• Login
  • Register
Nairametrics
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
    • Economy
    • Nairalytics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Company Results
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Sectors
    • Agriculture
    • Aviation
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Health
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Renewables & Sustainability
    • Tech News
  • Business News
    • Budget
    • Public Debt
    • Funds Management
    • Tax
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
    • Research Analysis
  • Recapitalization
    • Access Holdings Offer
    • Fidelity Bank Offer
    • GTCO Offer
    • Zenith Bank Offer
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
    • Economy
    • Nairalytics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Company Results
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Sectors
    • Agriculture
    • Aviation
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Health
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Renewables & Sustainability
    • Tech News
  • Business News
    • Budget
    • Public Debt
    • Funds Management
    • Tax
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
    • Research Analysis
  • Recapitalization
    • Access Holdings Offer
    • Fidelity Bank Offer
    • GTCO Offer
    • Zenith Bank Offer
Nairametrics
No Result
View All Result
Home Economy GDP

Oil price surge to boost Nigeria’s foreign reserve by almost $3 billion – Fitch

Says higher oil prices would also boost the subsidy cost.

Ubah Jeremiah Ifeanyi by Ubah Jeremiah Ifeanyi
March 15, 2022
in GDP, Macros, Monetary Policy
Oil price surge to boost Nigeria’s foreign reserve by almost $3 billion – Fitch
Share on FacebookShare on TwitterShare on Linkedin

Fitch Ratings has projected that Nigeria’s foreign reserves would increase to $43 billion in 2022, up from $40.5 billion at the end of  2021, indicative of an uptick of almost $3 billion.

This was disclosed in its latest report released on Monday, March 14, titled ‘Fitch affirms Nigeria at ‘B’; Outlook stable.’

Fitch Ratings has maintained Nigeria’s Long-Term Foreign-Currency Issuer Default Rating (IDR) at ‘B’ with a Stable Outlook, as it did a year ago.

RelatedStories

Nigeria’s weak external reserves are a concern – Fitch Ratings

Fitch: Bank loans to government, high CRR put Nigerian Banks at risk 

June 20, 2025
Latest crude oil price drop threatens Nigeria’s revenue and naira stability 

Crude Oil rallies past the FG Benchmark after Israel’s missile attacks on Iran

June 13, 2025

The ‘B’ rating could be categorized as being in the non-investment-grade category when compared with the investment-grade category of ‘BBB’ to ‘AAA’. However, the ‘B’ may be seen to have a stable outlook as it is rated above the ‘CCC’ to ‘D’ (default).

Fitch stated that Nigeria has a low World Bank Governance Indicator (WBGI) ranking at 16.4, reflecting weak institutional capacity, uneven application of the rule of law and a high level of corruption.

What you should know

  • Nigeria’s foreign reserve dropped to $39.86 billion as of the end of February 2022, representing a 0.44% decline compared to $40.04 billion recorded as of the previous month.
  • According to data from the CBN statistical bulletin for Q3 2021, the apex bank supplied a sum of $8.97 billion in the FX market through the I&E, SME, and invisible.
  • Also, the CBN supplied $1.42 billion through interbank, while $2.77 billion was channelled through BDC operators between January and June 2021, before the bank discontinued the sales of FX to them.
  • The Organization of Petroleum Exporting Countries (OPEC+) increased Nigeria’s production quota to 1.72 million bpd for March 2022 from 1.7 million bpd and 1.68 million bpd in February and January respectively, despite being unable to meet previous targets.

This brings to question the capacity for Nigeria to enjoy the benefits of a surging price.

What Fitch is saying

Fitch attributed the projected improved external liquidity to the surge in oil prices. The report said, “Nigeria’s gross international reserves have been bolstered by higher oil export receipts, which will continue in 2022. We forecast reserves to increase to USD43 billion in 2022, up from USD40.5 billion at end-2021.”

According to the report, oil exports and remittance inflows combined to help restore the current account (CA) into balance in 2021, following a deficit of 4.2 percent of GDP in 2020.

“Our baseline assumption is for the CA balance to remain broadly unchanged in 2022, but sustained higher oil prices at their present level of USD112 per barrel could widen the 2022 current account surplus to 4% of GDP, with upside to Nigeria’s international reserves,” the report said.

Fitch also mentioned the disruption caused by fuel subsidies on Nigeria’s Fiscal Balance. “In January 2022, the government reversed a plan to phase out the implicit fuel subsidies that support price controls on petroleum. This has necessitated an adjusted federal government budget for 2022 with a deficit target that is 0.6% of GDP wider than the original target, due to the subsidies (with an additional equal hit to the other levels of government),” it said.

It added, “Higher oil prices would also boost the subsidy cost, denting the benefit of higher global oil prices to the budget. We forecast the 2022 general government fiscal deficit to remain broadly unchanged from 4.1% of GDP in 2021. However, we estimate that an USD10 per barrel increase would narrow the fiscal deficit by 0.5% of GDP.”


Follow us for Breaking News and Market Intelligence.
Tags: Fitch RatingsNigeria Foreign reservesoil prices
Ubah Jeremiah Ifeanyi

Ubah Jeremiah Ifeanyi

For further inquiries about this article, contact: Email: Ifeanyi.ubah@nairametrics.com Twitter: @ubahjc Linkedln: Jeremiah Ubah

Related Posts

Nigeria’s weak external reserves are a concern – Fitch Ratings
Financial Services

Fitch: Bank loans to government, high CRR put Nigerian Banks at risk 

June 20, 2025
Latest crude oil price drop threatens Nigeria’s revenue and naira stability 
Energy

Crude Oil rallies past the FG Benchmark after Israel’s missile attacks on Iran

June 13, 2025
Wema bank
Financial Services

Fitch upgrades Wema Bank’s National Rating to A–(nga), outlook raised to positive 

June 13, 2025
AfreximBank approves $200 million finance facility to BUA Group for expansion projects 
Financial Services

Afreximbank disputes Fitch’s negative outlook, defends financial position in Africa 

June 10, 2025
Africa’s credit rating agency to launch in September as alternative to Fitch, Moody’s 
Economy

Africa’s credit rating agency to launch in September as alternative to Fitch, Moody’s 

June 9, 2025
Adverse effects of high-interest rate spreads on the Nigerian economy
Companies

Fitch upgrades Fidelity Bank’s National Rating to ‘A+(nga)’, affirms long-term IDR at ‘B’

May 30, 2025
Next Post
Lagos orders investigation on sharing of petrol as souvenir at a party 

Lagos police arrests, arraigns prime suspect sharing petrol as souvenir at party on 4-count charges

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

first bank








DUNS

Recent News

  • Alleged $12 Million Money Laundering: EFCC Witness testifies against SunTrust Bank MD, Executive Director 
  • Three cement giants and FIRSTHOLDCO spark rally as ASI shatters 130,000 on the Nigerian stock market 
  • FG to host International Air Show in Abuja in December 

Follow us on social media:

Recent News

Federal High Court, ,

Alleged $12 Million Money Laundering: EFCC Witness testifies against SunTrust Bank MD, Executive Director 

July 17, 2025
Weekly Stock Update: Nigerian Exchange Group record growth w-o-w, up by 0.48%

Three cement giants and FIRSTHOLDCO spark rally as ASI shatters 130,000 on the Nigerian stock market 

July 17, 2025
  • iOS App
  • Android App
  • Contact Us
  • Home
  • Markets
  • Sectors
  • Economy
  • Business News
  • Financial Literacy
  • Disclaimer
  • Ads Disclaimer
  • Copyright Infringement

© 2025 Nairametrics

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
Social Media Auto Publish Powered By : XYZScripts.com
No Result
View All Result
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
    • Economy
    • Nairalytics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Company Results
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Sectors
    • Agriculture
    • Aviation
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Health
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Renewables & Sustainability
    • Tech News
  • Business News
    • Budget
    • Public Debt
    • Funds Management
    • Tax
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
    • Research Analysis
  • Recapitalization
    • Access Holdings Offer
    • Fidelity Bank Offer
    • GTCO Offer
    • Zenith Bank Offer
  • Login
  • Sign Up

© 2025 Nairametrics