Nigeria's Foreign Reserve Grows to $37.31 billion a 22- Month High

Nigeria's economic policy, known as Tinubunomics, is demonstrating positive outcomes, as evidenced by the growth of the country's foreign reserves to $37.31 billion. 

Why does this matter:  The economic strategy, spearheaded by President Tinubu, has encountered several challenges, including removing the fuel subsidy, rapid devaluation of the Naira, prolonged petrol queues, and escalating inflation, leading to economic adversities. Additionally, the high cost of conducting business has prompted the departure of some foreign multinational corporations from the country. 

The current administration, has proactively undertaken measures to revamp the economy. These initiatives encompass the establishment of an efficient and  centralised tax system to augment revenue generation, exploration of additional infrastructure projects to stimulate the economy, some social programs like student loans, elevation of interest rates to combat mounting inflation, and the implementation of an innovative policy involving the provision of Naira for crude with Dangote Refinery aimed at addressing fuel scarcity and any future demand. The administration has reported significant accomplishments, including clearing a foreign exchange (FX) backlog amounting to $7 billion.

Nigeria has made good progress, as indicated by its reduction of the debt-to-service ratio from a high of 97.5% to now at 68%. However, the anticipated trickle-down economic effects may necessitate more time for it to be translated to the general populace.

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