Tinubu’s Policy Document Targets $60bn Reserve

An economic policy document prepared for President Bola Ahmed Tinubu’s government is targeting foreign reserves in the excess of $60bn with an exchange rate pegged between N500 and N600/$1.

This is even as the policy document pushed for the doubling of exports to support growth ambitions.

The report from Tinubu’s policy advisory council, seen by Reuters on Friday, proposed reforming the Central Bank of Nigeria (CBN), including a halt to its quasi-fiscal operations that accelerated under suspended governor Godwin Emefiele.

This would be achieved by ramping up the production of oil and gas, lifting manufacturing exports, and attracting investment in light electronics assembly, fertilizers, sugar, and palm oil.

But Nigeria would need to more than double exports from $42.4 billion last year. Foreign reserves, which have been falling, stood at $35.25 billion at the end of May, official data shows.

With more revenue, the government can ramp up capital expenditure to 25% of gross domestic product from 4.1% and narrow the budget deficit to 3% of GDP, down from 4.78% estimated for this year, the document said.