…Tasks new CBN governor on strategy to address exchange rate
Wally Adeyemo, United States Deputy Secretary of Treasury, on Tuesday disclosed that the international bodies/partners were ready to help Nigeria towards addressing the exchange rate.
This comes as he expressed hope in the appointment of the new governor of the Central Bank of Nigeria (CBN), urging him to come up with a clear strategy towards addressing the exchange rate.
He disclosed this at a media parley in Lagos, while on a visit to Nigeria to highlight the economic and cultural ties between the two countries.
President Bola Tinubu on Friday appointed Cardoso as the new Governor of the CBN and replaced the deputy CBN governors.
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“The appointment of new Central Bank government gives Nigeria the opportunities and lay out a clear strategy for what they want to do in terms of the exchange rate, but in addition to thinking about what they do in terms of assets management, it needs to be clear what the monetary policy wishes will look like,” he said.
“Of course, Nigeria’s international partners stand ready to help Nigeria both with product, with advice in terms of how to go from where they are today to where they need to be,” Adeyemo further said.
He further said that some American companies in Nigeria would like to invest more.
“Over the course of my time here I met with a number of American companies that have investments here in Nigeria. They want to invest more, because it makes economic sense for them,” he said.
He said that in order to do so, there was a need for a macroeconomic environment that would create real opportunities for them to make those investments.
“So, I think the government is taking the steps that are needed to create an opportunity for investors not only for the United States, but from around the world to invest in Nigeria, ultimately, for the United States and the Biden administration.
“What we know is that the United States and Nigeria share so much in common. We’re the largest democracies on our respective continents with Nigeria going from 200 to 400 million people by 2050,” Adeyemo said.
He called on the Nigerian government to address corruption and fraud
“I think we are going to continue to call on the Nigerian government no matter who is in it to take steps to address corruption, because it’s in the national interest. If you want to build an economy that works for Nigeria, you need to address corruption, and graft and fraud that is critical.
He said that there was need for a macroeconomic framework that will ultimately stand the test of time addressing this major challenge in the Nigerian economy.
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“Nigeria needs a stable naira. Unifying Nigeria’s foreign exchange rate will also create the kind of macroeconomic stability that is essential to attracting foreign investment,” he said.
Adeyemo said the government needs to articulate and implement a credible fiscal strategy that will provide the resources to make critical investments.
“I recognise the decision to end fuel subsidies is hard for many Nigerian households. But it was an important early step to create resources that the government can use to invest in physical and digital infrastructure, education, and a strong small business environment.
“There is nowhere this need is greater than the agricultural industry, which, despite the digital revolution going on in Nigeria, remains Nigeria’s top employer,” Adeyemo said.
