TSF hails Tinubu as Nigeria’s net Foreign Reserves rise above $40bn

The transformation of Nigeria’s net foreign reserves from approximately $3 billion to over $40 billion is not merely a financial statistic

By Moses Okorie

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 nation’s economy and strengthening its long-term resilience.

In a statement jointly signed by its Chairman, Ahmad Sajoh, and Secretary, Danjuma Sada, the Forum said the improvement represents one of the most remarkable gains in Nigeria’s external financial position in recent history.

According to the TSF, the growth in net foreign reserves reflects the positive impact of key economic 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 Forum explained that, unlike gross external reserves, which include liabilities and other financial obligations, net foreign reserves represent the foreign exchange resources that are readily available to support the economy.

It noted that the rise from about $3 billion to more than $40 billion has significantly strengthened Nigeria’s financial buffers and improved the country’s ability to withstand external economic shocks.

The TSF stated that the stronger reserve position would enable Nigeria to meet its external obligations more effectively, finance critical imports, reduce dependence on costly short-term external borrowing and provide greater support for a stable foreign exchange market.

According to the statement, improved external reserves also increase the availability of foreign exchange for manufacturers, investors and businesses that rely on imported machinery, industrial equipment and raw materials.

It added that greater exchange-rate stability allows businesses to plan more effectively, makes production costs more predictable and helps moderate inflationary pressures associated with currency volatility.

The Forum further noted that the stronger external position sends a positive signal to international investors, reinforcing Nigeria’s credibility as a stable and attractive investment destination.

It said the development complements recent improvements in foreign direct investment, portfolio inflows and sovereign credit ratings, creating favourable conditions 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 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.

“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 producing measurable results,” the Forum stated.

The TSF commended President Tinubu and the leadership of the Central Bank of Nigeria for sustaining the reform agenda despite the initial challenges, urging 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 recorded.