Amidst Naira depreciation, Tinubu vows to restore investor confidence
President Bola Ahmed Tinubu has taken a firm stance on addressing the concerns surrounding investor confidence in Nigeria, as the country grapples with the depreciation of the Naira in the foreign exchange market.
Speaking at the Nigeria Economic Summit #NES29 in Abuja, Tinubu reassured attendees that his administration is committed to sustaining the nation’s economy and will honour all forthcoming foreign exchange contracts.
In his address, President Tinubu acknowledged the decline in investor confidence caused by the Naira’s depreciation and emphasised the need to restore stability in the foreign exchange market.
He expressed his administration’s determination to fulfill all foreign exchange future contracts, assuring attendees that the necessary measures are being taken to refloat the economy.
“We have a line of sight to the foreign exchange we need to refloat this economy. And we will get it,” President Tinubu stated, instilling confidence in the audience.
His unwavering commitment to addressing the issues causing the decline in investor confidence signals a proactive approach to restoring stability and attracting foreign investments.
The Naira’s depreciation in the foreign exchange market has been a cause for concern among investors, as it affects the purchasing power of both local and foreign businesses operating in Nigeria.
The decline in investor confidence has led to a slowdown in economic growth and hindered the country’s development potential.
President Tinubu’s pledge to honour all foreign exchange future contracts sends a strong message to both local and international investors that Nigeria is committed to fulfilling its financial obligations.
As the country navigates through economic challenges, the government’s commitment to sustaining the economy and addressing the issues affecting investor confidence is paramount. President Tinubu’s assurance at the Nigeria Economic Summit #NES29 signifies a step in the right direction, instilling hope and optimism among investors and stakeholders alike.
Recall that the Central Bank of Nigeria (CBN) sold forward contracts to several Nigerian businesses with the promise of dollars at an agreed price in the future.
The banks opened Letters of Credit (LCs) on the back of the forward contracts, which were then used to buy goods from foreign suppliers.
However, the CBN has not settled the contracts since February 2023, leading to a backlog of around $3 billion, according to industry data.
It was gathered that the Naira exchanged at N1,160/$1 at the parallel market on Monday morning.
Meanwhile, at the FMDQ market on Friday, the Naira closed at $/N808.27.
