Nigeria Seeks $10 Billion to Stabilize Exchange Rate Amid Naira Decline

The Nigerian Federal Government is taking steps to raise $10 billion to enhance foreign exchange liquidity and stabilize the naira, which hit a new low of 1,850 per dollar at the parallel market. During the inaugural Public Wealth Management Conference in Abuja, Vice President Kashim Shettima, representing President Bola Tinubu, revealed this initiative.

The theme of the event, “Championing Nigeria’s Economic Prosperity,” was organized by the Ministry of Finance Incorporated. The Senior Special Assistant to the President on Media & Communications, Stanley Nkwocha, stated that the government aims to double the GDP growth rate and increase the GDP base over the next 8 years by optimizing the management of federal assets and investments. The President emphasized the importance of transparency and accountability, believing that improved corporate governance and attracting investment capital would lead to increased returns.

Despite a heavy security presence at the Wuse Zone 4 currency market in Abuja, exchange rate volatility persisted. Currency traders in Abuja quoted the buying price of the dollar at 1,820/$ and the selling price at 1,850/$. Some operators expressed concerns that without proper measures, the rates might reach an all-time low of 2,000/$.

Meanwhile, at the official market, the naira appreciated by 1.48% to 1,551/$ following an improved forex turnover of $117.32 million. This positive development occurred after the naira weakened for three consecutive days at the Nigerian Autonomous Foreign Exchange.

Nigeria’s ongoing forex scarcity stems from reduced oil production and foreign inflows. The Central Bank of Nigeria floated the naira in June 2023, unifying all forex market segments, leading to a significant devaluation of the local currency.