President Tinubu Issues Executive Orders To Boost Foreign Exchange Liquidity

The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, has revealed that President Bola Tinubu has issued directives for the implementation of executive orders aimed at enhancing the inflow of foreign exchange into the banking system.

Edun made this disclosure while addressing inquiries from members of the House of Representatives Committee on Finance during his appearance to defend the Ministry’s 2024 budget estimate.

According to the Minister, President Tinubu has directed the implementation of an executive order compelling the deposit of all foreign exchange held in private hands into banks. This move is intended to bolster liquidity within the banking system and facilitate a more comprehensive accounting of foreign currency reserves.

Furthermore, another executive order, as outlined by Edun, permits the issuance of foreign currency financial instruments within the domestic economy. This strategic measure is designed to encourage individuals to bring cash holdings into the banking system, providing them with investment opportunities and contributing to overall economic growth.

In addressing concerns about the country's revenue losses resulting from waivers, Edun indicated that the government is exploring the possibility of replacing waivers, which have proven costly, with a rebate system. This shift aims to optimize revenue collection while aligning with the government's commitment to increasing foreign reserves.

Edun emphasized the critical need to enhance Nigeria's foreign reserves, particularly in light of import dependencies and the ongoing effort to boost local production. The Minister highlighted the importance of oil revenue as a primary source of foreign exchange, underlining its significance for the Nigerian economy.

The executive orders issued by President Tinubu underscore a multifaceted approach to addressing economic challenges, encouraging investments, and maximizing foreign exchange liquidity. As these directives take effect, they are expected to contribute significantly to the country's economic revitalization and resilience.