CBN Blames Falling Naira On Nigerians’ Import Dependency

She also urged Nigerians to adopt the CBN’s cashless strategy to decrease risk and improve transaction seamlessness, noting that the bank was dedicated to ensuring payment innovation for a better customer experience.

What you should know

• Nigeria’s capital inflows plummeted to a four-year low of $9.66 billion in 2020, only to drop further to $6.7 billion in 2021.
• International trade remained a major concern as Nigeria progressed with historical trade depict. Nigeria’s international trade balance for 2021 has dropped to a deficit of N1.94 trillion, the largest on record.
• Nigeria continues to be affected by the repercussions. Nigeria’s exports climbed by 51% to N18.91 trillion in 2021, up from N12.52 trillion the year before. The increase in export profits, however, was not enough to offset the 64.1% increase in import bills, which totalled N20.84 trillion.
• As a result of the FX Outflows, a $5.26 billion negative balance of payment was made in 2021, putting even more pressure on the local currency and necessitating the use of the external reserve.
• In 2021, the CBN reported that it has so far disbursed the sum of N864 billion to 4.1 million farmers cultivating 5.02 million hectares of land under its Anchor Borrowers’ Programme (ABP).