Nigeria's $40bn Net Foreign Reserves Signal Success of Tinubu's Economic Reforms – TSF

TSF: Nigeria's $40bn Net Foreign Reserves Reflect Success of Tinubu's Economic Reforms

The Tinubu Stakeholders Forum (TSF) has described the increase in Nigeria's net foreign reserves from about $3 billion in 2023 to over $40 billion within three years as strong evidence that the economic reforms introduced by President Bola Ahmed Tinubu are restoring confidence in the economy and reinforcing its long-term resilience.

In a statement jointly signed by its Chairman, Ahmad Sajoh, and Secretary, Danjuma Sada, the Forum said the milestone represents one of the most significant improvements in Nigeria's external financial position in recent history.

According to TSF, the sharp rise in net foreign reserves reflects the positive impact of key reforms implemented since 2023, including the unification of the foreign exchange market, enhanced transparency in foreign exchange management, improved coordination of monetary policy, and measures aimed at restoring investor confidence.

The statement explained that, unlike gross external reserves—which include liabilities and other obligations—net foreign reserves represent 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 represents a substantial strengthening of Nigeria's financial buffers," the Forum stated.

TSF noted that the stronger reserve position has significant implications for the country's economic stability.

"It enhances Nigeria's capacity to meet its external obligations, finance critical imports, cushion the economy against global shocks, and reduce dependence on costly 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 stronger external buffers improve the availability of foreign exchange for manufacturers, investors, and businesses that rely on imported machinery, industrial inputs, and raw materials. As exchange-rate stability improves, businesses can plan more effectively, production costs become more predictable, and inflationary pressures arising from exchange-rate volatility are moderated," the statement added.

The Forum further observed that the healthier external reserve position sends a positive signal to international investors, reinforcing Nigeria's credibility as a stable and attractive investment destination.

According to TSF, the improved reserve position complements recent gains in foreign direct investment, portfolio inflows, and sovereign credit assessments, creating a more favourable environment 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 more than a financial statistic. It reflects the growing credibility of Nigeria's economic management and the success of reforms anchored on 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 delivering measurable results," the statement said.

The Forum commended President Tinubu and the leadership of the Central Bank of Nigeria for sustaining the reform agenda despite initial challenges and urged the Federal Government to maintain policies that promote exports, expand domestic production, attract long-term investment, and preserve macroeconomic stability to consolidate the gains already achieved.