Nigeria Foreign Exchange Reserve, National Debt not Mutually Exclusive- Expert
Segun Aremu, a financial expert, stated that the increase in Nigeria’s Foreign Exchange Reserve and its growing debt are not necessarily linked but may intersect in the long run.
Segun made these comments in an exclusive interview with our correspondent in response to reports that Nigeria’s foreign exchange reserves had reached $33.58 billion – the highest since March 28, 2024 – and that Nigeria’s national debt, according to the DMO, was $87.91 trillion in Q3.
Commenting on Nigeria’s Foreign Exchange Reserve, Segun said “What has been happening so far so good is that the federal government and the Central Bank (CBN), have been implementing some foreign exchange and monetary policies, which have yielded results.
‘’When we are talking about things like this you are looking at the fact that what has been the inflows that have come into our balance of payment system. And you would discover that we must have had some good oil sales, some exports which have increased and have brought in revenues.
Speaking further, Segun said: “We also need to look at the spending part as well, which is the expenditure part that allows the funds to go out which is under import.
‘’Some items are being controlled, meaning that people are not requesting the US dollar to get this transaction.
”When it comes to situations where people need to obtain US dollars, for example, you can see how Dangote selling diesel might help alleviate the impact on the USD. People are purchasing diesel from Dangote Refinery instead of buying from foreign sources. This in turn reduces the demand for US dollars in import transactions.
‘’That means that the funds we are getting from our exports are increasing coupled with the fact that there have been some policies to regulate the FX market which is now yielding its fruit.
‘’Again, there will be a reduction in the number of people demanding forex, which will always have a positive influence on us as a country.On Nigeria’s rising debt, He cautioned Nigeria about its escalating debt, “Every country borrows at some point. Foreign debt may seem appealing, but most of this debt comes from Eurobonds and is long-term in nature.
