Economy

Nigerians Urge FG to Use Rising Foreign Reserves to Ease Cost of Living

Published

4 months ago

June 29, 2026

Nigeria reserves have climbed to $50.11 billion in June, the highest level since 2009, boosting investor confidence and providing a stronger buffer against external shocks

Nigeria’s foreign exchange reserves climbed to $50.11 billion in June, the highest since 2009, strengthening the country’s external position and providing additional support for currency stability.

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The rise reflects improved foreign exchange inflows and reinforces efforts to strengthen macroeconomic fundamentals, according to data from the Central Bank of Nigeria.

Central Bank Governor Yemi Cardoso attributed the growth to transparent market-driven reforms, increased diaspora remittances, improved oil production and robust non-oil exports.

He said the steady accumulation of reserves, with gross levels now exceeding $50 billion, provided the country with nearly a year of import cover, substantially exceeding the standard international benchmark of three months.

This Nigeria reserves milestone has been welcomed by experts who say stronger reserves can improve investor confidence, enhance the country’s ability to manage external shocks and provide greater flexibility in foreign exchange management.

However, some stakeholders say a typical Nigerian is not concerned with external reserves.

They said the major concern of Nigerians today was how to get basic necessities like food, clothing, housing and medication which they could barely afford due to the high cost of living.

According to economist Bayo Dada, economic growth is not measured by figures on paper alone.

“The true test of economic performance is the standard of living of ordinary citizens. Can people afford food? Are businesses expanding? Are jobs being created? Are families living better today than they were yesterday?” he said.

A policy analyst, Sule Aliu, said the true significance of foreign reserves depended on the extent to which they support broader economic transformation and improve the welfare of citizens.

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This Nigeria reserves achievement comes as the government continues to implement reforms under the Renewed Hope Agenda, with officials emphasising the need to translate stability into tangible benefits for citizens.

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Economy

NRS Assures Taxpayers VAT Remains at 7.5% Amid Tax Reform Concerns

Published

1 day ago

October 27, 2026

Peculiar Adirika

NRS VAT rate remains 7.5%, the agency says, while addressing concerns over bank deductions, loans and the implementation of Nigeria’s tax reforms

The Nigeria Revenue Service (NRS) has assured taxpayers that Nigeria’s standard Value Added Tax (VAT) rate remains 7.5 per cent, while addressing concerns over the implementation of the country’s new tax reforms.

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The assurance was given by the Tax Administrator responsible for Kano, Jigawa and Katsina states, Samaila Abdullahi, during an NRS stakeholders’ engagement and tax reform sensitisation programme in Kano.

Abdullahi said concerns raised by individuals, traders, business owners and other stakeholders about the new tax laws were understandable, particularly questions relating to bank transactions, loans, family transfers, business income and the potential impact on small businesses.

He urged taxpayers to understand the reforms through the provisions of the law rather than rely on assumptions or misinformation.

According to him, the tax laws do not automatically authorise deductions from personal bank accounts.

He stressed that tax collection and recovery must follow the applicable legal provisions and procedures.

Abdullahi also clarified that money received as a loan should not automatically be classified as business income or profit, explaining that proper documentation is essential to establish the nature of a transaction.

“For instance, when a trader receives a loan of N500,000, the amount should not automatically be treated as N500,000 in sales or profit, provided the transaction is properly documented,” he said.

The NRS official’s comments were aimed at addressing public concerns about how the new tax framework would affect personal finances and business transactions.

He emphasised the importance of distinguishing between taxable business receipts and other funds, such as documented loans, when determining a taxpayer’s obligations.

The clarification comes amid heightened public interest in Nigeria’s tax reforms and questions about their implications for individuals, traders and small businesses.