We have plans to de-dollarise Nigerian economy – Minister

Mr Edun said the move is part of efforts by the fiscal authorities to complement the efforts of the monetary policy authorities and drive necessary economic reforms.

The Nigerian government is making key efforts to de-dollarise the economy amid plans to strengthen the local currency.

According to J.P. Morgan, “de-dollarisation entails a significant reduction in the use of dollars in world trade and financial transactions, decreasing national, institutional and corporate demand for the greenback.”

Olawale Edun, Nigeria’s minister of finance and coordinating minister of the economy, made this known Wednesday on the sidelines of the World Bank/IMF annual meetings in Washington DC.

The event, tagged Global Investors’ Forum, had in attendance policy experts, market analysts, investors, fund managers, and civil society organisations.

Mr Edun said there was a move to de-dollarise the Nigerian economy and improve demand for the local unit.

The minister said the move is part of efforts by the fiscal authorities to complement the efforts of the monetary policy authorities and drive necessary economic reforms.

“There is also a move to dedollarise the Nigerian economy,” Mr Edun said, adding that local providers of services, regulators, and others are being asked to “invoice in Naira rather than dollars.”

“It reduces the value for dollar and of course increases the demand for Naira,” he explained.

Mr Edun noted that fuel subsidy removal and related foreign exchange subsidy removal means there will be a flow of funds to government coffers.

“I think we must not miss the fact that the number one source of foreign exchange revenue to Nigeria is oil production and they are facing the direction that is positive and should yield very good results in the near time,” he added.