By Obinna Chima

Nigeria’s foreign exchange (forex) reserves have maintained positive momentum this month rising slightly for five consecutive days.

Data gathered from the Central Bank of Nigeria (CBN) website at the weekend showed that the reserves derived mainly from the proceeds of crude oil sale, climbed from $26.373 billion as at June 2, 2016, to $26.401 billion as at June 8, 2016.

The slight uptick was primarily due to a rise in crude oil prices, which climbed to $51 per barrel last week. Oil prices fell about three per cent on Friday after data showed the United States oil drilling rig count rise for a second week in row and a stronger dollar weighed on demand for greenback-denominated crude futures.
Nevertheless, Nigeria still faces macro-economic challenges, which have seen outflow of both foreign portfolio investors as well as foreign direct investments. Disruptive activities of the militant group, Niger Delta Avengers, in the oil-producing Niger Delta have sent Nigeria’s oil production to a multi-year low of 1.7 million barrels per day (mbpd). Alhough oil prices are trading above $50/barrel on the back of this, price gains will not be enough to compensate for lost output by the country.

It appears that the worst is far from over as the militant group has continued to threatened more attacks in weeks to come. Furthermore, expectations of a truce appeared to have been dashed after the Avengers stated that, contrary to news reports, it is not – and will not be – engaging in any dialogue with the government.

“By implication, funding the recently-passed N6.1 trillion budget may become something of a tall order if militant attacks persist, as Nigeria’s crude production target of 2.2mb/d is already appearing unrealistic,” analysts at CSL Stockbrokers Limited stated in a report.

Analysts at FBN Quest noted the peak in crude oil price from its recent floor in January, saying the budget assumption of $38 per barrel has started to look conservative. They predicted an end-2016 spot price for Bonny Light of $55 per barrel.

“The success of the President Muhammadu Buhari agenda rests upon whether its expansionary fiscal stance will deliver the capital spending and the jobs to make its contribution to a revival in the economy. This, in turn, requires that it comes close to hitting its ambitious targets for non-oil revenue generation.
“These are heady projections and the impact of the 2016 budget will not be felt much before the end of the year. Beyond the fiscal, the FGN would do well to clarify its policies and trumpet its successes, given the limits on the patience of voters and markets,” FBN Quest added.

They also predicted that there would be unexciting growth this year and next. Analysts at the firm also projected that a combination of government spending, sector-specific reforms and a modest rise in oil revenues should deliver unexciting growth of 3.5 per cent in 2017.

http://www.thisdaylive.com/index.php/2016/06/13/forex-reserves-gain-positive-momentum-rise-for-five-straight-days/?utm_source=twitterfeed&utm_medium=facebook

Any independent confirmation? Believe APC at your own risk and peril

NDA are working to raise the oil price and increase our reserves when the pipelines are back up and working. Thumbs up!

keally:

Any independent confirmation? Believe APC at your own risk and peril

so a news from thisday newspaper owned by a pdp goon is now a mouthpiece of apc? I am losing hope in all this irredeemable election sore losses.

if only we can stop been our own worst enemies, Nigeria will move forward.

And Naira keep on going down like sag breas.t

Jonathan must have started refunding directly into the treasury

You know that PMB had travelled to London and Jonathan was also there.

All these had happened in the last five days of PMB absence

Keneking:
Jonathan must have started refunding directly into the treasury

You are always high on Jonathan.
That name always intoxicate you, why?

Its all looking good.....

More positives this week please

.

No no no please don't spoil my day! Iam a wailer and I hate such news.

Things are still expensive

ddippset:
.

Olateef:
.

Tonnierichy:
G

eleojo23:

..

I hope whatever you guys intend to type will affect the price of tomato in the market

Hmmm

I am not a mediocre to start rejoicing or praising an ineffectual government over a 0.1%rise.

Economy is picking up.. Remaining dollars

keally:

Any independent confirmation? Believe APC at your own risk and peril

This news is inconsequential, how much is a dollar to naira.

Nigerians and mediocrity.

I take any information coming from this government like a pinch of salt, I just need to wait for only 2 weeks to see if there won't be a counter information denying the initial one. So, my legs are crossed for now!

Not significant enough.

The rise is less than 1% so nothing to write home about

$26.373 billion as at June 2, 2016, to $26.401 billion as at June 8, 2016

As far as I'm concerned this does not represent movement!

baby124:
NDA are working to raise the oil price and increase our reserves when the pipelines are back up and working. Thumbs up!

Lame talk, clap 4 urself...kudos!!!

realjoker:
so a news from thisday newspaper owned by a pdp goon is now a mouthpiece of apc? I am losing hope in all this irredeemable election sore losses.

You must really bear with them because they will never stop.

hahn:

I hope whatever you guys intend to type will affect the price of tomato in the market

This your own comment has affected the price of tomato negatively. My supplier just told me that the price just went up by 0.1%

Ok

Keneking:
Jonathan must have started refunding directly into the treasury

You know that PMB had travelled to London and Jonathan was also there.

All these had happened in the last five days of PMB absence

ZOMBIE NA ZOMBIE

NwaNimo1:
$26.373 billion as at June 2, 2016, to $26.401 billion as at June 8, 2016

As far as I'm concerned this does not represent movement!

.
Will you say it's shaking or dancing rather creeping. Anywhere we need to start asking more questions?. My own question how much tax have you ever paid to Nigeria?. Answer

Talking rubbish

What is the need when we cant access it.
It is only rising for Buhari and his cronies, so you can go and post this article to their websites.