NIGERIA'S RESERVES DROP BELOW $44bn.

The foreign reserve of Nigeria finally dropped to $44.89bn by Thursday September 20 after hitting a well celebrated recent $47bn plus up to August 6.

According to figures obtained from the Central Bank the reserves continued to drop and in fact declined into the $44bn range on Wednesday September 19 as it ended at $44.944bn.

That means that in 3 days between 18th and 20th September. It declined $112m  and in the less than two months since it last touched $47bn (August 3), it went down by $2.179bn or 4.63%.

It had dropped to $46.868bn by August 24 2018 and so decreased by $1.2bn or 2.6% in less than one month.

In other words, Nigeria's foreign reserve is not only dropping daily, the rate of decline is also growing.

Just like the proverbial tough to build up but so easy to drain or tear down.

Meanwhile the part of the reserve that is untouchable, which had also continued to decline, picked up after touching $709.13m September 18, to $710.119m the next day before ending 20th September at $711.388m or 1.58% of total reserves.

Apart the usual outflow for imports and capital outflow, one move that must have helped to put pressure on the nation's reserve position recently was the now postponed new national airline project.

Millions of dollars had been expended on viability, project planning and the publicity blitz around the logo design and negotiations for take off airlines.

And it does not seem like it's postponement will put an end to this new drain because, according to the President, there are more bills or obligations to honour on the project and Nigeria intends to honour them.

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