The federal government has unveiled plans to significantly reduce the use of the US dollar in Nigeria’s economy.
Minister of Finance and Coordinating Minister of the Economy, Wale Edun, disclosed this at a Global Investors’ Forum held alongside the World Bank/International Monetary Fund annual meeting in Washington DC on Wednesday.
Edun explained that the de-dollarization strategy aims to strengthen the Nigerian Naira by reducing the country’s reliance on the US currency. This move is part of the Tinubu administration’s broader economic reforms, according to NaijaNews.
To achieve this goal, local service providers, regulators, and others will now be required to invoice in Naira instead of dollars. This change is expected to decrease demand for the dollar and increase demand for the Naira.
The removal of subsidies on petrol and foreign exchange is also a key component of the plan. This will make more funds available to the government for investment in other projects. Edun noted that Nigeria’s oil production, the country’s primary source of foreign exchange revenue, is poised for growth.
De-dollarization is a significant step towards promoting economic growth and stability in Nigeria. By reducing dependence on the US dollar, the country can better control its economic destiny.
The Tinubu administration’s economic reforms have sparked interest among investors and economists. The success of this initiative will be closely watched as Nigeria navigates its economic transformation.
“There is also a move to de-dollarise the Nigerian economy,” Edun said, adding that local providers of services, regulators, and others are being asked to “invoice in Naira rather than dollars.”
“It reduces the value for dollar and of course increases the demand for Naira,” he explained.
“I think we must not miss the fact that the number one source of foreign exchange revenue to Nigeria is oil production and they are facing the direction that is positive and should yield very good results in the near time,” he added.
