Naira Reacts as FG Clears COVID-19 IMF Loan, Eurobond and ‘Ways and Means’ Advances

• The Nigerian government has confirmed the full repayment of its foreign exchange forwards, a $1.5 billion Eurobond, and N30 trillion in Ways and Means advances to the Central Bank
• Dr Tope Fasua, representing Vice President Shettima, said 2024 marks Nigeria’s strongest economic year in a decade, with rising reserves, trade surplus, and an expected decline in inflation
• The CITN President, Samuel Agbeluyi, praised the government’s tax reforms but stressed that effective implementation is key to lasting economic solutions

Legit.ng journalist Zainab Iwayemi has 5-year-experience covering the Economy, Technology, and Capital Market

Nigeria's foreign exchange forwards and other financial obligations have been paid off, a statement from the federal government has confirmed.

The government has also paid N30 trillion in Ways and Means advances to the Central Bank of Nigeria (CBN), according to Dr Tope Fasua, who spoke on behalf of Vice President Kashim Shettima at the 27th Annual Tax Conference of the Chartered Institute of Taxation of Nigeria (CITN) in Abuja.

Furthermore, every debt, including a Eurobond for $1.5 billion, has been repaid in full.

He described 2024 as Nigeria’s strongest economic year in a decade. “Inflation remains sticky but is projected to head southwards in the coming months, as food prices, foreign exchange, and other key drivers have remained stable,” he said.

He noted that Nigeria’s rebased Gross Domestic Product (GDP), last updated in 2014, will soon be released, reflecting significant economic growth and boosting investor confidence.

Fasua highlighted key achievements, stating:

“In the year 2024, we saw a scenario where Nigeria’s balance of payments surplus hit $6.8 billion, our trade surplus was at $16 billion, net foreign reserves grew by $20 billion, and we also got news recently that Nigeria has repaid in full the principal of $3.4 billion borrowed for emergency purposes during the COVID-19 era, from none other than the International Monetary Fund.”

Nigeria's economic, security, and social problems were previously acknowledged by CITN President Samuel Agbeluyi, who emphasised the pressing need for long-term solutions.

He commended the Tinubu administration's initiatives to promote socio-economic growth through an efficient tax system, especially those of the Presidential Committee on Fiscal Policy and Tax Reforms.

Agbeluyi noted,

“This legislative effort is certainly commendable; however, no matter how well-designed a policy or law may be, its success ultimately depends on the quality of its implementation.”

He highlighted the proposed introduction of tax agents in a bill awaiting Senate approval, which would serve as intermediaries between taxpayers and revenue authorities, emphasising the critical role of tax professionals.

Naira records big gain across all market

Legit.ng repoted that on Monday, 12th May, the value of the naira increased by N5.72 across all foreign currency (FX) markets.

According to data from the Central Bank of Nigeria (CBN), the dollar was quoted at N1,600.43, up 0.4% from N1,606.15 on Friday at the Nigerian Foreign Exchange Market (NFEM).

Consistent inflows helped to sustain the growth, with exporters and non-bank financial institutions accounting for 62.

Source: Legit.ng