Friday, 8th December 2023

‘FX market reform critical to enhancing currency stability, inflation’

By Gloria Nwafor
29 June 2023   |   1:56 am
The Institute of Chartered Secretaries and Administrators of Nigeria (ICSAN) said the reforms in the foreign exchange (FX) market are critical to enhancing the nation's currency stability and also combat inflation.

L-R Oladunni Ogunsulire Deputy Registrar Academics, FCIS , Mr. Taiwo Gbenga Owokalade FCIS President and Chairman of Council , Mrs. Lynda Onefeli, FCIS Chairman Publicity Committee , and Mrs. Yvette Okwesi, FCIS member Publicity Committee at the second Presidential Press Parley of the Institute of Chartered Secretaries and Administrators of Nigeria, ICSAN.

The Institute of Chartered Secretaries and Administrators of Nigeria (ICSAN) said the reforms in the foreign exchange (FX) market are critical to enhancing the nation’s currency stability and also combat inflation.

The implementation of the policy reset, the institute said, was long sought by investors, critical stakeholders and global development organisations.

Addressing a press conference, the President and Chairman of Council, ICSAN, Taiwo Owokalade, said unifying the multiple exchange rates is laudable and part of measures to draw investors into the economy.

Speaking on the state of the nation, he said the government must urgently put in place measures to protect the rights of people mostly affected by the removal of fuel subsidy and prioritise addressing widespread hunger and unemployment.

According to him, the government must provide palliatives within a reasonable timeline to cushion the effect of subsidy removal on individuals and organisations.

Highlighting the reforms in the petroleum sector, the ICSAN chief maintained that subsidy removal would trigger new business activities and initiatives in the energy sector, saying government must strive to create the right environment for businesses to operate optimally.

Owokalade stressed that the newly-signed Electricity Act would drive the growth of the private sector, state and local governments’ involvement in electricity generation, transmission and distribution.

He urged Tinubu to empower states and local governments through constitutional reforms, to minimise rural-to-urban migration, as well as the ‘japa’ trend.

He said: “The boldness of government to remove subsidy is commended, though we know the initiatives come with huge consequences because of the heavy dependence of every Nigerian household on fuel.

“We look forward to seeing the real economic template of the government that the private sector can leverage on which would also encourage international investment.

“The era of losing our businesses and investments to smaller countries would end and Nigeria must take its rightful place as the heartbeat of Africa and even the international arena.”

Owokalade said his administration in the last two years achieved great strides in propagating the institute’s activities to drive good corporate governance practices.

He added that his tenure carried on with the institute’s long-term strategic plan increased its membership base, and engaged stakeholders to further institutionalise corporate governance in tertiary institutions and the public sector.