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.

The African Development Bank (AfDB) Group has approved a $7.5 million supplemental financing grant from the Nigeria Trust Fund (NTF) to support São Tomé and Príncipe’s economic reform programme.

The AfDB, in a statement on its website, said the sum brought the total bank’s support for the initiative to about $20 million over two years.

The bank said the additional funding would close a critical financing gap in the island nation’s 2025 national budget while advancing fiscal and energy sector reforms central to its economic recovery efforts.

“Economic projections show output rising from 1.1 per cent in 2024 to 2.9 per cent in 2025 and 4.8 per cent in 2026.

” This is driven by agricultural exports, tourism rebound and infrastructure investments,” it said.

It quoted Pietro Toigo, AfDB Country Manager for São Tomé and Príncipe, as saying that the approval marked a significant step in strengthening the country’s fiscal sustainability and energy transition.

Toigo said this was important, especially following the severe economic crisis experienced in 2023.

“This approval marks an important multi-year reform path in public financial management and energy transition that helped stabilise the economy after the acute crisis in 2023.

“We are delighted at the collaboration with the Nigerian and São Tomean authorities to mobilise additional resources from the NTF to close a critical funding gap,” he said.

According to Toigo, the Fiscal Sustainability and Economic Resilience Programme is designed to address long-standing structural challenges.

He said this included chronic electricity shortages, low domestic revenue mobilisation and exposure to external shocks.

The AfDB said that São Tomé and Príncipe had implemented significant revenue measures such as the introduction of a value-added tax and the modernisation of customs processes.

Toigo said this was done through the ASYCUDA platform to increase the tax-to-Gross Domestic Product (GDP) ratio and enhance debt management.

“The programme also focuses on transforming the energy sector through improved governance of the national utility, tariff reforms to move toward cost recovery and accelerated transition to renewable energy.

“The country recently joined the Mission 300 Energy Compact initiative and approved a National Energy Compact (2025–2030) aimed at achieving universal clean-energy access.

“The supplemental financing aligns with broader support from development partners, reinforcing international confidence in the country’s reform trajectory.

“The reforms will help strengthen resilience, diversify revenue sources and create fiscal room for investment in infrastructure and human capital,” he said.

Toigo listed some of its key upcoming reform milestones to include operationalising new public procurement systems and finalising anti–money laundering frameworks.

He said others were implementing a comprehensive public financial management strategy and deploying prepaid electricity meters to enhance revenue collection.

The programme aligned with São Tomé and Príncipe’s Vision 2030 development agenda.

It also aligned with the forthcoming National Strategy for Sustainable Development 2026–2040, which aimed to reposition the economy for inclusive and sustained growth.