Financial experts have commended the Federal Government for rebuilding the external reserves, the strongest level in seven years, saying the gains provide a firmer foundation for economic stability.
They noted that the improved reserve position had already helped ease pressure on the foreign exchange market, creating room for more predictable planning by businesses and investors.
Dr Ayo Teriba, Chief Executive Officer of Economic Associates, told reporters in Lagos on Wednesday that the rapid accumulation of reserves had become one of the clearest indicators of the economy’s recovery momentum.
He said the government’s ability to lift net reserves from about four billion dollars before the Tinubu administration to 29 billion dollars was a significant achievement.
According to him, gross reserves are now standing at 46.7 billion dollars.
“This improvement has brought greater stability to the foreign exchange market, boosted GDP growth and contributed to the slowdown in inflation,” Teriba said.
He urged the government to adopt policies that attract Foreign Direct Investment into public assets, explaining that such equity-based approaches would generate sustainable revenue rather than relying on commodity markets prone to global shocks.
“Brazil, Saudi Arabia and India have successfully applied this model to diversify government income and strengthen their fiscal outlook,” he added.
Also, Mr Okechukwu Unegbu, former President, Chartered Institute of Bankers of Nigeria (CIBN), also commended the government for the upward trend in external reserves.
He credited the Central Bank of Nigeria (CBN) for reforms that encouraged diaspora remittances and improved market confidence.
“The apex bank governor and his team have done well in restoring stability.
“Their policies are helping to lift the country’s foreign reserves,” he said.
Unegbu, however, advised the government to moderate its appetite for borrowing, especially for projects that do not enhance productivity.
“Loans eventually have to be serviced, and that becomes a burden on an emerging economy like ours.
“With reserves improving, government should be more cautious,” he said.
Nigeria’s foreign reserves reached 46.7 billion dollars as of November 14, the highest since 2018, according to the CBN.
Governor Olayemi Cardoso, represented by Deputy Governor (Economic Policy), Dr Muhammad Abdullahi, disclosed the figures at the 20th Anniversary of the Monetary Policy Department in Abuja.
Cardoso said the surge in reserves reflected renewed investor confidence, stronger oil receipts and improved balance-of-payments inflows.
