Nigeria’s foreign reserves have grown by a net inflow of about $2.35 billion, significantly bolstering the Central Bank’s reserves and aiding in the stabilization of the naira.
This development was disclosed by Wale Edun, Nigeria’s Minister of Finance and Coordinating Minister of the Economy, during the Corporate Customers Forum in Lagos on Thursday.
Edun emphasized that the inflows have been consistent over the first seven months of the year, contributing to an increase in the country’s foreign exchange liquidity.
He further attributed this steady rise to the government’s effective economic strategies.
The minister also pointed out that despite these gains, Nigeria’s tax-to-GDP ratio is still low, hovering at 10%, while the revenue-to-GDP ratio stands at 15%.
He stressed the need for more investments in infrastructure and social safety programs to address these figures and support economic growth.
Edun said, “We have relative currency stability. And of course, the all important margin of the rates. We’ve seen a gradual elimination of multiple exchange rate.
“We also have foreign exchange liquidity. The gross reserves are up. There have been a net inflow in the first seven months of this year of about $2.35 billion every month.
“On the fiscal side as well, government revenues are growing and the key to government revenue is not so much that government has revenue to compete with the private sector.
“It’s the fundamentals, the social and the key infrastructure spending. The social safety net spending. And historically, our figures are low. Our tax to GDP ratio is as low as 10%. Our revenue to GDP is also around 15%.”
