FG to India: We are removing impediments to Forex

The Federal Government is in the process of removing major macroeconomic impediments to the stability of the foreign exchange (forex) rate, inflation, interest rates, liquidity and access to adequate finance.

In a new acceleration of the President Bola Tinubu’s monetary and fiscal reforms, the government is also finalizing key initiatives aimed at freeing the macroeconomic environment from legacy constraints, with a view to enhancing Nigeria’s attractiveness as a global destination for investments.

Tinubu had launched major fiscal and monetary reforms, including the abolition of multiple forex rates, removal of forex restrictions and streamlining investment approval process.

Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, said the process for the removal of identified obstacles to a stable and liquid macroeconomic environment was almost being completed.

“The major macroeconomic impediments to the stability of the exchange rate, of inflation, of interest rates and indeed of obstacles to liquidity, to enough financing, are now in the process of being removed,” Edun said.

The pronouncement came as the naira recorded its largest gain at the forex market, closing at N722 per dollar, the strongest rate since June 2023 when the Central Bank of Nigeria (CBN) unified multiple exchange rates.

Speaking on the sidelines of the Group 20 (G20) Summit in India yesterday, the minister expressed Nigeria’s perspective and commitment to building a stronger, sustainable, and resilient economy.

He pointed out that while government had taken steps to improve the business environment through the removal of forex restrictions and streamlining of the investment approval process, it would soon deepen the reforms with another round of comprehensive initiatives to stabilise the macroeconomic outlook.

“Our focus is on attracting global capital, promoting foreign direct investments and this underscores our commitment to job creation, economic diversification, and revenue expansion,” Edun added.

He urged investors to take advantage of the opportunities that Nigeria has offered, stressing that Nigeria is an attractive destination for business, brimming with opportunities across the various sectors.

Edun said government’s reforms will also drive inclusivity by including women and young people in what is going on in the economy and having them play their role.

“For those interested in investing, the playing field has been levelled, it has been cleared of debris and the opportunity is now there for you to seize,” Edun told Indian and other global investors.

The naira recovery has been attributed to announcement by the CBN Acting Governor, Folashodun Shonubi that forex backlogs will be cleared in two weeks.

The uptick in crude oil prices have also helped naira recovery at the official market.