Home Nigeria Nigeria’s currency crises to be chipped at with a $10 billion fund

Nigeria’s currency crises to be chipped at with a $10 billion fund

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The Nigerian government has revealed plans to address its ongoing currency challenges by seeking $10 billion in funding. In a nutshell, the plan is to bolster liquidity in the foreign exchange market, in light of the Nigerian Naira’s devaluation to a historic low of N1850/$1. The government intends to raise this fund, alongside plans to properly manage its assets and as a result, solve some of Nigeria’s economic challenges.

Nigeria aims to raise $10 billion to enhance liquidity in the foreign exchange market.
  • The government emphasized proper asset management to tackle economic challenges and stabilize the Naira.
  • They also mentioned that transparency and accountability are pivotal for maximizing returns and funding key sectors like education and healthcare.

The Punch newspaper reported that the announcement was made by Vice President Kashim Shettima, who spoke on behalf of President Bola Tinubu, during the inaugural Public Wealth Management Conference held in Abuja, the capital city, on Tuesday.

This idea was also elaborated on by the Senior Special Assistant to the President of Media & Communications, Stanley Nkwocha in a statement on Tuesday.

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

He also noted that proper management of assets is paramount in growing the country’s GDP.

“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 Senior Special Assistant said.

Transparency and accountability are the pain points the president touched on noting that these principles are key to increasing the country’s returns via improved corporate governance, innovative partnerships, and free-flowing investment capital.

These increased returns would be used for “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,” according to the president.

On Monday., it was reported that the Naira which has been in a freefall since the year began crossed the 2000 mark against the British Pound, at which point the Naira was trading at N1,673/$1.

Even though the country’s Economic and Financial Crimes Commission had disrupted the Bureau de Change operators, in Abuja and arrested 50 illegal operators, in less than a day from Monday, the Naira jumped to N1,850 per dollar, causing an even louder uproar in the forex market.

The Nigerian currency has simply failed to catch a break since the president of the country floated the currency and eliminated fuel subsidies.

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