Use Rising Foreign Reserves To Check Cost Of Living, Nigerians Urge FG

Experts say sronger reserves can improve investor confidence, enhance the country’s ability to manage external shocks, and provide greater flexibility in foreign exchange management.

The News Agency of Nigeria (NAN) reports that recent data from the Central Bank of Nigeria (CBN) shows that Nigeria’s foreign exchange reserves climbed to 50.11 billion dollars in June, the highest since 2009.

This position strengthens the country’s external position and provides additional support for currency stability.

The rise reflects improved foreign exchange inflows and reinforces efforts to strengthen macroeconomic fundamentals.

According to Mr Yemi cardos, the CBN Governor, the rise in foreign reserves is a critical buffer against external shocks and a key indicator of restored investor confidence.

Cardoso attributed the growth to transparent market-driven reforms, increased diaspora remittances, improved oil production, and robust non-oil exports.

He said that the steady accumulation of reserves, with gross levels now exceeding 50 billion, provided the country with nearly a year of import cover.

The CBN governor said that this substantially exceeded the standard international benchmark of three months.

However, some stakeholders say a typical Nigerian is not concerned with external reserves.

They said that the major concern of Nigerians today was how to get basic necessities like food, clothing, housing and medication which they could barely afford due to high cost of living.

According to Mr Bayo Dada, an economist, economic growth is not measured by figures on paper alone.

“The true test of economic performance is the standard of living of ordinary citizens. Can people afford food? Are businesses expanding? Are jobs being created? Are families living better today than they were yesterday?

“No amount of statistical engineering can hide the reality Nigerians face every day. People do not live inside economic reports; they live in the real economy,” he said.

Mr Sule Aliu, a policy analyst, said that the true significance of foreign reserve depended on the extent to which they support broader economic transformation and improve the welfare of citizens.

​He said that if Nigeria was to convert stronger reserves into lasting progress, the objective should not simply be to accumulate foreign assets .

“The objective should be to build a diversified and productive economy capable of sustaining growth over time.

“The real challenge is not how much the country holds in reserve, but how effectively it uses that stability to improve the lives of its citizens,” he said.

A civil servant, Ibrahim Muhammed, said that economic statistics made little sense in a society where poverty prevailed.

“What is the impact of foreign reserves on the livelihoods of government workers?

“As we speak, the minimum wage is still N70,000, which is a far cry from today’s economic reality. We still have unpaid arrears of wage award.

“This news about rising foreign reserves does not reflect the country’s economic reality, ” he said.

Source: News Agency of Nigeria (NAN)