FG to lift up Naira with $10b Forex inflow

By Ologeh Joseph Chibu

The Nigerian Federal Government is set to lift up Naira from stupor.

In the new initiative, the FG will raise $10 billion to enhance liquidity in the foreign exchange market. The urgency of the plan, Irohinoodua was told was underscored by the naira’s recent plunge to a record low of 1,850 per dollar in the parallel market on Wednesday.

President Bola Tinubu, represented by Vice President Kashim Shettima, revealed this initiative during the inaugural Public Wealth Management Conference held in Abuja on the same day. The event was monitored by Irohinoodua.

The Senior Special Assistant to the President on Media & Communications, Stanley Nkwocha said the government aims to boost foreign exchange liquidity as a pivotal step towards stabilizing the naira and fostering economic growth.

Nkwocha said “The Federal Government set a goal to raise at least $10bn in order to increase foreign exchange liquidity, a key ingredient to stabilise the naira and grow the economy.”

He emphasized that the overarching objective is to maximize the management of federal assets and investments to unleash their revenue potential. This strategy is integral to the government’s ambitious plan to double the GDP growth rate and significantly expand the GDP base over the next eight years.

“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.”

The enhanced returns from these endeavors will be channeled into essential sectors such as education, healthcare, housing, infrastructure, power, and roads, aiming to uplift millions from poverty and stimulate sustainable economic development while generating employment opportunities for the youth.

The country has grappled with a persistent forex shortage exacerbated by dwindling oil production and foreign inflows.

According to data from FMDQ Securities, which oversees forex trading in Nigeria, the naira experienced volatile trading, reaching an intra-day high of 1,701/$ and a low of 1,100/$ before closing at 1,551/$ on Tuesday.

In June 2023, the Central Bank of Nigeria adopted a floating exchange rate regime, unifying all segments of the forex market, leading to a substantial devaluation of the local currency.

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