Democratic Front ,TDF, says the 6.84 billion dollars balance of payment surplus in 2024 is another indication of economic prosperity under President Bola Tinubu’s administration.
Malam Danjuma Muhammad, Chairman of TDF, in a statement yesterday 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”, said TDF.
The group said it was confident that this economic feat would inevitably lead to a reduction in headline inflation and also trigger an increase in production that would generate wealth and employment for 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”, said TDF.
It, however, 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.
The group said the trade surplus underscored the need for the continuous implementation of the bold and pragmatic economic policies of the administration.
It said this was the only viable route to increasing the country’s foreign exchange reserves, service external debt, finance domestic investments, increase national savings, respond to internal economic challenges, and also stimulate economic growth and productivity.
It said it was optimistic that it would inevitably lead to more jobs and a plethora of trade opportunities for Nigerians in the coming months.
