In response to the persistent foreign exchange scarcity in the Country, the Federal Government has attributed the issue to the nations low export earnings. The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, addressed this concern during the 40th annual Conference of the Chartered Institute of Directors in Abuja on Thursday. Edun outlined the government’s plans to enhance economic diversification as a strategic measure to address the challenges posed by the current foreign exchange situation.
While acknowledging that the Nigerian economy has undergone diversification, Edun expressed apprehension about the limited growth in foreign exchange revenue, primarily due to the continued reliance on oil as the major source of income. He emphasized the need for a more diversified source of foreign exchange earnings, pointing out that sectors such as telecommunications, transport, and manufacturing lack sufficient foreign exchange earnings or savings to achieve a positive balance of trade.
Edun underscored the government’s commitment to providing a stable economy, defining stability as one where economic growth surpasses population growth, inflation remains low, the exchange rate remains stable, and interest rates are reasonable for individuals to borrow and invest in productive activities.
As the administration plans further economic diversification, the aim is to create a more resilient and sustainable economic framework that reduces dependence on a single revenue source and fosters a positive trade balance. The government’s focus on stability aligns with its broader strategy to attract foreign investment, boost export earnings, and promote overall economic resilience in the face of global challenges.