Some economists commended the Central Bank of Nigeria (CBN) for growing the country’s external reserves to $55.24 billion, saying the increase is key to boosting investor confidence.
They, however, stressed the need for more emphasis on export-led growth to strengthen the economy and improve the living standards of Nigerians.
The economists spoke in separate interviews in Lagos on Tuesday.
President of the Institute of Professional Economists and Policy Management, Ken Ife, lauded the CBN for raising the reserves to that level.
He stressed that the government should focus more on an export-led growth strategy to improve the living standards of the people.
“Now that our currency has depreciated due to government reforms, more emphasis should be placed on exportation.
“The government should put structures in place to process its natural resources and 44 solid minerals before exporting them to the global market to earn premium value.
“This is what many of the oriental countries did to lift their people out of poverty and boost their economies,” Mr Ife said.
He emphasised that the government should be more innovative in addressing the security challenges hindering investment inflows.
Also speaking, Sherifdeen Tella of the Department of Economics, Babcock University, acknowledged the sustenance of the reserves at that
“The apex bank should be commended because this volume will engender investor confidence and ensure seamless repatriation of funds.
“However, in spite of the increase in reserves, there has not really been an appreciation of the domestic currency,” Mr Tella said.
He stressed that foreign reserves are pivotal in moderating imported inflation and positioning the government better to access loans.
“This volume of external reserves puts the government in good standing to demand loans from global development partners,” he said.
An economic researcher at BAA Consult, Benjamin Akinsoto, also praised the CBN for increasing the reserves.
“The surge in foreign reserves has continued to engender confidence, leading to more Foreign Portfolio Investment inflows into our market.
“Coupled with oil receipts from the windfall, this has contributed to the increase, leading JP Morgan merchant bank to commence operations on our shores,” Mr Akinsoto said.
He noted that the reserves were crucial in ensuring the country’s foreign exchange stability.
He added that it enabled the government to meet its international financial obligations and increased the country’s importation cover to over 15 months.
He said this was imperative to effectively facilitate international trade and improve the country’s credit rating.
Nigeria’s foreign reserves recorded a slight decline for two consecutive days, falling to $55.24 billion on October 29.
Data from the CBN showed that the country’s external reserves declined on October 28 and October 29 to $55.26 billion and $55.24 billion, respectively.
This means Nigeria’s foreign reserves shed $20 million over the two days, according to data from the apex bank.
Further analysis of the apex bank’s data showed that the country’s foreign reserves gained $60 million during the period under review, in spite of the two-day decline. 

(NAN)