It is heartening to also note that the posting of 6.84 billion dollars surplus in the balance of payment
The Democratic Front (TDF) asserts that the surplus of 6.84 billion dollars in the balance of payments in 2024 is yet another sign of the economic prosperity that has been achieved under the government of President Bola Tinubu.
Malam Danjuma Muhammad, Chairman of TDF, in a statement on Monday April 21, said the development would boost investors’ confidence in the country.
“In addition to increasing the country’s foreign exchange reserve, improving the nation’s creditworthiness, and enhancing monetary policy flexibility in the economy, the balance of payment surplus will significantly reduce Nigeria’s dependency on foreign exchange to the benefit of local productivity.
“We believe that the combination of fiscal reforms in the macroeconomic system, which has enhanced the Federal Government’s revenue generation capacity, and monetary policy reforms introduced by the CBN, have boosted confidence in the Nigerian economy.
“These have encouraged import substitution in economic trades to conserve foreign capital for local economic growth.”
TDF expressed its conviction that this economic achievement would unavoidably result in a decrease in headline inflation and would also set off an increase in output, which would result in the creation of wealth and employment opportunities for indigenous Nigerians.
“We recall that for decades, the history of Nigeria’s economy was replete with over-dependence on foreign exchange for local and international trades, which impeded sustainable growth.
“This instituted a trajectory of consistent deficit in the balance of payment, and put pressure on the dollar to the detriment of the local currency and our macro economy.”
The group said the Nigerian economy had responded positively to the pro-market and the private sector-friendly reforms of the Tinubu administration, as evident in the increased use of Naira for major trades, and exploring opportunities for import substitution.
“This policy has provided an incentive for Nigeria to export refined petroleum products to the United States, Saudi Arabia and other parts of the world through the Dangote Refinery, which began production under the Tinubu administration.
“It is heartening to also note that the posting of 6.84 billion dollars surplus in the balance of payment, is an indication of sustainable economic growth and stability and a show of strength to resist global economic shocks and headwinds,” the group added.
It claimed this was the only way to boost national savings, respond to local economic issues, finance investments, raise the country’s foreign exchange reserves, and drive growth and productivity.
It expressed hope that the upcoming months would bring an increase in employment prospects and a proliferation of trade opportunities for Nigerians.