Increase in global oil has spurred Nigeria’s external reserves to $35 billion marks, the highest in the last three years.
According to data from the website of the Central Bank of Nigeria (CBN), external reserves of the country rose by $1.37 billion in October 2017. An improvement which is 100 percent of what was achieved ($660 million) in September 2017.
Increase in foreign exchange inflow from earnings from crude oil exports. From a low price of $46.39 barrel in February 2017, it hit a value of %59.11 barrel as at last week. With an output volume of 2.1 million per day, the country now has a potentials earnings of about $124 million daily.
However, Kemi Adeosun, Nigeria’s Minister of Finance, gave a contrary narration by stating that Nigeria is not an oil economy. She enjoined Nigerians to consider changing this perception.
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In the article titled: ‘All Change: Nigeria is Not An Oil Economy,’ Adeosun said the administration is looking at developing other real sectors of the economy. More so, they are working towards dropping the tag on oil countries.
“By its nature, tax mobilisation risks the popularity of any government, but the present administration understands that the short-term lure of political expediency must give way to the long-term best interests of Africa’s largest economy.”
According to her, descriptions of Nigeria’s economy often include such phrases as ‘Africa’s largest oil producer’ and ‘the oil-rich African nation.’
“With oil at just 10 percent of GDP, Nigeria simply does not fit into the mould of the traditional oil economies.”
The country’s finance shows Nigeria may never be able to do without oil for now.