Federal Government Seeks $10bn to Stabilize Exchange Rate as Naira Tumbles

The Nigerian Federal Government is planning to raise $10bn to improve liquidity in the foreign exchange market.

On Tuesday, the naira fell to an all-time low of 1,850 per dollar at the parallel market.

President Bola Tinubu, who was represented by Vice President Kashim Shettima, disclosed this at the inaugural Public Wealth Management Conference in Abuja on Tuesday.

The Ministry of Finance Incorporated organised the event with the theme “Championing Nigeria’s Economic Prosperity”.

In a statement on Tuesday, the Senior Special Assistant to the President on Media & Communications, Stanley Nkwocha explained that the Federal Government set a goal to raise at least $10bn to increase foreign exchange liquidity, a key ingredient to stabilise the naira and grow the economy.

The President further emphasised transparency and accountability as key principles, believing that improved corporate governance, innovative partnerships, and attracting alternative investment capital would significantly increase returns.

He noted that these improved returns will then be directed towards “crucial funding for education, healthcare, housing, power, roads and other areas vital to lifting millions out of poverty and stimulating sustainable economic development and job creation for the youth”.

Currency traders in Abuja quoted the buying price of the dollar at 1,820/$ and the selling price at 1,850/$, leaving a profit margin of 30.

However, the naira appreciated by 1.48 per cent to 1,551/$ at the official market, following an improved forex turnover of $117.32m.

This came after the local weakened for three consecutive days at the Nigerian Autonomous Foreign Exchange.