According to the Central Bank of Nigeria, (CBN) the nationís foreign exchange reserves fell by 4.9 per cent to $29.79bn on March 30, from $31.35bn in February.

The data showed that year-on-year, the reserves fell by 21.3 per cent from $37.83bn in March 2014 to stand at the new balance of $29.79bn on Monday.

The external reserves have continued to drop at a faster pace due to low demand for the nationís crude oil and its falling prices globally.

Nigeria derives 70 per cent of its revenue and 90 per cent of its foreign exchange from crude oil.

The central bank has been using the reserves to support the ailing naira, which has been hammered by the falling global oil prices and uncertainty over the just concluded presidential elections.

Experts linked the huge drop in the stock of external reserves to political spending, falling oil prices, which have put pressure on the local currency, and speculative demand for the dollar by foreign exchange dealers.