By Tony Obiechina, Abuja
President Bola Tinubu on Monday assured investors that the Federal government will clear all outstanding foreign exchange obligations.
Tinubu gave the assurance at the ongoing 29th Nigerian Economic Summit Group in Abuja with the theme, ‘Pathways for Sustainable Economic Transformation and Inclusion’.
The annual Nigerian Economic Summit is organized by the Nigerian Economic Summit Group in collaboration with the Federal Ministry of Budget and Economic Planning.
The President said he would clear the foreign exchange future contracts backlog which has drained investor confidence in the country’s current foreign exchange reforms.
“All foreign exchange future contracts will be honoured by this government. I assure you we have a line of sight to the foreign exchange we need to refloat this economy. And we will get it” he added.
The President who allayed the fears of the business community, assured them that crucial plans are underway to improve foreign exchange liquidity.
He said his administration will honour every legitimate contract with respect to the nation’s foreign exchange obligations adding thatvby working closely with the private sector, financing the Three Trillion Dollar National Infrastructure Stock can be achieved in 10 years and not in 300 years.
“Consistent with our commitment to enshrining fairness and the rule of law in our country, this government will uphold the sanctity of every legitimate contract. Specifically, as it relates to the foreign exchange obligations of the government, all forward contracts that the government has entered into will be honoured and a framework has been put in place to ensure that these obligations are met in due course.
“My government is not blind to the challenges which several of you are facing in the financial markets. I can allay these concerns by revealing that we have a good line of sight into the additional foreign exchange liquidity that is required to restore market confidence,” the President said.
“Today, I urge you, as Nigeria’s foremost private sector think tank and policy advocacy group, to go much further than you have done before. Bring your ideas, bring your leadership, bring your capital, bring the collective will of your large conglomerates and business networks. Let us build a future of renewed hope. My government is prepared. Are you also prepared?”, Tinubu added.
The annual Nigerian Economic Summit is organized by the Nigerian Economic Summit Group in collaboration with the Federal Ministry of Budget and National Planning.
In his opening remarks, the Chairman of NESG Mr Niyi Yusuf noted that this year’s Summit has been calibrated as a burning platform to answer the question of the essential pillars of economic transformation that would get the country to the future envisaged by the Government.
He said the need for urgent strategic shifts that impact the ease and cost of doing business within a relatively short period is a matter of existential threat to the survival of enterprises and entrepreneurs.
According to him, the low access to and increasing cost of Forex high cost of inventory, imported inputs, and operations, coupled with the diversity of taxes, continue to erode business balance sheets, with resultant contraction in production and employment.
Mr Yusuf pointed out that large firms are battling low-capacity utilisation, while medium, small and micro-enterprises grapple with multidimensional complexities, adding that “these poor economic outcomes have created worsening social conditions that cannot be taken for granted”.
He said, “With more than 133 million multidimensionally poor Nigerians, there are potentially more risks of stagnation and distress if a low-growth and low-investment era persists. The future of the Nigerian Child is at stake, across every geopolitical zone.
“The Nigerian ageing population is also at risk. There is a high prospect that a retiree’s savings and investments will be eroded entirely just a few years into the first or second decade of retirement. Our high fertility rate which is driving a much higher population growth than economic growth poses a risk of an unproductive population bulge, with an unmanageable social infrastructure cost and burden for supporting our children’s health, nutrition and education. READ ALSO:
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“We know a Multi-Trillion Dollar Economy is viable within a decade of serious reform, consistent economic action and deliberate institutional reforms. Our nation stands at a critical precipice, and our challenges demand immediate, concerted efforts. We need to act now with a shared sense of urgency”.
The NESG Chairman said a Multi-Trillion Dollar Economy growth trajectory will urgently need certain actions including, macroeconomic stabilisation programme supported by an aggressively scaled national security effort to halt all forms of syndicated and organised crime around crude oil and solid minerals.
He commended members of the private and public sector partners, and the international community for their dedication, participation, and belief in the realisation of a stable, sustainable, secure, inclusive, and economically prosperous Nigeria.
He also commended the Ministers of Budget and Economic Planning, the co-host, Minister of Finance and Coordinating Minister of the Economy; and Minister of Health and Coordinating Minister of Social Welfare for their support in ensuring the Summit became a reality.
