The Democratic Front (TDF) has described Nigeria’s $6.84 billion balance of payment surplus recorded in 2024 as a strong sign of economic resurgence under President Bola Tinubu’s leadership.
In a statement issued recently, the Chairman of TDF, Malam Danjuma Muhammad, said the development was poised to bolster investor confidence and consolidate the country’s path towards long-term macroeconomic stability.
“This surplus does not only contribute to strengthening the nation’s foreign exchange reserves, but it also enhances Nigeria’s credit profile and provides greater leeway for effective monetary policy interventions,” Muhammad noted.
“More importantly, it reduces our reliance on foreign currency, which in turn promotes local production and domestic value creation.”
He attributed the positive outcome to a mix of fiscal reforms aimed at increasing government revenue, alongside recent monetary policies implemented by the Central Bank of Nigeria (CBN), which he said have significantly boosted trust in the Nigerian economy.
“These reforms have supported a shift towards import substitution and have encouraged local trade practices that help conserve foreign capital for domestic development,” he said.
The TDF expressed optimism that the current trajectory would bring down headline inflation and stimulate increased production, creating employment opportunities and wealth for the population.
“Historically, Nigeria’s economic model was built on heavy reliance on foreign exchange for both local and international transactions. This approach stunted sustainable growth and entrenched a cycle of persistent balance of payment deficits,” the group observed.
According to TDF, this pattern contributed to sustained pressure on the naira, undermining both the local currency and broader macroeconomic health.
However, the group argued that the tide has begun to turn, thanks to the pro-market reforms and policies favouring private sector involvement rolled out by the Tinubu administration. They pointed to a rise in naira-denominated transactions and a renewed focus on import substitution as early signs of meaningful progress.
One significant example cited by the group is the export of refined petroleum products from the Dangote Refinery to countries such as the United States and Saudi Arabia, a development that materialised under the current administration.
“The fact that Nigeria has posted a surplus of $6.84 billion in its balance of payment is a positive signal of lasting economic recovery and resilience in the face of global uncertainties,” the statement read.
TDF further stressed that this trade surplus reinforces the importance of continuing with the administration’s pragmatic economic reforms. It argued that these policies provide a solid framework for growing foreign reserves, servicing external debts, funding domestic investments, increasing national savings, and responding more effectively to internal economic shocks.
The group concluded by expressing hope that the current momentum would translate into more job creation and wider trade opportunities for Nigerians in the near future.
