President Bola Tinubu has stated that the federal government is looking to raise about $10 billion in revenue to boost liquidity in the foreign exchange market.
Tinubu who was ably represented by the vice president, Kashim Shettima, disclosed this on Tuesday in Abuja during the inaugural Public Wealth Management Conference.
The event was organized by the Ministry of Finance Incorporated (MOFI) with the theme, “Championing Nigeria’s Economic Prosperity”.
According to the president, his administration will generate millions of jobs by leveraging Nigeria’s extensive public assets to maximize and double the nation’s Gross Domestic Product (GDP).
What the President is Saying
Reading the President’s Keynote address, VP Shettima 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 core of this is ensuring optimal management of the assets and investments of the Federal Government towards unlocking their revenue potential. This includes our bold and achievable plan to double the GDP growth rate and significantly increase the GDP base over the next 8 years.”
However, Tinubu pointed out that years of mismanagement and underutilization have affected Nigeria’s assets, both within and beyond its borders, resulting in revenue losses that have impeded economic growth.
Meanwhile, he assured that the newly restructured Ministry of Finance Incorporated, which is to act as custodian and active manager of these assets, will now take the center stage.
The President further emphasised transparency and accountability as key principles, believing that improved corporate governance, innovative partnerships, and attracting alternative investment capital will significantly increase returns.
What you should know
President Tinubu’s government’s move to merge the forex windows in mid-2023 triggered a significant drop in the Naira’s value, with its exchange rate against the Dollar escalating from roughly N700/$1 to an unprecedented level of over N1,500/$1.
- The Governor of the Central Bank of Nigeria (CBN), Yemi Cardoso, has partly attributed the significant foreign exchange challenges facing Nigeria to the absence of inflow of foreign exchange into the country due to lack of confidence from investors.
- To address these challenges, the CBN revised the operations of International Money Transfer Operators (IMTOs), restricting them to inbound transfers only and mandating that international transfers be paid out in Naira.
- This policy impacts major IMTOs, including Western Union and MoneyGram, and is part of broader efforts to stabilize the foreign exchange market.
- In a presentation to the Senate two weeks ago, Cardoso revealed that around $1 billion has been invested in the FX market over the past couple of weeks, adding that CBN’s recent policies have contributed to this positive trajectory.
