Minister Stirs Hope in Nigerians With FG's Plan to Stabilise Naira
- The Federal Government is taking bold steps to ensure the stability of the naira against other major currencies.
- The minister of information disclosed that the government is undertaking macroeconomic plans to tackle forex volatility
- He said the reforms will bring down inflation, ease the cost of living, stabilise foreign exchange and create jobs
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Legit.ng journalist Victor Enengedi has over a decade's experience covering Energy, MSMEs, Technology and the stock market.
In response to the continuous decline of the Naira in the Foreign Exchange (Forex) market, the Federal Government has pledged to undertake macroeconomic reforms to restore stability.
Mohammed Idris, the Minister of Information and National Orientation, conveyed this commitment during the 2024 Press Week of the Niger State Chapter of the Nigeria Union of Journalists (NUJ) in Minna on Saturday.
Idris emphasised the government's intent to enact reforms geared towards enhancing economic growth, controlling inflation, alleviating the cost of living, and stabilising the foreign exchange market.
Source: UGC
In the last few months, the naira has experienced a notable decline in both the official and unofficial foreign exchange rates.
It reached its record decline last week when it exchanged for about N1,400/$ in the official market and over N1,500/$ in the parallel market.
However, with essential reforms and policies introduced by the Central Bank of Nigeria, a significant improvement in the value of the naira was realised at the end of the week.
FG's reforms to stabilise the naira
The Minister, represented by Mallam Jibrin Baba Ndace, the Director-General of the Voice of Nigeria, expressed optimism about the upcoming year.
According to The Nation, the minister cited numerous promising initiatives set in motion by the administration.
Emphasising the potential of 2024, he highlighted the positive impact anticipated from President Bola Tinubu's policies under the Renewed Hope Agenda, expecting a substantial and enduring contribution to the growth of the nation's economy.
He said:
“The Tinubu administration will continue to implement macroeconomic reforms to achieve broad economic objectives of sustained economic growth.
“The reforms will bring down inflation, ease the cost of living, stabilise foreign exchange and create jobs, among others.”
In light of eliminating fuel subsidy, liberalising the foreign exchange regime, and the ongoing efforts to combat corruption, Idris emphasised that the Tinubu administration is demonstrating a commitment to upholding the rule of law.
Nnamdi Nwachukwu, chief economist at Woodpecker Investment, said that the federal government would have to do more than give Nigerians assurances.
In a chat with Legit.ng, Nwachukwu said that although the CBN is moving in the right direction with its recent reforms, emphasis must be laid on making the economy more viable enough to attract forex.
He said:
The federal government should focus on reforms that would make the economy more producer/export-based, rather than excessive importations. This is how to increase the value of your currency.
ABCON makes new proposal to CBN to save naira
Meanwhile, Legit.ng reported that Aminu Gwadebe has called on the CBN to harness the strengths and extensive network of Bureau De Change (BDC) operators in a strategic effort to enhance the stability of the Nigerian naira.
Gwadebe, the president of the Association of Bureau De Change Operators of Nigeria (ABCON), said that allowing BDCs to play a more active role in the economy could be instrumental in addressing these challenges.
Gwadebe also highlighted the significance of recognising and leveraging the unique network of BDC operators.
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Source: Legit.ng
