Muhammad Abdullahi, the deputy governor of the Central Bank of Nigeria (CBN), says the regulator will soon launch a new foreign exchange (FX) manual aimed at attracting inflows and strengthening stability in the currency market.
Abdullahi spoke on Tuesday at the Nigeria Development Update
(NDU) event hosted by the World Bank in Abuja.
He said the framework is part of ongoing efforts to deepen
transparency and improve the functioning of Nigeria’s FX market.
“We are going to be launching a new foreign exchange manual
to ensure that we’re opening up all the doors for more inflow,” Abdullahi said.
He also said recent reforms have reduced the need for heavy
interventions in the FX market, allowing market forces to play a more active
role in price discovery.
“Nigeria has not had to spend heavily to stabilise its
currency… the pricing is transparent, it’s credible, and we’re allowing the
market to determine the cost,” he said.
Abdullahi added that the apex bank remains focused on
sustaining macroeconomic stability, describing it as a prerequisite for
long-term growth.
“We’ve been on a solid disinflation journey for over a year
and the target, of course, is to get to single-digit inflation,” he said.
“Fifteen percent inflation is still high… we are strictly
working every day to ensure that we’re able to get inflation down, because
that’s the biggest tax to the poor.”
Also speaking, Wale Edun, minister of finance and
coordinating minister of the economy, said Nigeria is in a stronger position to
withstand global shocks despite rising inflationary pressures linked to the
Middle East crisis.
Edun said reforms implemented under President Bola Tinubu
have improved resilience in the economy, ensuring steady fuel supply and
reducing the risk of disruptions seen in other countries.
“In Nigeria of today, where there are no petrol queues —
yes, the prices have gone up, but there’s still supply, there’s resilience that
keeps the wheels of the Nigerian economy and society running,” he said.
“We must recognise that it is the reform… that Nigeria is in
a much better, much stronger position for the economy and the society than it
would have been without these reforms.”
The minister also said the government is balancing potential
gains from higher oil prices with rising costs, noting that inflationary
pressures across energy and food supply chains remain a concern.
He added that the economic management team is assessing
different scenarios arising from the global crisis while prioritising
investment as a pathway to job creation and poverty reduction.
“The way we are going to substantially lift millions of
Nigerians out of poverty is by investment,” Edun said.
He also reiterated the government’s commitment to social
protection through targeted digital transfers to vulnerable Nigerians.
In his remarks, Mathew Verghis, World Bank country director
for Nigeria, said reforms implemented since mid-2023 are beginning to yield
results, citing moderating inflation and improved external balances.
However, he warned that inflation remains a major threat to
household welfare.
“Reducing high inflation is probably the single fastest way
to allow people to feel the benefits of reforms,” Verghis said.
The director also said energy sector reform remains critical
to unlocking growth and achieving Nigeria’s long-term economic ambitions.
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