Economists have commended the Central Bank of Nigeria (CBN) for raising the country’s external reserves to $ 54.08 billion.

Speaking in separate interviews in Lagos on Sunday, they said the increase would strengthen the naira and boost investor confidence in the economy.

Prof. Sherifdeen Tella of the Department of Economics,  Babcock University, lauded the apex bank for sustaining the growth in reserves.

“The (CBN) management should be commended for sustaining the increase in reserves because it will improve the value of the domestic currency.

“This will enhance the purchasing power of an average Nigerian and boost our balance of payments,” Mr Tella said.

He noted that reforms in the foreign exchange market partly contributed to the rise in foreign investment inflows.

“Many investors are now willing to bring their money into our economy because they realise that repatriating it will not be a challenge.

“These reforms have engendered investor confidence and improved the country’s rating internationally amid shocks,” he added.

Also speaking, Prof. Ndubisi Nwokoma of the Department of Economics, Caleb University, acknowledged the government’s efforts to raise reserves.

“The robust reserves will stabilise the currency and facilitate foreign trade. It will also extend the country’s import cover and help curb imported inflation,” Mr Nwokoma added.

He emphasised that diaspora remittances were crucial to the growth in external reserves.

“Currently, our country receives the second-largest diaspora remittances in Africa after Egypt.

“This has helped shore up the reserves, thanks to Nigerians abroad who send money through various International Money Transfer Organisation (IMTO) channels,” Mr Nwokoma said.

He urged the government, however, to address economic hardships affecting people at the grassroots.

“The government should fund agricultural programmes more to empower people at the grassroots.

“This will enable the micro-level, which forms the bulk of society, to be empowered. The impact should flow from the bottom up, not the other way round,” Mr Nwokoma said.

Recall that Nigeria’s external reserves have climbed to $54.08 billion, their highest level since 2008.

Data from the CBN showed reserves hit $54.084 billion on September 3, up $1.42 billion from $52.66 billion on August 19.

The gain extends a sustained build-up in external assets. Since January 2, reserves have risen by $8.52 billion, or 18.7 per cent, to $53.55 billion.

Liquid reserves stood at $53.55 billion, indicating that the bulk of Nigeria’s external reserves are readily available for conversion to cash to meet foreign exchange and external payment obligations.

(NAN)