The Tinubu Stakeholders Forum (TSF) has described the rise in Nigeria’s net foreign reserves from about $3 billion in 2023 to over $40 billion in 3 years as compelling evidence that the economic reforms introduced by President Bola Ahmed Tinubu are restoring confidence in the Nigerian economy and strengthening its long-term resilience.
The Forum said in a statement by its Chairman Ahmad Sajoh and Secretary Danjuma Sada that the achievement reflects one of the most significant improvements in Nigeria’s external financial position in recent history.
According to TSF, the growth in net foreign reserves demonstrates the success of key reforms undertaken since 2023, including the unification of the foreign exchange market, greater transparency in FX management, tighter monetary policy coordination and measures that have restored investor confidence.
- Advertisement -
It said: “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.
“So the increase from about $3 billion to more than $40 billion within three years therefore represents a substantial strengthening of Nigeria’s financial buffers.”
The Forum said a stronger reserve position has 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,” the statement added.
The Forum noted that a healthier external position also sends a strong signal to international investors that Nigeria is becoming a more credible and stable investment destination.
This 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 `$3 billion to over $40 billion 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.
“President Tinubu 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,” it said.
The Forum commended President Tinubu and the leadership of the Central Bank of Nigeria for maintaining the reform momentum despite initial challenges and 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.
