Data from the Central Bank of Nigeria (CBN) shows that at the end of the first half of 2022 (H1 2022), Nigeria’s external reserves stood at US$39.16 billion.3 This indicates th at the external reserves grew by 1.8 percent from US$38.48 billion at the beginning of the month (June 1). At mid-year, the external reserve is 3.3 percent lower than the US$40.52 billion recorded at the beginning of the year (Ja n uary 2022). The half-year decline in the external reserves despite rising oil prices is partly due to low crude oil production and CBN intervention in the foreign exchange market. To increase external reserves, the government needs to implement reforms that would increase non-oil exporting firms’ productivity and competitiveness in the international market. Thus, increasing export earnings. With increased export earnings, the need for the CBN to intervene in the foreign exchange market to stabilise the domestic currency would be minimal.