Stronger Reserves Should Translate Into Economic Stability-Banwo
Dr Ope Banwo has said the improvement in Nigeria’s foreign reserves should be sustained and translated into greater economic stability for businesses and households.
Banwo, Mayor of Fadeyi and founder of Naija Lives Matter, made the call while commenting on the country’s economic performance and President Bola Tinubu’s Independence Day address.
He described the rebuilding of Nigeria’s external buffers as an important development but said stronger reserves should serve a broader economic purpose.
According to Banwo, the country needs to ensure that improved external liquidity supports stability in the foreign exchange market and strengthens confidence in the economy.
The International Monetary Fund reported that Nigeria’s gross international reserves increased to about $46 billion at the end of 2025 from about $40 billion at the end of 2024, while net international reserves rose from $23 billion to $35 billion over the same period.
The Fund also reported that gross reserves had risen further to about $49 billion on a 30-day moving average basis by the end of March 2026.
Banwo said the improvement should be viewed as a foundation for greater economic stability rather than an end in itself.
He called for policies that would strengthen Nigeria’s capacity to earn foreign exchange through exports, investment and other sustainable sources.
According to him, diversification of foreign exchange earnings would reduce pressure on the economy and provide greater resilience against external shocks.
Banwo also urged the government to continue strengthening the non-oil sector and supporting businesses that generate foreign exchange.
Nigeria recorded $6.1 billion in non-oil export receipts in 2025, according to the Nigerian Export Promotion Council, which said the figure was the highest formally documented value in the country’s history.
Banwo said stronger reserves and improved external earnings should ultimately contribute to a more predictable economic environment for businesses and households.
He added that greater stability in the foreign exchange market could make it easier for businesses to plan investments, manage costs and participate in international trade.
The Mayor of Fadeyi also stressed the need for prudent management of external buffers.
He said the country should continue building reserves while pursuing policies that expand productive activity and reduce excessive dependence on volatile sources of foreign exchange.
Banwo said the combination of stronger reserves, diversified exports and improved economic management could provide Nigeria with a stronger foundation for sustainable growth.
He urged policymakers to focus on ensuring that the gains in external stability are maintained and increasingly reflected in the wider economy.
