG contributor Walle Smith suggests the drop may have been due to a consolidation in foreign liabilities.

It is important to note that the central bank has yet to explain why the money supply dropped in such a drastic manner.

The staggering drop in Nigeria’s NFA from N7.1 trillion in August to N591 billion in September raises serious concerns and necessitates an investigation into the underlying factors.