Nigeria’s external reserves fell to $33.9 billion on Wednesday, the lowest level in two years.

The last time the external reserve touched this level was in July/August 2021.

The country’s external reserve position has been on a downward trend in the last few months as demand pressure for forex spiked amidst lower forex earnings.

This is despite the introduction of the revised I&E Window on the 14th of July, 2023.

The external reserve was $35 billion when President Tinubu was sworn in and $34.6 billion on July 13th, the eve of the changes to the forex policy.

However, a lack of forex supply amidst foreign investment apathy appears to have exacerbated the decline in external reserves.

Nigeria has been struggling with lower foreign exchange earnings over a reduction in crude oil revenues.

In addition, a lack of foreign investor inflow due to lower interest rates has also been a drawback in the federal government’s quest to reverse the trend.