Central Bank of Nigeria Introduces $25,000 Weekly Forex Access for BDCs to Alleviate Yuletide Pressure
In a recent announcement, the Minister of Finance and Coordinating Minister of the Economy revealed a pressing need for an annual investment of $20 billion to achieve a seven percent economic growth rate in Nigeria by 2027. Speaking on key economic initiatives, he emphasized the importance of strategic investments as outlined in the recently approved Medium Term Expenditure Framework, designed to boost the economy from 2025 to 2027.
The federal government has initiated measures to unlock the healthcare value chain, aiming for 70 percent of the pharmaceutical needs to be produced locally by 2030.
In an effort to address the seasonal demand for foreign exchange, the Central Bank has allowed Bureau de Change (BDC) operators to temporarily access the Nigerian Foreign Exchange Market (NFEM), enabling them to purchase up to $25,000 weekly from authorized dealers starting December 19, 2024, through January 30, 2025.
The Minister stated, “We must raise an additional $20 billion in investment expenditure to achieve our economic goals by 2027. This growth will significantly improve social and economic indicators, addressing issues like poverty and human development.”
Efforts to enhance the healthcare sector included a presidential initiative focused on ensuring the domestic production of necessary pharmaceutical supplies. A pipeline of $5 billion in potential investments is currently awaiting engagement from private investors.
Tax reforms are also underway, with legislation progressing through the National Assembly to improve tax revenue in alignment with global standards.
The Minister expressed confidence that the 2025 budget would be executed effectively, highlighting the need for increased revenue as the foundation of financial planning. He noted improvements in governmental revenue management, stating that the administration is addressing previously significant losses, amounting to five percent of GDP annually.
During a recent stakeholder engagement, he provided insight into the administration’s economic priorities and accomplishments over the past 18 months, including a modest GDP growth of 3.46 percent. He admitted, however, that more inclusive growth is necessary to benefit the broader population.
The Minister underscored the critical role of the private sector and foreign investments in stimulating overall economic growth, while highlighting the government’s commitment to improving local production capabilities and protecting domestic industries from adverse effects of import policies.
In terms of progress on food import policies, the government is carefully strategizing to support local agricultural production without undermining market viability. The success of revenue generation efforts by the Nigeria Customs Service and Federal Inland Revenue Service has also been acknowledged, further strengthening economic stability.
As part of its efforts to maintain a functional forex market, the Central Bank reiterated its commitment to managing price volatility and providing necessary liquidity, thereby ensuring that all foreign exchange transactions comply with market regulations.
