The Federal Government initiated the repatriation of assets denominated in foreign currencies in the second quarter.
The Federal Government has initiated the process of repatriating foreign-denominated assets into the formal financial sector as part of efforts to enhance intermediate and long-term foreign exchange (FX) supply.
Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, revealed this, stating that the repatriation would commence in the second quarter of 2024. Additionally, the government plans to introduce local issuance of foreign-denominated federal government bonds in early Q2 2024.
Edun highlighted that a portion of Nigerian Treasury Bills (NTBs) and Bonds issued in 2024 has been utilized to settle Ways and Means advances from the Central Bank of Nigeria (CBN), totaling N4.83 trillion. This move aims to increase the supply of stable foreign capital to critical sectors of the economy, despite the heightened costs to the government.
Speaking at the Lagos Business School breakfast
Speaking at the Lagos Business School breakfast club, Edun mentioned the issuance of presidential executive orders to enhance US dollar liquidity in the economy. The government also aims to achieve up to 6GW of generated and delivered electricity in H2 2024, alongside scaling agricultural value chain projects.
Furthermore, the government has implemented presidential directives in the oil & gas sector, providing tax incentives and prioritizing the reduction of contracting costs and timelines. Edun emphasized the administration’s focus on attracting and retaining long-term domestic and foreign investments, along with engaging manufacturers to stimulate productive activity and address current challenges.
Edun underscored the importance of stabilizing exchange rates, offering risk-reflective yields, and implementing targeted policies to attract local and foreign capital, particularly in light of food inflation being a significant driver of economic pressure.
