LAGOS: Financial experts have commended the Federal Government for raising Nigeria’s foreign reserves to 41 billion dollars, the highest in nearly four years, but urged more action to tackle inflation and improve citizens’ living standards.
Speaking in Lagos on Wednesday, the experts described the development as a positive signal for investor confidence, but warned that the benefits would be undermined if inflation and poverty persisted.
Prof. Sherifdeen Tella of Babcock University said the increase reflected a stronger outlook for the economy, noting that higher reserves meant greater import cover and improved investor confidence.
However, he stressed that food inflation, largely driven by agricultural challenges, remained a major burden on Nigerians.
A former CBN Director, Mr. Chris Nemedia, said building reserves strengthened Nigeria’s currency and global standing, but urged the government to focus more on reducing inflation, which was eroding citizens’ purchasing power.
Similarly, Mr. Boniface Okezie, President of the Progressive Shareholders Association of Nigeria, said higher reserves would boost investor confidence and enable the government to meet international obligations.
“We cannot celebrate rising reserves when the impact is yet to be felt by the people. Many Nigerians are still trapped in poverty due to the cost-of-living crisis,” Okezie said.
Nigeria’s reserves rose to 41 billion dollars on August 19, the highest since December 3, 2021.
Figures from the Central Bank showed steady accretion in recent weeks, driven by improved oil receipts and tighter monetary policies to stabilize the Naira.
The reserves, which fell below 34 billion dollars in 2023 amid forex shortages and debt servicing, have now rebounded, providing a stronger buffer for imports, debt repayment, and currency stability.