Nigeria’s foreign reserves have seen a substantial net inflow of approximately $2.35 billion into the Central Bank’s reserves, according to Wale Edun, Minister of Finance and Coordinating Minister of the Economy. He made this announcement during the Corporate Customers Forum held in Lagos on Thursday.
Edun highlighted that the inflow of $2.35 billion per month over the first seven months of the year has been instrumental in stabilizing the naira in the foreign exchange market.
He also pointed out that the country’s foreign exchange liquidity has improved, with gross reserves seeing a notable increase. “On the fiscal side, government revenues are also growing,” Edun remarked, crediting these improvements to ongoing government efforts.
The minister emphasized the need for increased infrastructure spending and social safety nets, noting that Nigeria’s tax-to-GDP ratio stands at 10%, while revenue-to-GDP is at 15%, figures he described as low.
Edun also mentioned progress in stabilizing the naira, highlighting the gradual elimination of multiple exchange rates, contributing to a more stable currency environment.
In July, data from the Central Bank of Nigeria showed that the country’s foreign reserves had risen to $35.05 billion, reflecting a return to levels seen at the beginning of President Bola Tinubu’s administration.
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