Bagudu says Nigeria needs sound financial system to attract investments

Chidimma Uchegbu – Abuja

 

Minister of Budget and Economic Planning Senator Abubakar Bagudu has said Nigeria needs to attract more resources than it has to fund its development agenda.

 

For this to happen, the nation must develop a sound financial system with integrity, he said.

 

He spoke at the management retreat of the Nigerian Financial Intelligence Unit in Abuja on Monday.

 

“Our Agenda 2050, a statement of our national aspiration, requires that we invest at least 100 billion dollars annually to achieve a GDP per capita of $33,000 or more by 2050,” he said, adding, “We are nowhere near that.”

 

He said the current financing level is smaller than that but explained that President Bola Tinubu’s administration had undertaken bold and courageous economic reforms to boost its revenue.

 

“However, we still need to be where we should be; we are not near the kind of flows we expect,” the minister noted.

 

To buttress his point, he cited the $20 billion federal budget size, which he said was too small compared with other countries like Brazil and Indonesia, which have similar population sizes and have $750 billion and $210 billion budgets, respectively.

 

The minister explained that Nigeria needs a sound financial system to attract domestic and foreign investments to finance its development plan.

 

“The plan is to use private sector or capital market money to fund the plan. Because of that, we need confidence, integrity, and soundness in our financial system,” he pointed out, “The rating agencies could be more generous with us, maybe not only with us but with all countries.”

 

He stated that this was the role of the NFIU, which he said had performed creditably but needed to communicate its activities more effectively for the public to acknowledge.

 

The minister said, “Our credit rating should improve. We have taken measures similar to those in countries that have achieved significant increases in credit ratings. We have established and committed institutions, particularly the NFIU, and should benefit from them.

 

“Communication matters, so we reinforce and punish wrongdoing while drawing attention to our great work to enhance the integrity and soundness of our financial assistance.”

.As CBN records $553m remittance inflow for July

 

Meanwhile, The Central Bank of Nigeria (CBN), says it recorded a significant increase in remittance inflows of 553 million dollars in July.

 

According to a statement issued by CBN’s Acting Director, Corporate Communications, Mrs Hakama Sidi-Ali, the all-time high remittances represents a 130 per cent increase from the corresponding period

in 2023.

 

Sidi-Ali said that the figure represented the highest monthly total inflows on record, and reflects ongoing efforts by the apex bank to enhance liquidity in Nigeria’s foreign exchange market.

 

According to her, the substantial growth in remittance receipts is attributable to policy measures introduced

by the CBN to enhance liquidity in Nigeria’s foreign exchange market.

 

“These measures

include granting licences to new International Money Transfer Operators (IMTOs), implementing a willing buyer-willing seller model, and enabling timely access to Naira liquidity for IMTOs.

 

“Diaspora remittances are a crucial source of foreign exchange for Nigeria, supplementing both foreign direct investment and portfolio investments.

 

“The CBN’s initiatives have

supported continued growth in these inflows, aligning with the institution’s objective of doubling formal remittance receipts within a year,” she said.

 

She said that the increase in remittances was a strong testament to the success of the CBN’s ongoing efforts to bolster public confidence in the foreign exchange market.

 

The director said that it was an indication of efforts to strengthen a robust and inclusive banking system, and promote price stability, which is essential for sustained economic growth.

 

“Recent data from the National Bureau of Statistics (NBS) showed that Nigeria’s year-on-year headline inflation rate slowed in July for the first time in 19 months.

 

“This is a clear indication that the CBN’s monetary policy tightening measures are delivering results.

 

“The CBN anticipates that these measures will contribute to achieving its broader objective of maintaining stability in the foreign exchange market,” she said.

 

Sidi-Ali said that the apex bank would continue to monitor market conditions and adjust policies as necessary to enable greater remittances flow into