Multinationals leaving Nigeria due to foreign exchange woes

The Minister of Finance, Wale Edun, has stated that the lack of a liquid foreign exchange market was the major reason why some multinational companies exited Nigeria.

Edun, who was a guest on Channels Television’s Sunday Politics programme, stated that the government has addressed this issue by establishing a willing buyer, willing seller foreign exchange market.

He said, “One of the major drawbacks one of the major impediments for them (exiting multinationals) was they did not have a liquid foreign exchange market.

“Now, we have a willing buyer, willing seller foreign exchange market. It is elevated, may be not at the levels we will like it to be but it is when you get inflation down that you can stabilise the exchange rate and even get it coming down similarly with the interest rate. That fight is on. It is an improved environment for them, for big investors as a whole.”

He explained that the inability of the exiting multinationals to access foreign exchange was a major impediment to their operations in the country.

According to Edun, recent executive orders signed by President Bola Tinubu have improved the investment climate for the gas sector, which Nigeria has in abundance.

Edun said, “Companies will always come and go, of course, our aim is to not only keep them but to have them even more coming to invest, and we are sure that with the environment that we put in place, they would come.”

The minister also disclosed that tax reform proposals aimed at simplifying doing business for local and foreign manufacturers are being considered as part of an Economic Stabilisation Package.

While acknowledging current economic challenges, Edun expressed optimism about the country’s economic future, stating that the government is working tirelessly to create a conducive environment for investors.

“We are in a difficult place but the direction of travel is and it’s towards improvement. So, every single day, every single month, we are looking at an improved economic situation for Nigeria,” he said.