$40bn Net Foreign Reserves Reflect Tinubu’s Reform Gains, says TSF

The Tinubu Stakeholders Forum (TSF) has said Nigeria’s net foreign reserves, which reportedly rose from about $3 billion in 2023 to more than $40 billion within three years, underscore the impact of the economic reforms introduced by President Bola Tinubu.

The group said the increase reflects a significant improvement in the country’s external financial position and signals growing confidence in Nigeria’s economy.

In a statement signed by its Chairman, Ahmad Sajoh, and Secretary, Danjuma Sada, TSF attributed the development to a series of policy reforms undertaken since 2023, including the unification of the foreign exchange market, improved transparency in foreign exchange management, tighter monetary policy coordination and measures aimed at restoring investor confidence.

According to the forum, the sharp rise in net foreign reserves demonstrates that the reforms are strengthening the country’s economic resilience and providing a firmer foundation for long-term growth.

It explained that unlike gross external reserves, which include financial obligations and other liabilities, net foreign reserves represent the portion of foreign exchange assets that is readily available to support the economy.

“The increase from about $3 billion to more than $40 billion within three years therefore represents a substantial strengthening of Nigeria’s financial buffers,” the statement said.

TSF argued that the stronger reserve position would improve Nigeria’s ability to meet external obligations, finance strategic imports and cushion the economy against global economic shocks.

It also maintained that higher reserves would reduce dependence on costly short-term external borrowing while strengthening confidence in the naira and supporting stability in the foreign exchange market.

According to the group, improved external buffers would also enhance access to foreign exchange for manufacturers, investors and businesses that rely on imported machinery, industrial equipment and raw materials.

It added that greater exchange-rate stability would enable businesses to plan more effectively, reduce production uncertainties and help moderate inflation driven by currency volatility.

The forum further stated that the improvement in the country’s external reserves sends a positive signal to international investors by demonstrating greater macroeconomic stability and policy credibility.

It said the development complements recent improvements in foreign direct investment, portfolio inflows and sovereign credit assessments, creating favourable conditions for higher investment, increased production and job creation.

“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,” the group said.

TSF added that President Tinubu took difficult but necessary policy decisions at a critical period for the economy, insisting that the growth in net foreign reserves provides measurable evidence that those reforms are beginning to yield results.

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 government to continue implementing policies that encourage exports, expand domestic production, attract long-term investment and preserve macroeconomic stability.