Dipo Olowookere
By Dipo Olowookere
In recent times, there have media reports about the inability of foreign portfolio investors (FPIs) to repatriate their funds.
This issue concerning difficult in forex repatriation, according to observations, has forced some of those affected to reinvest their money in local securities like bonds, OMO bills and stocks.
The reason behind this was the suspension of foreign exchange (forex) sales to the Investors and Exporters (I&E) window of the market, where FPIs buy Dollars for repatriation.
Worried by this, the Central Bank of Nigeria (CBN) has asked investors not to panic, but be patient as such repatriations are processed, owing to its policy of orderly exit of investments.
Governor of the CBN, Mr Godwin Emefiele, who made this appeal, assured investors of the security of their investments in the country despite dwindling revenue from the sale of crude oil globally.
He said investors interested in repatriating their funds from the country were guaranteed to get their money, notwithstanding the drop in the revenue from crude oil.
The bank chief, who spoke at the weekend in Abuja, noted that the CBN has put in place policies to ensure an orderly exit for those that might be interested in doing so.
Recalling a similar in 2015 over declining revenue, Mr Emefiele said that the CBN was able to settle all commitments in an orderly manner.
According to the Governor, the foreign exchange available would be devoted to strategic importation or service obligations that are priority.
Mr Emefiele, while commenting on the CBN’s plans in tackling the economic impact of the COVID-19, stated that efforts are being made to galvanise the manufacturing sector in a bid to reset the economy.
With the revenue drop from crude, the CBN Governor said Nigeria had no choice but to diversify its economic base.
He said the time had come for Nigerians to produce what can be produced in the country and consume what is produced in the country.
According to him, there is an ongoing collaboration between the CBN and the Federal Ministry of Industry, Trade and Investment to support local production.
He said the CBN has met with the banks, manufacturers in the health sector and the larger manufacturing group to make things work.
According to him, he COVID-19 presented Nigeria with an opportunity to reset the economy and as such there was need for the country to prepare itself to get the manufacturing sector to work, while the banking sector supports the economy.
Mr Emefiele emphasised that the challenge posed by the pandemic necessitated that, as leaders, the fiscal and monetary authorities must work together to moderate the health and economic impact of the COVID-19.
