The federal government has disclosed that $1.8 billion entered the foreign exchange market last week as a result of its recent economic reforms. The reforms, including the removal of the petrol subsidy and the move towards a unified exchange rate, have demonstrated significant positive outcomes under President Bola Ahmed Tinubu’s leadership.
Minister of Information and National Orientation, Muhammed Idris, shared in a statement in Abuja that since the petrol subsidy removal, petrol importation has decreased by 50%, equivalent to one billion liters monthly. The government sees these outcomes as encouraging signs of the effectiveness of the ongoing reforms.
Idris highlighted that the naira is stabilizing, and the latest figures from the National Bureau of Statistics (NBS) indicate a 66% rise in capital importation into Nigeria in Q4 2023 compared to the preceding quarter. Additionally, crude oil production has increased steadily to an average of 1.55 million barrels per day in Q4 2023, up from 1.22 million barrels per day.
President Tinubu’s commitment to a unified exchange rate has been recognized, emphasizing transparency and equity in monetary policy. The Central Bank of Nigeria (CBN) has implemented changes to foreign exchange rates, allowing market-driven rates based on the principle of ‘willing seller, willing buyer.’
While acknowledging the challenges and short-term pains associated with foundational fiscal and monetary policy moves, Idris emphasized the necessity of these reforms for robust and lasting economic growth. He stated that respected economists and experts recognize the difficulty of these reforms but consider them inevitable.
To enhance liquidity in the forex market, the CBN has initiated a comprehensive strategy, unifying rates and clearing outstanding Forex obligations. Despite resistance from speculators and unscrupulous players profiting from dysfunction and opacity, the government remains committed to reform.
Idris assured Nigerians that the government, along with regulatory and enforcement agencies, is actively working to identify, investigate, and sanction individuals and organizations involved in illegal activities and sabotage within the forex market. He emphasized the government’s determination to ensure the stability of the naira and safeguard the economy, urging citizens to trust that further steps will be taken in the interest of all Nigerians.
