Nigeria’s Foreign Reserves Reach $37b Amid Major Economic Reforms

Nigeria’s President, Bola Ahmed Tinubu has disclosed that the nation’s foreign reserve now stands at $37b, following his administration’s commitment to meet all obligations and pay bills.

The President made this known on Tuesday, October 1st, during his nationwide live broadcast on the occasion of the 64th Anniversary Independence of Nigeria.

President Tinubu disclosed that his administration inherited a reserve of over $33b, sixteen months ago while it paid back the inherited FX backlog of $7b.

He further revealed that his administration has cleared the ways and means of debt of over N30tr, as it reduced the debt service ratio from 97 per cent to 68 per cent.

The President added that the disciplined approach adopted by the Central Bank to monetary policy management facilitated the stability and predictability Nigerians currently experience as regards the nation’s FX market.

“My administration took over the leadership of our country 16 months ago at a critical juncture. The economy faced many headwinds, and we found ourselves at a dizzying crossroads, where we must choose between two paths: reform for progress and prosperity or carry on business-as-usual and collapse. We decided to reform our political economy.

“The more disciplined approach adopted by the Central Bank to monetary policy management has ensured stability and predictability in our foreign exchange market. We inherited a reserve of over $33 billion 16 months ago. Since then, we have paid back the inherited forex backlog of $7 billion. We have cleared the ways and means of debt of over N30 trillion. We have reduced the debt service ratio from 97 per cent to 68 per cent. Despite all these, we have managed to keep our foreign reserve at $37 billion. We continue to meet all our obligations and pay our bills.”

$30b Foreign Direct Investment

While noting that the nation’s economy is undergoing necessary reforms and retooling, the Nigerian Leader affirmed that failure to correct past fiscal misalignments which led to the current economic downturn would have thrown the nation into an uncertain future and unimaginable consequences.

President Tinubu added that the reforms are yielding results with the $30b worth of foreign direct investments accrued to the nation’s coffers in the last one year.

Commitment To Investment

The President further expressed the commitment of his administration to free enterprise, free entry and free exit in investments while maintaining the sanctity and efficacy of the regulatory processes.

President Tinubu added that the principle guides the divestment transactions in the nation’s upstream petroleum sector, where the government is committed to changing the fortune of the country positively.

“As such, the ExxonMobil Seplat divestment will receive ministerial approval in a matter of days, having been concluded by the regulator, NUPRC, in line with the Petroleum Industry Act, PIA. This was done in the same manner as other qualified divestments approved in the sector.”

The Nigerian Leader emphasised that the move will create vibrancy and increase oil and gas production as well as further impacting the nation’s economy positively.

Fiscal Policy Reforms

To further stimulate the productive capacity and create more jobs, President Tinubu mentioned that the Federal Executive Council approved the Economic Stabilisation Bills, which he described as transformative bills that would make the Nigerian business environment more friendly, stimulate investment and reduce the tax burden on businesses and workers, once passed into law.

Olusola Akintonde