The Nigerian government is eyeing increased oil production to boost forex inflow to stabilise the naira and boost economic growth.
Minister of Finance and Coordinating Minister of the Economy, Wale Edun made this known while speaking during the intergovernmental Group-24 on Tuesday at the ongoing IMF/ World Bank meetings in Washington D.C., USA.
He noted that the recent significant increase in forex inflow has been a key factor in stabilising the naira in the foreign exchange market.
“Nigeria is on track to meet its target of producing two million barrels of crude oil per day (bpd) before the end of 2024, providing a significant boost to fiscal revenues”.
Edun, who emphasised the positive impact of forex inflows into the country’s foreign reserves, noting that the broader economy has improved, and the nation’s gross reserves have increased, highlighted that the growing government revenues are currently being driven by fundamental economic reforms.
“We are seeing relative currency stability, alongside the gradual elimination of multiple exchange rates. Foreign exchange liquidity has improved, and our gross foreign exchange reserves have increased.
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“The net inflow into the central bank’s foreign reserves stands at about $2.35 billion each month for the first seven months of 2024.”
On fiscal growth and economic reforms, he said: “Government revenue is not just about competing with the private sector; it’s about ensuring that essential infrastructure and social programmes are adequately funded”.
On the outlook for Nigeria’s economic future, Edun emphasised that Nigeria, no doubt appears to be on a path toward sustained economic stability.
“The rise in foreign reserves, coupled with reforms in the oil sector and efforts to diversify exports, suggests that the country is positioning itself for long-term growth”.
According to the Finance Minister, continued Nigeria’s economic reforms, increased oil production, and diversification of exports will support the country’s fiscal and economic resilience.
“As Nigeria moves forward, the combination of fiscal prudence, revenue growth, and foreign reserve management will play a crucial role in bolstering the economy and stabilising the naira, ensuring a more robust and competitive market”, he averred.
By Babajide Okeowo
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