Nigeria Shops for $10bn to Increase FX Liquidity for Strong Naira

February 20, 2024
Increase FX Liquidity

By Dipo Olowookere

The Nigerian government is looking to raise at least $10 billion from various sources as part of its effort to increase foreign exchange (FX) liquidity to strengthen the Naira in the currency market.

The Naira has been on a free fall in the past few months as the nation battles with a shortage in forex supply due to a decline in crude oil production, which the country relies heavily on for FX earnings.

At the parallel market on Tuesday, the Nigerian currency weakened against the US Dollar to N1,820/$1, raising fears that it could crumble to N2,000/$1 in the coming days or weeks.

Speaking on Tuesday in Abuja at the inaugural Public Wealth Management Conference organised by the Ministry of Finance Incorporated (MOFI), Mr Tinubu disclosed that his administration was looking to raise $10 billion, including from the sale of public assets, to defend the domestic currency.

“The federal government set a goal to raise at least $10 billion to increase foreign exchange liquidity, a key ingredient to stabilise the Naira and grow the economy.

“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 (gross domestic product) growth rate and significantly increase the GDP base over the next 8 years,” Mr Tinubu, who was represented by the Vice President, Mr Kashim Shettima, stated.

He also hinted at the event themed Championing Nigeria’s Economic Prosperity of his administration’s desire to create millions of jobs by unlocking the value of Nigeria’s vast public assets.

President Tinubu, however, assured that the newly restructured Ministry of Finance Incorporated, which is to act as custodian and active manager of these assets, would now take centre stage.

Dipo Olowookere

Dipo Olowookere is a journalist based in Nigeria that has passion for reporting business news stories. At his leisure time, he watches football and supports 3SC of Ibadan.

Mr Olowookere can be reached via [email protected]

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