In a bid to address the recent plunge of the naira to an unprecedented low of 1,850 against the dollar on the parallel market, the Federal Government has unveiled plans to raise $10 billion aimed at bolstering liquidity in the foreign exchange market.
During the inaugural Public Wealth Management Conference held in Abuja, Vice President Kashim Shettima, representing President Bola Tinubu, disclosed the government’s ambitious initiative. Organized by the Ministry of Finance Incorporated under the theme “Championing Nigeria’s Economic Prosperity,” the event aimed to explore strategies to enhance the country’s economic resilience.
In a statement released by the Senior Special Assistant to the President on Media & Communications, Stanley Nkwocha, it was revealed that the government’s primary objective is to boost foreign exchange liquidity, a crucial factor in stabilizing the naira and fostering economic growth.
The statement emphasised the government’s commitment to transparent and accountable governance, with a focus on optimising asset management to unlock revenue potential.
President Tinubu highlighted the importance of attracting alternative investment capital through innovative partnerships and ensuring improved returns on investments. He underscored the significance of directing these returns towards essential sectors such as education, healthcare, infrastructure, and job creation to alleviate poverty and stimulate sustainable economic development.
NSA Boss Orders …Despite the government’s efforts to curb exchange rate volatility through crackdowns on currency speculators, the naira continued its downward trajectory. Reports indicated that despite raids on Bureau De Change (BDC) hubs in major cities like Abuja, Lagos, and Kano, the naira depreciated further, with rates reaching 1,900 per dollar in Abuja and Kano, and 1,800 per dollar in Lagos.
The National Security Adviser, Nuhu Ribadu, issued directives to various law enforcement agencies, including the Nigeria Police Force, the Economic and Financial Crimes Commission (EFCC), the Nigeria Customs Service (NCS), and the Nigeria Financial Intelligence Unit (NFIU), to intensify efforts to curb forex market speculation. The move aimed to safeguard the stability of the foreign exchange market and counter the activities of speculators undermining the Central Bank’s measures.
Ribadu emphasised the collaborative approach between security agencies to identify and penalise individuals and organisations involved in illicit activities within the foreign exchange market. Security operatives were deployed to conduct raids on unlicensed BDC operators in Lagos, Abuja, and Kano, resulting in multiple arrests.
Despite these measures, experts raised concerns about the effectiveness of such crackdowns, suggesting the need for alternative strategies to address exchange rate volatility and promote economic stability.
