Nigeria’s $40bn net FX Reserves Validate Tinubu’s Economic Reforms — Group
A political group, Tinubu Stakeholders Forum (TSF), says the rise in Nigeria’s net foreign reserves from about three billion dollars in 2023 to more than 40 billion dollars is encouraging.
The Chairman of TSF, Ahmad Sajoh, and the Secretary, Danjuma Sada, said this in a statement jointly signed on Monday in Abuja.
Both officials described the situation as compelling evidence that President Bola Tinubu’s economic reforms were restoring confidence in the Nigerian economy and strengthening its long-term resilience.
According to them, the achievement reflects one of the most significant improvements in Nigeria’s external financial position in recent history.
They said that the growth in net foreign reserves demonstrated the success of key reforms undertaken since 2023.
They listed the reforms as including the unification of the foreign exchange market, greater transparency in FX management, tighter monetary policy coordination, and measures that had restored investor confidence.
“Unlike gross external reserves, which include liabilities and other obligations, net foreign reserves represent the foreign exchange resources that are readily available to support the economy.
“The increase from about three billion dollars to more than 40 billion dollars within three years, therefore, represents a substantial strengthening of Nigeria’s financial buffers,” they said.
They said that a stronger reserve position had far-reaching implications for the economy.
“It enhances Nigeria’s ability to meet its external obligations, finance critical imports, cushion the economy against global shocks and reduce reliance on expensive short-term external financing.
“It also strengthens confidence in the Naira and provides greater support for a stable and well-functioning foreign exchange market.
“These are stronger external buffers which improve the availability of foreign exchange for manufacturers, investors and businesses that depend on imported machinery, industrial inputs and raw materials.
“As exchange-rate stability improves, businesses are better able to plan, production costs become more predictable and inflationary pressures arising from exchange-rate volatility are moderated,” they said.
They said that a healthier external position also sent a strong signal to international investors that Nigeria was becoming a more credible and stable investment destination.
According to them, it reinforces recent improvements in foreign direct investment, portfolio inflows and sovereign credit assessments, creating conditions for increased production, job creation and sustained economic growth.
“The transformation of Nigeria’s net foreign reserves from approximately three billion dollars to more than 40 billion dollars is not merely a financial statistic.
“It reflects the growing credibility of Nigeria’s economic management and the success of reforms that prioritise transparency, market confidence and macroeconomic stability.
“Mr President took difficult but necessary decisions at a time when the economy required fundamental correction.
“Three years later, the strengthening of Nigeria’s external reserves stands as tangible evidence that those reforms are producing measurable results,” they said.
They commended Tinubu and the leadership of the Central Bank of Nigeria (CBN) for maintaining the reform momentum despite initial challenges.
They urged the government to sustain policies that promote exports, deepen domestic production, attract long-term investment, and preserve macroeconomic stability to consolidate the gains already achieved. #Nigeria’s $40bn net FX Reserves Validate Tinubu’s Economic Reforms — Group#
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