Nigeria’s foreign reserves record $2.35bn monthly net inflow – Edun

• Published On: 19 September 2024 at 18:13

Wale Edun, Minister of Finance and Coordinating Minister of the Economy, has stated that Nigeria is currently receiving a net inflow of approximately $2.35 billion into the central bank's foreign reserves.

This development suggests a positive trend in the country's foreign exchange position.

According to Nairametrics, Edun disclosed this in a statement while speaking at the Access Bank annual cooperation forum in Lagos in 2024.

He stated that the increase in foreign reserves has played an important role in keeping the naira stable in the foreign exchange market.

The Minister stated that this positive trend has continued over the last seven months of 2024.

"Our currency is relatively stable. Of course, there's the all-important rate margin. Multiple exchange rates have gradually been eliminated.

"We also have foreign-exchange liquidity. The gross reserves are increasing. In the first seven months of this year, there was an average monthly net inflow of $2.35 billion.

"On the fiscal side, government revenues are also increasing, and the key to government revenue is not simply that the government has revenue to compete with the private sector.

"It's about the fundamentals, the social and critical infrastructure spending. Social safety net spending. Our figures are historically low. Our tax-to-GDP ratio is as low as ten percent. "Our revenue to GDP ratio is also around 15%," Edun explained.

The Minister emphasised that the government is focused on increasing crude oil production to boost fiscal revenues.

He stated that Nigeria is on track to meet its target of two million barrels per day by the end of 2024.

He also mentioned that the government is implementing policies to diversify the economy and reduce reliance on oil revenues.

"There is a commitment to increase oil production to 2 million bpd by the end of the year.

"In addition, our exports must be significantly diverse, and one important area to consider is services. "We have the demographics and a relatively skilled population, so we can export our services," he added.

According to the Central Bank of Nigeria, the country's foreign reserves have increased significantly in recent months, owing to higher interest rates and the devaluation of the naira.

These factors have made Nigeria a desirable destination for foreign portfolio investments. According to recent reports, foreign reserves reached a historic high of $34.66 billion in June 2024.