The multiple exchange system in Nigeria and its inherent volatility discourage significant economic investment in Nigeria.
This was disclosed in Nigeria’s Integrated National Financing Framework (INFF) a report commissioned by the Federal Republic of Nigeria, UNDP, World Bank, and the IMF.
The report cited numerous challenges making it difficult for the country to raise money for its development priorities, which could thus hinder its capacity to meet the SDGs.
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According to President Buhari who also signed the document, the INFF is seen as a tool to improve SDG financing without increasing public debt and contingent liabilities to levels that will be detrimental to economic sustainability.
“The Integrated National Financing Framework (INFF) has been developed to map out a much-needed sustainable financing plan for Nigeria to deliver on our commitments and aspirations to attain the United Nations’ Sustainable Development Goals (SDGs) by the year 2030.”
According to the report, the multiple exchange rate system is a significant obstacle to doing business in Nigeria.
“The multiple exchange rate system and limited access to foreign exchange is a significant obstacle for businesses to operate. This exchange rate system and its inherent volatility deter investments in Nigeria.”
“Another excerpt of the report, also included the multiple exchange rate among other factors that have been a bane to the economy.
“In addition to the economics of oil, various other factors have contributed to this slow growth, including restrictive trade policies, regulatory bottlenecks, delays in passage of legislative reforms, an inefficient property registration system, a slow and ineffective judicial system, unreliable dispute resolution mechanisms, multiple foreign exchange rates, and the use of Central Bank financing