By Chika Amanze-Nwachuku in Washington D.C.,USA
The duo noted that the Nigerian government has introduced bold financial reforms, including the unification of exchange rates and the removal of fuel subsidies, noting that though challenging, these reforms are necessary steps in restructuring the economy for sustainable growth.
Edun noted: “Clearly, a situation where interest rate has gone up, we expect that there would be more interest in local currency instruments.
“Something else that is important in these whole adjustments in the Nigerian economy is the fact that Nigerians would be more inclined to produce locally because it is a lot cheaper for them to do so, rather than depend on imported goods.”
Speaking further, the CBN Governor hinted that Nigeria’s external reserve has risen to $40.2 billion as of October 18, 2024.
Cardoso also disclosed that the apex bank’s efforts to attract more remittances from Diaspora Nigerians were yielding the desired results with the current monthly remittances hitting $650 million.
He said the CBN is on the verge of attaining its target of $1 billion in remittances monthly.
The CBN boss also provided further insights on exchange rate harmonization.
:Yesterday (Tuesday), we engaged those in the diaspora to ensure that process continues. There are also positive outcomes to Nigerians.”
Cardoso disclosed that the Nigerian Inter-Bank Settlement System (NIBSS) would by December launch a Bank Verification Number (BVN) platform for Nigerians in the diaspora.
“In 2015 or so, we were at 2.3 million barrels a day. So, it’s a very reachable target, which the whole ecosystem, the government, and the oil sector, are committed to administering the process that has been improved and will allow speedier implementation of investments.
“The subsidy removal, the fact that the petrol subsidy and the related foreign exchange subsidy are removed means that you can expect, and we will see, a flow of funds into the government coffers. We know that there’s still a demand for foreign exchange”, he said.
“In terms of fiscal performance, where we met things was huge debt servicing, costing nearly 100 per cent of revenue and deficit of 6.5 per cent. We got it down so far in the first half of this year, and the debt service to around 60 per cent of revenue, which is still high, but we’re coping with it.
“And by prioritisation, and in terms of the other aspects of fiscal policy, the budget deficit is down to around 4.4 per cent of GDP as of first half of 2024. The target for the year is four per cent, and we are still hopeful of achieving that.”
He added, “It is the overall macroeconomic reset to stop the haemorrhaging and then build up the revenues and add investments. That is the overall strategy of getting Nigeria, once again on the path to rapid, sustained, and inclusive growth, which is the president’s strategy, his objective and his commitment”, the CBN chief added.