Lagos – Some experts on Wednesday said that the rising external reserves was a good development for the country.

They made the observation in separate interviews  in Lagos.

The National Bureau of Statistics, on Monday, said that the external reserves rose from 47 billion dollars in February to 49 billion dollars in March 2013.

 Mr Muda Yusuf, Director-General, Lagos Chamber of Commerce and Industry (LCCI), said that the increase in the nation’s external reserves would boost foreign investors’ confidence in the economy.

He said that the development would encourage more direct foreign investment inflow into the country.

“It is a good development; it will boost the nation’s economy.

“It shows that Nigeria is in a better position to meet its external obligations,” he said.

Yusuf said that the development would further strengthen the central bank’s ability to support the naira exchange rate.

Mr Deji Okeowo, Managing Director, Fidelity Security Ltd., also said that the robust external reserves would guarantee exchange rate stability for the naira.

Okeowo said that the high external reserves would enable government to be in position to import more goods and services.

“ It is an indication that the economy is gradually picking up and that the CBN is doing a lot to stabilise the economy, “ he said.

Okeowo advised the government to use the opportunity of the high oil prices to beef up the external reserves further.

Dr Kazeem Bello, Senior Lecturer, Department of Economics, University of Lagos, advised government to diversify the economic base to boost non-oil earnings. (NAN)