Nigeria’s next leader after the administration of President Muhammdu Buhari could meet only $29.1. billion in the external reserves the International Monetary Fund has forecasted, IgbereTV reports
The prediction was disclosed in its ‘Nigeria Staff Report for the 2021 Article IV Consultation’ report published on its website and obtained on Saturday.
According to IMF, the significant drop will occur in 2024 on the back of lower oil prices, restricted Eurobond market access, and higher capital outflows.
It also noted that Nigeria’s external position is weaker as external buffers are limited.
Part of the report reads: “High-interest payments relative to fiscal revenues expose Nigeria to interest rate and growth shocks.
“A downside scenario assuming lower oil prices, restricted Eurobond market access, and higher capital outflows could drop reserves to $29.1bn in 2024 with repayments to the Fund rising to 3.7 per cent of exports, 6.3 per cent of reserves, and 7.9 per cent of external debt service.”
The Washington based lender also stressed on the gaps in information on FX swaps pose a risk to this assessment, although the authorities assess these swaps to be negligible
