The Nigerian economy’s heavy reliance on oil revenues has made it particularly vulnerable to international market dynamics, leading to currency depreciation and a disparity between official and parallel market exchange rates. These conditions have exerted strain on businesses and dampened investor confidence.
However, under Governor Yemi Cardoso’s leadership, the Central Bank of Nigeria (CBN) has implemented a substantial foreign exchange (forex) reforms to stabilize the Naira and enhance the flow of foreign exchange to crucial sectors. Cardoso’s administration has focused on policies that encourage non-oil exports, attract foreign capital, and ensure efficient and transparent FX allocation.
Latest data from the CBN shows that the apex bank released $21.12 billion to different sectors in 2023. The distribution of foreign exchange across these sectors reflects the Nigerian government’s emphasis on industrialization and financial services as key drivers of the economy. The allocations also highlight the importance of food security, manufacturing, and the oil industry in the nation’s economic landscape.
Here is an overview of the sectors that got the highest amount of forex from the CBN in 2023:
10. Agricultural Sector
The Agricultural Sector, with a total allocation of $338.85 million, saw its peak in December 2023, when it received $65.13 million from the CBN.
9. Educational Services
Allocated $396.40 million, the Educational Services sector had a modest year with the highest allocation of $91.45 million in January 2023.
8. Transport Sector
The Transport Sector received $417.61 million in total, showing a relatively stable allocation pattern with a slight peak in February 2023 of $81.96 million.
7. Business Services
With a total of $734.33 million, the Business Services sector had its highest allocation in December 2023, with $98.64 million.
6. Minerals
The Minerals sector had a total allocation of $742.74 million. August 2023 was a notable month for this sector, with a significant allocation of $129.65 million.
5. Oil Sector
The Oil Sector, while vital, is ranked fifth, receiving $1.03 billion in foreign exchange from the CBN. Its allocations dipped in August 2023, reflecting the sector’s volatility.
4. Manufactured Products
Garnering $2.06 billion over the year, the Manufactured Products sector received a considerable amount of foreign exchange, peaking in May 2023 with $304.12 million.
3. Food Products
The Food Products sector was allocated a total of $2.13 billion. March 2023 saw the highest allocation for this sector with $268.35 million, indicative of a strong first quarter.
2. Financial Services
With a total allocation of $4.96 billion, the Financial Services sector stood at second place. It peaked in March 2023 with an allocation of $914.47 million and remained relatively consistent throughout the rest of the year.
1. Industrial Sector
This sector received the highest allocation with a total of $7.55 billion throughout 2023. January, March, and May 2023 were particularly strong months, with the sector receiving $974.77 million, $951.69 million, and $872.83 million, respectively.
