NECA Applauds Fiscal, Monetary Authorities Broader Push To Stabilise Naira, Economic Framework.
The Nigeria Employers’ Consultative Association (NECA) has commended the Federal Government’s recent issuance of a $2.2 billion Eurobond, which aims to finance the 2024 fiscal deficit, fund infrastructure projects, and stabilize the naira. NECA’s Director General, Mr. Adewale Oyerinde, emphasized that the government’s efforts, alongside the Central Bank of Nigeria’s (CBN) introduction of new foreign exchange guidelines, reflect a comprehensive strategy to stabilize Nigeria’s currency and strengthen its economic framework. The revised guidelines focus on transparency, ethical practices, and improved governance in the foreign exchange market, contributing to increased confidence and a more efficient FX system.
Oyerinde noted that the naira has steadily appreciated, partly due to increased dollar inflows and the launch of the Electronic Foreign Exchange Matching System (EFEMS), which facilitates transparent FX transactions. The recent improvement in the naira’s exchange rate, which saw a more than 8% appreciation by early December 2024, is especially welcomed by the private sector, which has been struggling with forex challenges for importing essential raw materials and machinery. While the exact reasons for the naira’s rise are unclear, the Eurobond issuance and increased diaspora remittances during the festive season are likely contributing factors.
To sustain and further improve the naira’s value, Oyerinde urged the government to implement measures such as boosting crude oil production for export, refining oil domestically, and promoting non-oil exports. He also called for better monetary and exchange rate management, including the productive allocation of foreign exchange, and for greater patronage of locally produced goods and services. Additionally, he highlighted a significant 32.9% month-on-month rise in inflows into the Nigerian Autonomous Foreign Exchange Market (NAFEX) in November 2024, signaling positive impacts from these efforts