A report by PricewaterhouseCoopers (PwC), a global business advisory services firm, has said that the value of the Nigerian currency, the naira, has fallen by as much as 98 per cent due to the decision of the federal government to collapse the foreign exchange market into a single Investors and Exporters (I&E) window in 2023.
In a document, “Nigeria Economic Outlook: Seven Trends that will Shape Nigerian Economy in 2024,” PwC stated that the slump by almost 100 per cent took place within a period of seven months, spanning May to December 2023.
The report also indicated the much-needed Foreign Direct Investment (FDI), which had taken President Bola Tinubu outside the shores of Nigeria several times since he took over power, might continue to be elusive this year, if investors were not able to easily repatriate their capital.
The report stated, “Foreign investment may remain subdued in 2024 due to capital repatriation challenges.
“Removal of fuel subsidy (which cost $10 billion in 2022), and the collapse of multiple FX windows into a single I&E window , which caused naira to depreciate by 98 per cent between May and December 2023, among other monetary policy efforts, were key programmes executed to spur growth and regain investors’ confidence.”
The report said the planned fiscal and monetary policy reforms in 2024 were expected to stimulate economic growth, reduce inflation and address the FX challenges to drive investment.
