The administration of President Bola Tinubu aims to attract funds from domiciliary accounts and Nigerians abroad for investments in various sectors of the economy. The Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, revealed this during a press briefing in Abuja. He emphasized that Nigerians have significant funds in domiciliary accounts and abroad that could be used to revitalize the economy. The minister also highlighted the importance of Nigerians in the diaspora in driving economic growth through productivity and efficient resource management.
Mr. Edun stated that there are substantial sources of foreign exchange in Nigeria, including cash outside the system that, if brought in, would increase reserves and money supply. He mentioned the existence of funds in domiciliary accounts that could be utilized for investment in Nigeria. Additionally, he emphasized the need to create an environment that encourages Nigerians abroad to invest in the Nigerian economy instead of foreign economies.
The minister acknowledged the challenges faced by Nigerians due to fiscal reforms but assured that the government is taking necessary steps to alleviate their difficulties. He mentioned the release of N2 billion out of the N5 billion palliative funds to states, without specifying the breakdown between grants and loans. Mr. Edun also expressed the government’s commitment to eliminating borrowing for recurrent expenses and focusing on borrowing for capital projects.
In another development, the Group Managing Director of the Nigerian National Petroleum Company Limited (NNPCL), Mr. Mele Kyari, revealed that fuel consumption has decreased by 30% since the removal of petrol subsidy. This reduction in demand has also led to a 30% decrease in the NNPCL’s need for foreign exchange to import fuel. Mr. Kyari also shared positive news about oil production, which has increased to 1.6 million barrels per day from less than 1 million a year ago. He clarified that the $3 billion deal with the African Export-Import Bank (AFREXIM) is not a loan but a forward sale arrangement.
