TSF: Nigeria’s $40bn Net Foreign Reserves Reflect Tinubu’s Economic Reforms
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TSF: Nigeria’s $40bn Net Foreign Reserves Reflect Tinubu’s Economic Reforms
By Alabidun Shuaib AbdulRahman
The Tinubu Stakeholders Forum, TSF has said the increase in Nigeria’s net foreign reserves from about $3bn in 2023 to over $40bn within three years validates the economic reforms introduced by President Bola Tinubu, describing the development as a major boost to the country’s financial stability.
The group said the growth in the reserves reflected renewed investor confidence and a significant improvement in Nigeria’s external financial position.
In a statement signed by its Chairman, Ahmad Sajoh, and Secretary, Danjuma Sada, the forum attributed the increase to key policy reforms implemented since 2023, including the unification of the foreign exchange market, improved transparency in foreign exchange management, stronger monetary policy coordination and measures aimed at restoring market confidence.
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It explained that unlike gross external reserves, which include liabilities and other financial obligations, net foreign reserves represent foreign exchange resources that are readily available to support the economy.
According to the forum, the increase from about $3bn to over $40bn within three years marks one of the most significant improvements in Nigeria’s external financial buffers in recent history.
The statement said the stronger reserve position would enhance the country’s ability to meet external obligations, finance critical imports, absorb global economic shocks and reduce dependence on costly short-term external borrowing.
It added that the development would also strengthen confidence in the naira and support a more stable and efficient foreign exchange market.
The forum noted that improved external reserves would increase the availability of foreign exchange for manufacturers, investors and businesses that rely on imported machinery, industrial inputs and raw materials.
It further stated that greater exchange-rate stability would enable businesses to plan more effectively, make production costs more predictable and ease inflationary pressures associated with currency volatility.
The group also argued that the healthier external position sends a positive signal to international investors, reinforcing recent improvements in foreign direct investment, portfolio inflows and sovereign credit assessments.
According to the statement, the development creates a more favourable environment for increased production, job creation and sustainable economic growth.
“The transformation of Nigeria’s net foreign reserves from approximately $3bn to over $40bn 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,” the forum stated.
It added that President Tinubu took difficult but necessary decisions when the economy required fundamental reforms, stressing that the current reserve position demonstrates that those policies are yielding measurable results.
The forum commended President Tinubu and the leadership of the Central Bank of Nigeria, CBN for sustaining the reform agenda despite initial challenges and urged the Federal Government to continue implementing policies that promote exports, deepen domestic production, attract long-term investment and preserve macroeconomic stability.
