AfDB Hails FG On Unification Of Exchange Rate

African Development Bank (AfDB) on Monday in Abuja commended the President Tinubu administration for unifying the naira exchange rate saying it would breathe air of transparency into Forex.

The bank’s president, Dr Akinwumi Adesina, said this on Monday in Abuja at the 2nd Edition of Nigeria Employers’ Summit.

The theme of the Summit is, “Trade and Non-Oil: Changing the Narratives for Rapid National Development“.

Adesina, was represented by Mr Lamin Barrow, Director-General, Nigeria Country Department of AfDB.

“The unification of the exchange rate management system is an important reform by the new administration that will enhance transparency in the allocation.

“And access to foreign exchange, as well as eliminate distortions to boost export competitiveness,” he said.

Adesina said a vibrant and competitive private sector has the potential to accelerate diversification of Nigeria’s economy and boost exports.

He said the private sector development in Nigeria was however hamstrung by policy inconsistencies and implicit taxation.

The AfDB president said it was unfortunate many private sector firms in Nigeria were overburdened by implicit taxes.

Adesina said the companies provide their own electricity, sink boreholes to get access to water, and repair roads around their places of operation.

“It is therefore not surprising that foreign direct investment (FDI) inflows have decreased from 8.8 billion dollars in 2011 to only about 469 million dollars in 2022, the lowest in a decade”, he said.

He said closer collaboration and dialogue between the Federal Government and the private sector was necessary to chisel out strategies that would position Nigeria as an ideal investment destination.