*FX inflows in Q1, 2024 reached 136% of total 2023 inflows, says Cardoso
Chigozie Amadi
Vice President Kashim Shettima yesterday announced that the administration of President Bola Tinubu had successfully secured potential investments worth more than $20 billion.
Also, the Governor of the Central Bank of Nigeria (CBN) Olayemi Cardoso noted that the foreign exchange (FX) inflows recorded in the first quarter (Q1) into Nigeria was 136 per cent of the total inflows recorded in 2023.
Cardoso also restated that the CBN was dedicated to maintaining a transparent and functional FX market where price discovery is guided by market-driven frameworks, explaining that the approach will lead to the long-term stability of the naira.
Both the vice president and the CBN governor spoke at the Vanguard Economic Discourse themed: ‘’Reforms in the Era of Global Economic Uncertainties: Whither Nigeria’’, in Lagos.
Shettima who was represented by the Special Adviser on Economic Affairs, Tope Fasua, detailed that Tinubu had facilitated investments to the tune of $14 billion from India and $250 million from the Netherlands.
He also mentioned a recent commitment of $500 million for lithium development in Nasarawa State and another $500 million from Germany for renewable energy projects.
He said: “Mr. President has been able to secure more than $20 billion in potential investments into the country, including $14 billion from India, $250 million from the Netherlands, and commitments of $500 million for lithium development in Nasarawa State.
“There is another $500 million from Germany into renewables and the Siemens power sector projects are picking up speed and will positively impact our energy sufficiency in due course.”
Shettima emphasised the administration’s openness to ideas and its willingness to refine policies to avoid undue hardship for Nigerians.
He added: “Our government has always maintained that we don’t know it all. We are a determined government open to ideas and the refinement of well-meaning members of society.
“We are not afraid to backtrack and review if a policy will impose undue hardship on Nigerians. This administration is not out to make the lives of Nigerians suffer but to make Nigeria’s economy sustainable and the lives of our people more enjoyable.”
Looking ahead, Shettima expressed optimism about the future, promising positive achievements, improved standards of living, higher productivity, and enhanced food security in the coming years.
Also, speaking on the FX reforms, Cardoso who was represented by the Director of Risk, CBN, Blaise Ijebor reiterated that the recent reforms had seen an uptick in inflows into Nigeria compared to the previous year.
He said: “We remain committed to using all the orthodox monetary policy tools available to us to address inflation. We have also embarked on major reforms to liberalise the foreign exchange market, which has enhanced transparency, reduced arbitrage opportunities promoted stability, and improved the liquidity in the market.
“The settlement of all valid FX forwards which was one of my commitments when I came on as governor of the CBN, has also improved the confidence of stakeholders. We are already seeing the result of these reforms in the growth of FX flows into the country.
“The FX flows into the country in Q1 of 2024 was 136 per cent of the total inflows that we had in the whole of 2023.”
Furthermore, he noted that he remains committed to repositioning the central bank to deliver meaningful data-driven and sustainable solutions with clear positives for all Nigeria.
“We continue to be committed to a transparent and functional FX market where price discovery is based on market-driven frameworks and we are confident that this will lead to long-term stability of the naira which I know is what all of us seek.
“We are confident that a good implementation of our reform programme will restore the economy to the path of inclusive and accelerated economic growth in the near term.
“I won’t lie but much more work is required to address our economic challenges, but let me assure you that the CBN is committed to and will continue to enhance its effort to deliver on its mandate of promoting monetary and price stability in Nigeria,” Cardoso said.
He added that under his stewardship the CBN was committed to implementing bold reforms to ensure the economy benefits all Nigerians.
“We have initiated a tightening of the bank’s monetary policy to address inflationary pressures on the economy. I am confident that the results will become apparent in the near term.
“Fortunately, we are already witnessing a deceleration in inflation, as evidenced by the decline in month-on-month growth in headline and food inflation.
“In addition, we are all working to address the challenges in the Bureaux De Change (BDCs) segment. To this end, we have developed and revised regulatory and supervisory guidelines for BDC operations in Nigeria.
“ This is aimed at ensuring that BDCs play the right role that they have been envisioned to play in the foreign exchange market. In addition, we have also revoked the license of BDCs who we have established and have been involved in unwholesome practices.
“Also, we continue to be focused on increasing the flows of diaspora remittances into the economy via official channels to improve liquidity to the foreign exchange market,” he added.
