…says Nigeria attracted $30 billion worth of foreign investments in 2023
President Bola Tinubu has announced that the N30 trillion ways and means debt the federal government owed the Central Bank of Nigeria has been cleared.
The President, who stated this in his 64th independence day broadcast to the nation also noted that the CBN under his watch has also cleared around $7 billion FX backlog and still managed to add around $3 billion to the foreign reserves balance his administration met upon assumption of office last year.
While speaking on monetary policy direction of his administration, the president said, “the more disciplined approach adopted by the Central Bank to monetary policy management has ensured stability and predictability in our foreign exchange market.”
“We inherited a reserve of over $33 billion 16 months ago. Since then, we have paid back the inherited forex backlog of $7 billion.
“We have cleared the ways and means debt of over N30 trillion. We have reduced the debt service ratio from 97 per cent to 68 per cent. Despite all these, we have managed to keep our foreign reserve at $37 billion. We continue to meet all our obligations and pay our bills”, he stated.
President Bola Tinubu also talked about the economic reforms his administration has embarked upon, which he said are meant to retool the economy to serve Nigerians better and more sustainably.
“The economy is undergoing the necessary reforms and retooling to serve us better and more sustainably. If we do not correct the fiscal misalignments that led to the current economic downturn, our country will face an uncertain future and the peril of unimaginable consequences”, the President said.
President Tinubu further revealed that due to the reforms embarked upon by his administration, Nigeria was able to attract over $30 billion as foreign direct investment into the country.
“Thanks to the reforms, our country attracted foreign direct investments worth more than $30 billion in the last year”, he said.
ExxonMobil Seplat divestment deal to receive ministerial approval in days
The President in his speech also announced the imminent approval of the ExxonMobil Seplat divestment deal, which had become a subject of controversy recently.
The President earlier in May directed the Minister of State for Petroleum Resources (Oil) and the NNPC Ltd to resolve the divestment issue delaying the Seplat and ExxonMobil deal.
Consequently, a settlement agreement was signed between NNPC Ltd. and Mobil Producing Nigeria Unlimited, Mobil Development Nigeria Inc., and Mobil Exploration Nigeria Inc. regarding the proposed divestment of a 100% interest in Mobil Producing Nigeria Unlimited to Seplat Energy Offshore Limited.
“Fellow compatriots, our administration is committed to free enterprise, free entry, and free exit in investments while maintaining the sanctity and efficacy of our regulatory processes. This principle guides the divestment transactions in our upstream petroleum sector, where we are committed to changing the fortune positively”, President Tinubu said.
“As such, the ExxonMobil Seplat divestment will receive ministerial approval in a matter of days, having been concluded by the regulator, NUPRC, in line with the Petroleum Industry Act, PIA. This was done in the same manner as other qualified divestments approved in the sector.”
The move, President Tinubu added, will create vibrancy and increase oil and gas production, positively impacting our economy.
President Tinubu speaks on fiscal reforms
President Tinubu also spoke on the efforts his administration is making to reform the fiscal space so as to stimulate Nigeria’s productive capacity.
The President revealed that the federal executive council has approved the Economic Stabilization bills to drive fiscal policy reforms targeted by his administration. These bills he stated, are set to be transmitted to the national assembly for legislative action.
“We are moving ahead with our fiscal policy reforms. To stimulate our productive capacity and create more jobs and prosperity, the Federal Executive Council approved the Economic Stabilisation Bills, which will now be transmitted to the National Assembly”, he said.
“These transformative bills will make our business environment more friendly, stimulate investment and reduce the tax burden on businesses and workers once they are passed into law.”