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The amount Nigeria’s central bank lost on the settlement of overdue derivatives contracts last year.
That was more than double the amount in 2023 as the Abuja-based bank tried to “reduce outstanding foreign exchange liabilities” and restore investor confidence, Bloomberg reported.
The derivatives settlement is part of a broader set of policies implemented since President Bola Tinubu took office in May 2023, which include ending a costly fuel subsidy and allowing the naira to float against the dollar.
The policy overhaul is an attempt to boost the country’s foreign reserves and attract investors.
However, the naira has lost more than 70% of its value against the dollar since Tinubu took office. And with crude oil sales accounting for about 90% of Nigeria’s foreign exchange earnings, falling oil prices pose a threat to the country’s 2025 budget.
