Nigeria: CBN Implements Comprehensive Strategy to Tackle Forex Crisis, Says Cardoso

In the face of challenges stemming from a scarcity of dollars, the Central Bank of Nigeria (CBN) has assured the public that it has enacted strategies to address the situation.

CBN Governor, Yemi Cardoso, provided this reassurance on Tuesday during the resumption of the sectoral debate series organized by the House of Representatives.

While acknowledging the high cost of living in the country, Cardoso highlighted that Nigeria’s economy is in a better state compared to when President Bola Tinubu assumed office from Muhammadu Buhari on May 29, 2023.

“To tackle exchange rate volatility, a comprehensive strategy has been put in place to boost liquidity in the foreign exchange markets. These measures include unifying foreign exchange market segments, clearing outstanding FX obligations, introducing new operational mechanisms for Bureau De Change (BDC) operators, enforcing the Net Open Position limit, and adjusting the remunerable Standing Deposit Facility cap,” Cardoso stated.

Despite recognizing the challenges facing the economy, the CBN governor expressed confidence in the ongoing reforms, emphasizing that they are aimed at addressing these issues sustainably.

“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,” he added.

Cardoso also highlighted recent reports from international rating agencies and multilateral banks, such as Fitch, Moody’s, S&P, and the World Bank, which have acknowledged Nigeria’s positive trajectory. These reports recognize the potential for growth and development unlocked by the country’s reform efforts, despite the initial adjustments.

Minister of Finance and Coordinating Minister of the Economy, Wale Edun, echoed Cardoso’s sentiments, assuring Nigerians that normalcy would return soon with crude oil production reaching 1.65 million barrels per day and the implementation of government palliatives.

“We must focus on domestic resource mobilization. While inflation has increased and the cost of living is high, palliatives have been rolled out. We will get there, no doubt,” Edun affirmed.

The sectoral debate also saw presentations from Minister of Budget and National Planning, Atiku Bagudu, and Chairman of the Federal Inland Revenue Service, Zacch Adedeji.