The coordinating minister for the economy and minister of finance, Wale Edun, reports that during the first seven months of the year, Nigeria’s foreign reserves saw a net inflow of $2.35 billion.
Edun addressed Thursday at the Access Bank business forum in Lagos.
The minister stated that the naira’s foreign exchange (FX) market stability increased foreign reserves.
He also stated that access to foreign exchange had improved.
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 rates.”
“We also have foreign exchange liquidity. The gross reserves are up. There has 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 the government has revenue to compete with the private sector.”
Edun, on the other hand, stated that Nigeria’s tax-to-GDP ratio is as low as 10%, while revenue to GDP is around 15%.
According to data from the Central Bank of Nigeria (CBN), Nigeria’s external reserves were $36.08 billion on September 12.
The CBN stated on September 17 that the country’s foreign exchange reserves are at danger as a result of the withdrawal of petrol subsidies and decreasing crude oil earnings.
The apex bank also stated that rising external debt servicing commitments could jeopardise the expansion of external reserves.