In the face of mounting challenges posed by the scarcity of dollars, the Central Bank of Nigeria (CBN) has moved to allay fears by announcing a comprehensive strategy to combat the situation.
Yemi Cardoso, the Governor of the CBN, delivered this assurance on Tuesday during the resumption of the sectoral debate series organized by the House of Representatives.
Addressing the gathering, Cardoso expressed concern over the soaring cost of living in the nation.
However, he pointed out that despite the hurdles, Nigeria’s economy presently stands in a better state compared to when President Bola Tinubu assumed office from Muhammadu Buhari on May 29, 2023.
“To address exchange rate volatility, a comprehensive strategy has been initiated to enhance liquidity in the foreign exchange markets.
These include unifying foreign exchange market segments, clearing outstanding FX obligations, introducing new operational mechanisms for BDCs, enforcing the Net Open Position limit, and adjusting the remunerable Standing Deposit Facility cap,” Cardoso outlined.
While acknowledging the existing economic challenges, the CBN governor stressed that the country is at a turning point.
He emphasized that the ongoing bold reforms across various sectors are geared towards sustainable solutions.
“I am confident that positive outcomes are already emerging and will become more apparent in the near future. The dedicated and relentless efforts being made are certain to bring about significant and positive changes for our economy,” Cardoso added.
Furthermore, Cardoso highlighted recent reports from international rating agencies such as Fitch, Moody’s, S&P, and commendations from multilateral banks like the World Bank.
These reports have acknowledged Nigeria’s positive trajectory, with upgrades in ratings from stable to positive.
They also recognize the potential reversal of the deterioration in the country’s fiscal and external positions due to the ongoing reform efforts.
In addition to Cardoso’s remarks, Wale Edun, the Minister of Finance and Coordinating Minister of the Economy, assured Nigerians of a forthcoming return to normalcy.
Edun pointed out that with crude oil production hitting 1.65 million barrels per day (mbd) and the implementation of palliatives by the Federal Government, there is hope on the horizon.
“We have to focus on domestic resource mobilization. Yes, inflation has increased and the cost of living is high, but palliatives have been rolled out. We will get there, no doubt,” Edun affirmed.
The event also featured presentations by Atiku Bagudu, the Minister of Budget and National Planning, and Zacch Adedeji, Chairman of the Federal Inland Revenue Service, underscoring the government’s commitment to tackling economic challenges head-on.
