Experts advise FG on $50.45 billion external reserves claim

Some financial experts have commended the federal government for increasing the country’s external reserves to $50.45 billion.
They disclosed this on Thursday in Lagos, while reacting to the increase in the country’s external reserves to a 13-year high of $50.45 billion.
The Governor of the Central Bank of Nigeria, Olayemi Cardoso, disclosed this at the end of the 304th Monetary Policy Committee meeting held in Abuja.
Mr Cardoso said the current reserve level was sufficient to cover about 9.68 months of imports, underscoring improved external buffers.
The experts, however, said the reserves need to reflect on the life of the populace and also reduce the government’s desire for foreign loans.
Sheriffdeen Tella of the Department of Economics, Babcock University, Ogun State, commended the government for raising the external reserves to the current height.
“However, the country’s exchange rate ought to have improved beyond what we have now because a huge reserve determines the value of the exchange rate.
“Also, the government should reduce the spate of foreign loans considering the volume of reserves that is accrued to the country,” Mr Tella said.
He urged the federal government to embrace initiatives that would increase the country’s capital accumulation to support the productive sectors.
He said this would accelerate economic growth and development, rather than increasing reserves and reliance on more foreign loans from international developmental partners.
Also speaking, a former executive director of the National Association of Small and Medium Enterprises, Nerus Ekezie, commended the government for raising the reserves.
“This sort of foreign buffer should indicate how healthy an economy is, ideally. But we have yet to feel the positives of such reserves, and the government should ensure that it is not just on paper,” Mr Ekezie said.
He described robust reserves and the petroleum subsidy removal as adequate economic fundamentals to address the headwinds in the country.
The National Coordinator of the Independent Shareholders Association of Nigeria, Moses Igbrude, acknowledged the increase in the foreign reserves.
“The increase is a good move because it will engender investors’ confidence in the general economy.
“However, the government should ensure that it translates into a better life for the people regardless of the class,” Mr Igbrude said.
(NAN)
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