Presidency: New Forex Window Records $25bn Inflows in One Year

By Omololu Ogunmade in Abuja

The Presidency yesterday released the record of its economic performance since 2015, stating that the new forex (FX) window introduced by the Central Bank of Nigeria (CBN) in April, 2017, yielded an average of $1 billion turnover every week and $25 billion inflows in one year.

According to a release by Malam Garba Shehu, Senior Special Assistant to the President on Media and Publicity, the fact-sheet contained in a 41-page document showed that FX Window inflows culminated in a total turnover of $47.14 billion, which it said signalled a rising investors’ confidence in Nigeria.

The release which said the 41-page document highlighted successes of the administration on economy, security and the fight against corruption, disclosed that $10 million was spent by the Nigeria Sovereign Investment Authority (NSIA) in March 2018 for the establishment of a world-class Cancer Treatment Centre at the Lagos University Teaching Hospital (LUTH).

It also said another $5 million each was invested in the Aminu Kano University Teaching Hospital and the Federal Medical Centre, Umuahia, to establish modern diagnostic centres. 

Disclosing that the diagnostic centres would be completed before the end of the year, the release further said Nigeria’s economy was back on the path of growth after the recession of 2016-17 with 1.95 percent growth in the first quarter of 2018.

It also said inflation had fallen from 18.7 percent in January 2017 to 12.5 percent in April 2018 while external reserve had doubled its former size as of October, 2016 and capital importation standing at $6.3 billion. 

The release also said tax revenue rose to N1.17 trillion, representing 51 percent increase from the generation in the first quarter of 2017 while N2.7 trillion was spent on infrastructure in 2016 and 2017 fiscal years and administration’s priority sectors of agriculture and solid minerals maintained consistent growth throughout the recession.

The release said: “Inflation has fallen for the fifteenth (15th) consecutive month, from 18.7 percent in January 2017 to 12.5 percent as of April 2018. External Reserves of US$47.5 billion are the highest in 5 years and double the size as of October 2016. Total exports in 2017 were 59.47% higher than for 2016

“The first quarter of 2018 saw the fourth consecutive quarterly increase in capital importation since Q2 2017. The total value of capital imported in the quarter stood at US$6.3 billion, which is a year-on-year increase of 594.03%, and a 17.11% growth over the figure reported in the previous quarter.

“The new FX Window introduced by the CBN in April 2017, now sees an average of US$1 billion in weekly turnover, and has attracted about US$25 billion in inflows in its first year (and a total turnover of $47.14 billion) – signalling rising investor confidence in Nigeria.

“Nigeria’s Stock Market ended 2017 as one of the best-performing in the world, with returns in excess of 40 percent. Five (5) million new taxpayers added to the Tax Base since 2016, as part of efforts to diversify Government revenues. Tax Revenue increased to N1.17 Trillion in Q1 2018, a 51% increase on the Q1 2017 figure.

“N2.7 Trillion spent on Infrastructure in 2016 and 2017 fiscal years, an unprecedented allocation in Nigeria’s recent history. Fourteen (14) moribund Blending Plants revitalized so far under the Presidential Fertilizer Initiative (PFI); with a total capacity of 2.3 million MT of NPK fertilizer

“In May 2018, the Federal Government launched the Presidential Infrastructure Development Fund (PIDF), under the management of the Nigerian Sovereign Investment Authority. The PIDF is kicking off with seed funding of US$1.3 billion.

“Nigeria Sovereign Investment Authority (NSIA) in March 2018 invested US$10m to establish a world-class Cancer Treatment Centre at the Lagos University Teaching Hospital (LUTH), and US$5m each in the Aminu Kano University Teaching Hospital and the Federal Medical Centre, Umuahia, to establish modern Diagnostic Centres. These Centres should be completed before the end of 2018.

“The Buhari Administration issued a N100 billion Sukuk Bond in 2017, Nigeria’s first sovereign Sukuk Bond. Proceeds from that Bond are funding 25 major road projects across the six geopolitical zones of Nigeria.”