Nigeria’s Forex Reserves Soar to $38.4 Billion, Fiscal Deficit Narrows Under Tinubu’s Reforms

Fiscal Deficit………… Nigeria’s foreign exchange reserves have climbed significantly, rising from $32.9 billion at the end of 2023 to over $38.448 billion by June 2025, marking a notable milestone in the country’s economic recovery efforts. The disclosure was made on Monday, June 23, by Prince Gboyega Nasir Isiaka, Chairman of the House Committee on National Planning and Economic Development.

Isiaka, who represents the Yewa North/Imeko-Afon federal constituency, made the announcement during a constituency briefing in Abeokuta, the capital of Ogun State, where he presented his mid-term report detailing legislative and community development achievements.

According to Isiaka, the sharp improvement in the nation’s reserve position and the narrowing fiscal deficit are signs that the economic reforms championed by President Bola Tinubu are beginning to yield meaningful outcomes.

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Forex Gains and Fiscal Consolidation

“Foreign exchange reserves have risen from $32.9 billion at the end of 2023 to over $38.448 billion USD as of today, June 2025,” Isiaka stated. He added, “The federal fiscal deficit has narrowed significantly, signalling stronger financial discipline and improved economic management.”

He attributed these improvements to a series of bold economic decisions taken by the Tinubu administration, including the elimination of fuel subsidies, the unification of foreign exchange rates, and the recent Tax Reform Bill, which he said would improve revenue generation while curbing fiscal leakages.

“These are difficult but necessary steps. They are already beginning to stabilize key macroeconomic indicators,” he said.

Exchange Rate Stabilization and Inflation Trends

Isiaka also addressed the issue of exchange rate volatility, noting that the current policy has resulted in a more stable and predictable naira, enabling better planning for both public and private sector entities. The improved clarity in the forex market, he emphasized, has encouraged greater inflows of direct foreign investments, which are essential to job creation and economic expansion.

“Inflation, which had previously risen to alarming levels, is now beginning to trend downward,” Isiaka observed, suggesting that the worst of the inflationary pressures may be easing due to monetary and fiscal coordination.

Legislative Focus and Community Impact

The lawmaker used the occasion to highlight his efforts within the National Assembly, stating that he had sponsored five bills and five motions focused on national development, ranging from infrastructure to youth empowerment.

On the constituency level, Isiaka reported that he had empowered over 4,000 constituents through various interventions including vocational training, equipment support, and financial assistance for small-scale enterprises.

“We are intentionally equipping our people with different means to build sustainable livelihoods and foster economic self-reliance,” he told the gathering.

Addressing Public Hardship

While acknowledging the hardship experienced by Nigerians due to recent reforms, particularly the removal of fuel subsidies, Isiaka argued that the pain is temporary and necessary for long-term prosperity.

Responding to public concerns, he said: “The essence of leadership is to take you through the best route that will give you desired results.”

He urged Nigerians to remain patient, expressing confidence that better days lie ahead. “By the time the president gets his second term, which I am sure by the time he’s sworn in by May 2027 insha Allah, I am sure we are going to see better and better days,” he stated with optimism.

Mixed Reactions from Citizens

Though the announcement of increased reserves and fiscal improvements has been met with cautious optimism, many Nigerians still grapple with high living costs, unemployment, and unstable power supply—factors that continue to undermine day-to-day life.

Economic analysts acknowledge that while improvements in forex reserves and deficit control are commendable, the government must now translate macroeconomic gains into tangible benefits for ordinary citizens. Key areas requiring urgent attention include food inflation, youth unemployment, and security—issues that directly affect national productivity and public confidence.

Conclusion: A Turning Point or Temporary Relief?

With the increase in foreign reserves and signs of fiscal prudence, Nigeria may be on the path to macroeconomic stability. However, the ultimate test of President Tinubu’s reforms will be whether they translate into sustainable job creation, poverty reduction, and improved living conditions for millions of Nigerians.

For now, leaders like Isiaka remain hopeful that the foundations being laid today will support a stronger, more inclusive economy by the next electoral cycle.