Another policy implemented by the CBN is the limit placed on
the repatriation of proceeds by international oil companies due to its impact
on FX liquidity.
The minister said the government is not under any illusion
that the policy moves are silver bullets, or that nothing extra is required.
“We understand that these are foundational fiscal and
monetary policy moves, upon which we must now build the superstructure of true
economic growth and prosperity,” Idris said.
“As respected
economists and experts have acknowledged, these foundational reforms will be
difficult and painful for Nigerians in the short-term.
“At the same time, there is the consensus that they are
inevitable, given just how much they have held back robust and lasting economic
growth.
“The problems that we are solving are no doubt multifaceted,
intertwined, and deep-rooted, requiring creative, strategic, decisive, and
multi-pronged solutions.”
He said the bold moves being implemented are in full
alignment with what is required.
“The CBN has been
proactive, initiating a comprehensive strategy to enhance liquidity in the
forex market,” Idris said.
“In addition to unifying the rates, the bank has also
cleared a significant amount of outstanding Forex obligations, and outlined new
operational mechanisms for commercial banks, Bureau De Change (BDC) operators
and International Money Transfer Operators (IMTOs).
“It is heartwarming to note that we are starting to see the
results. Indeed, the naira is stabilizing, and the foreign exchange market is
seeing a surge of inflows.
“The latest NBS figures show that capital importation into
Nigeria rose by over 66 percent in Q4 2023, compared with the preceding
quarter.
“The CBN Governor has also highlighted the fact that $1.8
billion flowed into the forex market last week, on the back of the new
reforms.”
“Sadly, as with any effort to reform and sanitise a system
entrenched in long-term malpractice, the CBN’s efforts have been met with
ferocious resistance from speculators and other unscrupulous players within and
outside our country, who profit from dysfunction and opacity.”
To combat this, he said government regulatory and
enforcement agencies have been working around the clock in recent days, joining
forces to address these efforts to undermine the reforms.
Idris said the strategic alliance resulted in
intelligence-led identification, investigation and sanctioning of individuals
as well as organisations involved in illegal activities and sabotage within the
forex market.
“Relevant regulatory and security agencies have been
directed to remain vigilant to ensure that malpractices capable of undermining
our currency are averted and that those engaged in these acts are brought to
book. The government will not allow its efforts to be jeopardised,” he said
‘EMERGING STABILITY
OF NAIRA IN INTEREST OF ALL NIGERIANS’
Idris said the emerging stability of the naira is in the
interest of all Nigerians and more steps will be taken to stabilise the
currency.
“Nigerians should rest assured that the government will
continue to take further steps to stabilize the naira and safeguard our economy,”
he said.
“We will continue to seek the patience and understanding of
Nigerians as we push through these difficult times, into a season of abundant
benefits and truly renewed Hope.”
Idris said the current challenges the country is facing are
only temporary, and, collectively, they will be surmounted.
