- President Bola Ahmed Tinubu inaugurated his first National Economic Council, coinciding with the unification of Nigeria’s forex market by the Central Bank.
- The National Economic Council consists of state governors, the Central Bank governor, and other government officials, chaired by the Vice-President.
- The forex market changes include the consolidation of all transactions into the Investors and Exporters (I&E) window, where the exchange rate is determined by market forces, and the reintroduction of the “Willing Buyer, Willing Seller” model, allowing eligible transactions to access foreign exchange at preferred rates.
President Bola Ahmed Tinubu has officially inaugurated his administration’s first National Economic Council, coinciding with the Central Bank of Nigeria’s announcement of the unification of the forex market, merging all segments into a single window.
The council, typically consisting of 36 state governors, the CBN governor, and other officials, aims to foster collaboration among governments at all levels. The Vice-President chairs the council.
A statement by the National media, said “President Bola Tinubu Inaugurates National Economic Council, Calls For Collaboration Amongst Governments At All Levels.”
More details are expected of the inauguration, which took place at the Aso Villa according to media footage.
What you should know
Yesterday, According to a press release signed by the CBN’s Director of Financial Markets, Angela Sere-Ejembi, Ph.D., and dated 14 June 2023, the FX changes include:
Abolishing the segmentation of the FX market into different windows. All transactions will now be done through the Investors and Exporters (I&E) window, where the exchange rate will be determined by market forces. Applications for medicals, school fees, BTA/PTA, and SMEs would continue to be processed through deposit money banks.
- “Previously, the FX market was divided into different windows, but now all transactions will be conducted through the Investors and Exporters (I&E) window. This means even those applying for BTA and PTA will also pay the official exchange rate at the I&E window. The exchange rate in this window will be determined by market forces. ”
Reintroducing the “Willing Buyer, Willing Seller” model at the I&E window, where all eligible transactions can access foreign exchange at their preferred rates.
- “Willing Buyer, Willing Seller model: The CBN is reintroducing this model at the I&E window. It means that eligible transactions can access foreign exchange at the rates they prefer.”
Economic task
President Bola Tinubu said that the task of reviving the economy before the new administration is daunting.
He, however, added that there would be no excuses for not delivering since they all begged and even danced before Nigerians to give them the job.
He urged the members of the Council to put in their best, pointing out that Nigerians are waiting for them eagerly to deliver democratic dividends.
- “It is very reassuring that our citizens are behind us, but they want reforms and they want them very quickly.”
Notable attendees
The National Economic Council (NEC), headed by the Vice President, is constitutionally responsible for advising the President on economic matters.
During the inauguration, notable attendees included Governor Abdulrahman Abdulrazaq of Kwara, Governor Ademola Adeleke of Osun, Governor Yahaya Bello of Kogi, Governor Biodun Oyebanji of Ekiti, and Governor Abdullahi Sule of Nasarawa. Also present were Umo Eno of Akwa Ibom, Peter Mbah of Enugu, Bassey Otu of Cross River, Caleb Muftwang of Plateau, Nasir Idris of Kebbi, Aliyu Radda of Katsina, and Hycinth Alia of Benue.
Prominent government officials such as the Secretary to the Government of the Federation, George Akume, Chief of Staff, Femi Gbajabiamila, and the Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPCL), Mele Kyari, were also in attendance.
The event was graced by the acting Accountant General of the Federation, Oluwatoyin Madein, the Acting Governor of the Central Bank, Folashodun Shonubi, as well as Permanent Secretaries from the Budget and National Planning, Federal Capital Territory Administration, and State House departments.