Success Nwankwo
The Federal Government, through the Ministry of Finance, Minister Wale Edun, has asserted that a major factor in certain multinational firms’ decision to leave Nigeria was the absence of a liquid foreign exchange market.
According to Edun, who was a guest on Channels Television’s Sunday Politics programme, the government has created a willing buyer, willing seller foreign exchange market in order to address this problem.
He stated, “One of the major drawbacks and impediments for them (exiting multinationals) was the lack of a liquid foreign exchange market.”
“Now, we have a willing buyer, willing seller foreign exchange market. It is elevated, may be not at the levels we will like it to be but it is when you get inflation down that you can stabilise the exchange rate and even get it coming down similarly with the interest rate. That fight is on. It is an improved environment for them, for big investors as a whole.”
He noted that the leaving companies’ inability to acquire foreign exchange posed a significant barrier to their activities in the country.
Following the statement of Edun, recent executive directives approved by President Bola Tinubu have enhanced the business climate in Nigeria’s gas sector, which is abundant.
Edun said, “Companies will always come and go, of course, our aim is to not only keep them but to have them even more coming to invest, and we are sure that with the environment that we put in place, they would come.”
The minister also stated that tax reform measures targeted at making doing business easier for domestic and foreign industries are being studied as part of an Economic Stabilisation Package.
While acknowledging present economic issues, Edun voiced confidence in the country’s economic future, noting that the administration is working relentlessly to create a favourable environment for investment.
