Nigeria’s Minister of Finance, Wale Edun, and Central Bank Governor, Olayemi Cardoso, have assured foreign investors that the country’s economy is on the path to recovery.
Speaking at the IMF/World Bank Annual Meetings in Washington DC, they highlighted the federal government’s reforms aimed at restoring confidence in the economy.
The officials noted that the removal of subsidies has resulted in improved revenue mobilization, according to ThisDay.
The government has committed to raising oil production to two million barrels per day, which is expected to boost revenue.
Additionally, the budget deficit has decreased to 4.4% of GDP, with a target of 4% by the end of 2024.
Cardoso disclosed that the Nigerian Inter-Bank Settlement System will launch a Bank Verification Number platform for Nigerians in the diaspora by December.
This initiative aims to enhance financial inclusion and accessibility, allowing Nigerians abroad to operate their local bank accounts remotely.
The International Monetary Fund has advised Nigeria and other African countries to prioritize tax system reforms.
The IMF recommends making tax systems more efficient, equitable, and progressive to support economic growth.
Edun emphasized President Bola Tinubu’s commitment to protecting the poorest and most vulnerable through Value Added Tax reforms. The reforms will raise VAT for luxury goods while exempting essentials.
The CBN’s banking sector recapitalization efforts aim to strengthen the financial system and promote stability. Deputy Governor Muhammad Sani Abdullahi highlighted the importance of institutional reforms, price stability, and market credibility.
Nigeria’s economic performance has shown positive signs, with revenue mobilization improving and debt servicing reduced. The government remains committed to its economic recovery strategy, focusing on investments, tax reforms, and social protection.
“Confidence has returned to the market and there is also confidence by Nigerians in their currency.
“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.”
Cardoso added, “Concerning the harmonisation of rates, bear in mind that for those who are used to sending money to Nigeria, they no longer have to find other unorthodox methods of sending their monies home. I particularly refer to remittances from the diaspora. That is why we have had a major uptick in that level of inflow.
“Yesterday (Tuesday), we engaged those in the diaspora to ensure that process continues. There are also positive outcomes to Nigerians.”
Responding to a question as to whether the Monetary Policy Committee (MPC) at its last meeting took cognisance of the latest fuel price increase, Cardoso said, “The answer to that is, yes. We had to do so because we predicted that situations would get a little bit more sticky and to moderate the effects of that we decided to increase interest rate.”
