Nigeria’s federal government on Tuesday, has declared war on currency speculation in its effort to stem the crisis in the foreign exchange (FX) market.
The government issued a directive to the Office of the National Security Adviser (ONSA) and Central Bank of Nigeria (CBN) to join forces to address the challenges posed to the national economy by the speculative FX activities.
Equally, on Tuesday in a renewed bid to safeguard Nigeria’s FX market and combat speculative activities, the government deployed the Nigeria Police, Economic and Financial Crimes Commission (EFCC), Nigeria Customs Service (NCS), and Nigerian Financial Intelligence Unit (NFIU) to fight the menace.
The fresh measures came as the naira sustained its free fall at the parallel segment of the FX market, dropping to a record N1,830 to a dollar, a slide by N335 in just one week, compared to the N1,495 to a dollar it closed on February 13.
But President Bola Tinubu on Tuesday disclosed a plan by the federal government to raise at least $10 billion in order to increase FX liquidity, a key ingredient to stabilise the naira and grow the economy.
The naira, in one week, recorded its highest slump on the parallel market as it closed at N1,830/$ on Tuesday, while on the Nigerian Autonomous Foreign Exchange (NAFEM) it closed at N1,551.24/$1, a N47.3 appreciation compared to the N1,598.54 it closed on Monday.
However, speaking on Tuesday in Abuja, at the inaugural Public Wealth Management Conference, with the theme, “Championing Nigeria’s Economic Prosperity,” organised by the Ministry of Finance Incorporated (MOFI), Tinubu said his administration would create millions of jobs by unlocking the value of Nigeria’s vast public assets with a view to optimising and doubling the country’s Gross Domestic Product (GDP).
The president, who was represented at the event by Vice President Kashim Shettima, highlighted a low-hanging fruit of identifying, consolidating, and maximising returns on government-owned assets worth trillions of naira.
According to him, with economic revitalisation as its top priority, the federal government has a target of raising at least $10 billion in order to increase foreign exchange liquidity that will, in turn, stabilise the naira.
Tinubu said, “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 eight years.”
The president stated that decades of mismanagement and underutilisation had plagued the country’s assets spread across Nigeria and outside the borders, leading to revenue losses that have hindered economic growth.
He assured that the newly restructured Ministry of Finance Incorporated, designed to act as custodian and active manager of the assets, would now take centre 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.
He said the improved returns would, then, be directed towards, “crucial funding for education, healthcare, housing, power, roads and other areas vital to lifting millions out of poverty”, and stimulating sustainable economic development and job creation for the youth.
Stressing that the initiative was not just about revenue generation, but also creating inclusive and sustainable growth, Tinubu said by efficiently managing public resources, the government aimed to build a more equitable society and unlock the full potential of its citizens.
He called on all stakeholders, including ministries, development financial institutions, and both public and private sector players, to partner with MOFI in optimising the strategic assets. He expressed hope that the collaborative effort would unlock Nigeria’s full potential and create a brighter future for all citizens.
Nonetheless, Shettima alleged that certain unnamed individuals, who could not get to power through the ballot box, were hell-bent on plunging the country into a state of anarchy instead of waiting to have another attempt in 2027.
The vice president said, “I do believe that harnessing our vast assets ultimately boosts economic prosperity for all. We are passing through some rough waters, but when there is a will, there is a way.
“We know the consequences of…
Read More: Nigeria Declares War on FX Speculators as Naira Drops to N1,830/$