Nigeria targets $10bn to increase FX liquidity to stabilise naira

The Nigerian government has announced plans to raise at least $10 billion in order to increase foreign exchange liquidity, which will, in turn, stabilise the naira.

President Bola Ahmed Tinubu, represented by Vice President Kashim Shettima, revealed this plan at the inaugural Public Wealth Management Conference organized by the Ministry of Finance Incorporated (MOFI) on Tuesday.

The conference, themed “Championing Nigeria’s Economic Prosperity,” focused on optimising the management of government-owned assets worth trillions of naira.

The government also hinted at plans to create millions of jobs by unlocking the value of Nigeria’s vast public assets with a view to optimising and doubling the country’s Gross Domestic Product (GDP).

“The Federal Government set a goal to raise at least $10 billion in order to increase foreign exchange liquidity, a key ingredient to stabilise the naira and grow the economy,” Shettima stated, while reading the President’s Keynote address.

“At the core of this is ensuring optimal management of the assets and investments of the Federal Government towards unlocking their revenue potential. This includes our bold and achievable plan to double the GDP growth rate and significantly increase the GDP base over the next 8 years.”

Shettima noted that decades of underutilization and mismanagement have hampered revenue generation from public assets, stating that FG intends to rectify this by actively managing these assets through the Ministry of Finance Incorporated (MOFI).

The vice president stated transparency and accountability as key principles, believing that improved corporate governance, innovative partnerships, and attracting alternative investment capital will 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.

This initiative is about creating inclusive and sustainable growth, not just revenue generation, and that by efficiently managing public resources, the government hopes to build a more equitable society and realise its citizens’ full potential, according to Shettima.

The Presidency therefore called for collaboration between stakeholders, including ministries, development financial institutions, and both public and private sector players, to partner with MOFI in optimising these strategic assets.