President Bola Tinubu has announced that the federal government intends to raise approximately $10 billion in revenue to increase liquidity in the foreign exchange markets.
Tinubu, who was ably represented by Vice President Kashim Shettima, made the announcement on Tuesday in Abuja at the inaugural Public Wealth Management Conference.
The Ministry of Finance Incorporated (MOFI) organised the event under the topic “Championing Nigeria’s Economic Prosperity”.
According to the president, his administration would create millions of employment by utilising Nigeria’s vast public assets to increase and double the country’s GDP.
What the President is saying.
VP Shettima read the President’s keynote address and stated:
“The Federal Government set a goal to raise at least $10 Billion in order to increase foreign exchange liquidity, a key ingredient to stabilise the Naira and grow the economy.”At the heart of this is ensuring that the Federal Government’s assets and investments are managed optimally in order to maximise revenue opportunities. This includes our ambitious and feasible aim to double GDP growth and significantly expand the GDP base over the next eight years.”
However, Tinubu stated that years of mismanagement and underutilization have harmed Nigeria’s assets, both within and outside its borders, resulting in income losses that have hampered economic growth.
Meanwhile, he emphasised that the newly reformed Ministry of Finance Incorporated, which will serve as the custodian and active manager of these assets, would now take centre stage.
The President stressed transparency and accountability as essential principles, believing that better corporate governance, innovative collaborations, and attracting alternative investment resources will result in large returns.
What You Should Know
President Tinubu’s government’s decision to consolidate the forex windows in mid-2023 caused a major collapse in the Naira’s value, with the exchange rate against the dollar rising from around N700/$1 to an unprecedented amount of more than N1,500/$1.
Yemi Cardoso, Governor of the Central Bank of Nigeria (CBN), has ascribed part of Nigeria’s substantial foreign exchange issues on a lack of foreign cash inflows into the country due to investor lack of confidence.
To address these issues, the CBN altered the activities of International Money Transfer Operators (IMTOs), limiting them to inbound transactions and requiring international transfers to be paid out in Naira.
This policy affects major IMTOs, such as Western Union and MoneyGram, and is part of a larger effort to stabilise the foreign currency market. Cardoso indicated in a Senate presentation two weeks ago that around $1 billion has been invested in the FX market in the last few weeks, citing the CBN’s recent policies as a contributor to this favourable trend.