Nigeria\’s Foreign Reserves Hit 2019 High Under Tinubu
Economic Growth and Diversification Under President Bola Tinubu
President Bola Tinubu has highlighted significant economic progress in Nigeria, emphasizing improvements in foreign reserves, tax revenues, and trade balance. These developments are seen as evidence of the country\’s resilience and efforts to diversify its economy.
In his Independence Day address marking the nation’s 65th anniversary, the President noted that Nigeria\’s foreign reserve position is stronger than it was three years ago. He revealed that external reserves reached $42.03 billion in September, the highest since 2019. This growth reflects a positive shift in the country\’s economic outlook.
Tinubu also pointed to the success of fiscal reforms, which have led to an improved tax-to-GDP ratio. The ratio has increased from less than 10% to 13.5%, with expectations of further improvement once the new tax law comes into effect in January. The President clarified that the new law is not about increasing the burden on current taxpayers but rather expanding the tax base to create a better Nigeria. It also aims to provide tax relief for low-income earners.
Trade Surplus and Economic Shifts
The President highlighted trade as a key area of positive transformation. Nigeria has transitioned to becoming a net exporter, recording a trade surplus for five consecutive quarters. This marks a fundamental shift, as the country now sells more to the world than it imports. This change strengthens the local currency and creates employment opportunities domestically.
According to Tinubu, the progress signifies a gradual move away from overreliance on oil. The trade surplus increased by 44.3% in Q2 2025 to ₦7.46 trillion ($4.74 billion), the largest in nearly three years. Exports of goods manufactured in Nigeria surged by 173%. Non-oil exports now account for 48% of total exports, compared to 52% for oil exports. This indicates a growing diversification of the economy and foreign exchange sources beyond oil and gas.
Challenges and Previous Setbacks
Despite these gains, the path to economic stability has not been without challenges. PUNCH Online reported that in 2022, Nigeria\’s reserves fell by $3.43 billion. This decline was attributed to several factors, including low oil production, capital flight, falling export earnings, and persistent external obligations.
These challenges underscore the complexity of Nigeria\’s economic landscape. However, the recent improvements suggest that the government\’s strategies are beginning to bear fruit. The focus on fiscal reforms, tax collection, and diversifying the economy represents a long-term approach to sustainable growth.
Future Outlook
With the implementation of the new tax law, there is optimism about further improvements in revenue generation and economic stability. The government\’s emphasis on expanding the tax base and supporting low-income earners aligns with broader goals of inclusive growth.
As Nigeria continues to navigate its economic journey, the combination of increased foreign reserves, a growing trade surplus, and a more diversified economy offers a promising outlook. The challenge now lies in maintaining these gains and ensuring that they translate into tangible benefits for all Nigerians.
