Tinubu seeks $10bn to stabilise exchange rate as Naira slumps

President Bola Tinubu on Tuesday made public the plan of his government to raise $10bn to improve liquidity in the foreign exchange market.

This is as the Naira fell to an all-time low of 1,850 per dollar at the parallel market.
The President, who was represented by Vice President Kashim Shettima, made the disclosure at the inaugural Public Wealth Management Conference in Abuja.

The Ministry of Finance Incorporated organised the event with the theme “Championing Nigeria’s Economic Prosperity.”

The Senior Special Assistant to the President on Media & Communications, Stanley Nkwocha, in a statement, explained, that “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.

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“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 President further noted that transparency and accountability are key principles that must be pursued, believing that improved corporate governance, innovative partnerships, and attracting alternative investment capital would significantly increase returns.

He added that these 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.”

Nigeria has been battling with a lingering forex shortage due to a decline in oil production and foreign inflows.

Data from FMDQ Securities, a platform that oversees foreign exchange trading in Nigeria, noted that the local currency hit an intra-day trading high of 1,701/$ and a low of N1,100 before closing at N1,551/$ on Tuesday.

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