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Business experts have raised their voices to the Federal government to stabilize the Nigerian currency in the foreign exchange market.
They urged the federal government to obtain extended foreign loans as a strategy to resolve issues surrounding foreign exchange forwards, portfolio investors, and airlines' trapped funds.
The president of the Association of Bureau De Change Operators of Nigeria (ABCON), Aminu Gwadabe expressed concerns, stating that, "The $2.2 billion Afrexim bank crude prepayment facility is a welcome development but not enough to stimulate the market."He highlighted the daily demand in the Investors & Exporters foreign exchange window ranges from $150 million to $250 million, thereby suggesting that the $2.2 billion would be certainly exhausted within 10 to 15 days.
Meanwhile, the founder of Cowry Asset Management Limited, Johnson Chukwu, proposed securing a long-term loan with a minimum five-year span.
Chukwu emphasized that this approach would enable the government to plan for repayment and stabilize the foreign exchange market, considering matured forwards of about $6 billion and outstanding debts owed by airlines and Foreign Portfolio Investors.
The consensus among experts is that obtaining long-term loans from entities like the International Monetary Fund (IMF) and the Middle East is crucial for the government to settle outstanding obligations and ensure market stability.
