NEC demands urgent review of forex policy

Disturbed by recent free fall of the Naira, the National Economic Council (NEC), yesterday, challenged the Central Bank of Nigeria (CBN) to urgently review the country’s Foreign Exchange (FOREX) policy.

The council made up of 36 governors, governor of the CBN and key ministers, gave the order at the council meeting, yesterday, which was presided over by Acting President Yemi Osinbajo at the Presidential Villa, Abuja.

Minister of Finance, Kemi Adeosun, while briefing State House Correspondents after the meeting, said NEC’s position followed a briefing provided to the council by the CBN governor, Godwin Emefiele.

The Naira has been having a free fall, a situation that has resulted in high inflationary rate of close to 19 per cent with the currency exchanging at N506 to the Dollar at the parallel market and about N308 as official rate.

The finance minister revealed further that the CBN Governor Emefiele, in his submission to the NEC, pleaded for patience from Nigerians, assuring that something was being done.

According to the minister, “After a brief presentation on FOREX policy options by the CBN governor, council members generally expressed concern over the current situation of the exchange rate and called for an urgent review of the current FOREX policy, especially the gap between interbank and the parallel market rates.

“The CBN governor sued for patience and understanding, assuring that the situation is being closely managed,” she said. Adeosun also disclosed that NEC has approved the report to inject the sum of $250m into the Nigerian Sovereign Wealth Fund (SWF) to be sourced from the Excess Crude Account (ECA).

Speaking further on the SWF, Adeosun disclosed that the Managing Director/Chief Executive Officer of the fund, Mr. Uche Orii, presented a report to council on the Nigerian Sovereign Investment Agency (NSIA) annual reports and accounts for the year ended 2015 and update on 2016 activities.

Adesoun said in the report to NEC council members were informed that NSWF has the highest ranking in Africa in terms of performance and capitalization. She added:

“The report highlights, among others, the following: Financial performance 2014 to Q3 2016; update and investment strategy on the NSIA Future Generation Fund (FGF); NSIA infrastructure strategy and Agriculture Fund; NSIA -Old Mutual Real Estate Co-investment vehicle, among others.”

According to her, NSIA outlook, among others, include plans to increase domestic infrastructure investment in 2017 “as there are compelling opportunities in the environment.”

She noted that NSIA will also focus on “social infrastructure,” including investments in the form of affordable housing and healthcare through the development of specialist hospitals. “Council, while adopting the report of the NSIA, decided to inject a fresh $250 million into the SWF sourced from the ECA,” she stated.

The minister also reported to the council that the balance in ECA stood at USD 2,458,382,844.03, as at February 15, 2017. Giving an update on Budget Support Loan Facility, Adeosun reported that eight accounting firms have been appointed to start the verification process of the monthly facility, based on the approved fiscal sustainability plan by the States.

On the economic recovery plan, she said the minister of Budget and National Planning, Udoma Udoma, assured the council members that federal government has a recovery plan that will take Nigeria out of the woods.

She also reported the composition of the board of the NSIA with a member, each, nominated from the six geo-political zone.

They are North-East, Mrs. Halima Buba, non executive director; North West, Mr. Bello Maccido, non executive director; North Central, Ms. Lois Laraba Machunga-Disu, non executive director; South West, Mr. Babajide Zetilin, non executive director; South East, Mr. Urum Kalu Eze, non executive director; South-South, Mr. Abue Ighodalo, legal practitioner with 10 years post qualification experience.

Council members unanimously adopted the nominations for onward consideration by the president for his final approval.