Top Stories

Why Nigeria Should Target Exchange Rate of 500 to 600 Naira -Policy Document

LAGOS, June 16 (Reuters) – Nigeria should target an exchange rate of between 500 and 600 naira to the dollar, which requires reserves of up to $60 billion and a doubling of exports to support growth ambitions, a policy document prepared for the government showed.

President Bola Tinubu has moved swiftly to reform the economy since being sworn into office on May 29, scrapping a costly petrol subsidy and curbs on the foreign currency market, which saw the official rate of the naira tumble to record lows.

Advertisement

The report from Tinubu’s policy advisory council, seen by Reuters on Friday, proposes reforming the central bank, including a halt to its quasi-fiscal operations that accelerated under suspended governor Godwin Emefiele.

Tinubu’s spokesman, Dele Alake, did not immediately respond to telephone calls and messages to seek comment.

Advertisement

About $50 billion to $60 billion in reserves and monthly inflows of up to $8 billion in export earnings and other capital inflows “will be required to support the policy at an exchange rate of 500 to 600 naira to the dollar,” the report said.

This would be achieved by ramping up production of oil and gas, lifting manufacturing exports and attracting investment in light electronics assembly, fertilisers, sugar and palm oil.

Advertisement

But Nigeria would need to more than double exports from $42.4 billion last year. Foreign reserves, which have been falling, stood at $35.25 billion at the end of May, official data shows.

The revenue authority, customs and maritime agencies would be collapsed into a new single Nigerian Revenue Service to improve tax and revenue collection, the policy document showed.

Advertisement

With more revenue, the government can ramp up capital expenditure to 25% of gross domestic product from 4.1% and narrow the budget deficit to 3% of GDP, down from 4.78% estimated for this year, the document said.

Advertisement
citynews

Recent Posts

Simon Ekpa Not Our Member, Should Not Be Associated With Us- IPOB

IPOB PRESS RELEASE 22/11/2024 SIMON EKPA IS NOT AN IPOB MEMBER AND MUST NOT BE…

2 hours ago

NEWSPAPER HEADLINES FOR FRIDAY 22ND NOVEMBER 2024

NEWSPAPER HEADLINES FOR FRIDAY 22ND NOVEMBER 2024. *PUNCH* Gombe begins N28bn Assembly, high court complexes…

3 hours ago

My husband assaulted me, ruined my career – Olajumoke Onibread

Former bread seller turned model, Olajumoke Orisaguna, popularly known as Olajumoke Onibread, has opened up…

6 hours ago

“I did not punch Akpabio” – Senator Bamidele speaks on alleged fight with Senate President

Senate Majority Leader, Opeyemi Bamidele has denies reports that he was involved in a fight…

6 hours ago

Speaker Obasa Clarifies Negative Perceptions As Sanwo-Olu Presents 2025 Budget

– says lawmakers united to meet yearnings of Lagosians – accuses detractors of peddling news…

6 hours ago

2027: “No vacancy for non-indigenes in Alausa” – Lagos youths tell Seyi Tinubu

The Coalition of Lagos Indigenous Youths has rejected the recent endorsement of Mr Seyi Tinubu,…

6 hours ago