Published 2025-05-01
Abstract
This study empirically examined the external reserves management in Nigeria. Secondary data on the total external reserve accumulation were collected for the period of 1989-2008 and descriptive statistical analytical tools were employed to achieve the objectives of the study. The study revealed that Nigerian external reserves for the period under investigation have been fluctuating. These fluctuations are subject to factors such as expenditure profile of the government, foreign receipts and most importantly international oil market to mention a few influenced the external reserve buildup over the years. The study stressed the need for considerable stability in price in international markets and exchange rates, disciplined fiscal expenditure by government in other to ensure proper management of external reserve in Nigeria. The study therefore recommended massive diversification of the economy so as to reduce the dependence on oil and the huge resources put in the foreign reserve be judiciously used for infrastructural development and provision of basic needs for the citizenry