A political group, the Tinubu Stakeholders Forum (TSF), has described the rise in Nigeria’s net foreign reserves from about $3 billion in 2023 to more than $40 billion as encouraging.

The chairman of TSF, Ahmad Sajoh and the secretary, Danjuma Sada, said this in a statement jointly signed on Monday in Abuja.

The group described the situation as compelling evidence that the economic reforms introduced by President Bola Tinubu were restoring confidence in the Nigerian economy and strengthening its long-term resilience.

According to the group, the achievement reflects one of the most significant improvements in Nigeria’s external financial position in recent history.

It noted that the growth in net foreign reserves demonstrated the success of key reforms undertaken since 2023.

The group listed the reforms to include 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 $3 billion to more than $40 billion within three years, therefore, represents a substantial strengthening of Nigeria’s financial buffers,” the group said.

It stated 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 that 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 group said.

It added 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 the group, 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,” it said.

The group commended Mr Tinubu and the leadership of the Central Bank of Nigeria (CBN) for maintaining the reform momentum despite initial challenges.

The group 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. 

(NAN)