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Tinubu Advocating For Increased Foreign Direct Investments In France, Says Alake

Eko Hot Blog reports that No fewer than three world leaders and global financial institutions have indicated an interest in discussing partnerships with President Bola Ahmed Tinubu in France to move the nation’s economy further forward.

President Tinubu arrived in Paris, the capital of France, on Tuesday evening to participate in the New Global Financial Pact Summit at Palais Brongniart from June 22 to 23, 2023.

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Disclosing developments on Tinubu’s itinerary in France to journalists after he had received briefings from members of his delegation ahead of his participation at a New Global Financing Pact Summit, his Special Adviser on Special Duties, Communication and Strategy, Mr Dele Alake, said the President would be pushing for foreign direct investments in the scheduled meetings.

According to Alake, leaders from the United States of America, France, Switzerland and others have already indicated interest to meet with the President, especially after government’s policy on the unification of the Naira exchange rate, the domiciliary account restrictions removal, which will unlock the huge potentials for investment, create jobs and capital flows, thereby enhancing investor confidence in the economy.

Tinubu in his inaugural speech criticised the Central Bank of Nigeria saying that monetary policy requires a “thorough house-cleaning” and the Central Bank of Nigeria (CBN), on June 14th announced the unification of all segments of the foreign exchange (FX) market – replacing the old regime of multiple exchange rate “windows” for different purposes with, in effect, a market rate.

Asked about the expectations of Nigeria from the summit, he said: “The essence of this trip is to network as much as feasible and as much as is practicable. The President wants to network with international finance corporations and institutions, countries that are well healed that would facilitate or that could facilitate direct foreign investment into Nigeria.

“Don’t forget that Mr. President has taken some very bold steps in the area of economy, in the area of social engineering in the last three weeks, and particularly with reference to the unification of the multiple exchange rates, which has caused very positive multiplier effects.

“However, in the short term, we have noticed and expected that there will be a slight spike in the demand and then that would affect the value of the Naira viz-viz the dollar.

“So apart from the immediate, short and long-term positive effects of that unification policy, there could be a need for an injection of direct foreign exchange into the economy to shore up the value of the naira while market forces stabilize and in the short run or medium term, there is going to be when the effects of this policy begin to mature.

“For instance, you can now spend your money in your domiciliary account. The domiciliary account restrictions have been liberalized. So there’s no more restriction. Once there’s money in your account, you can spend it anywhere in the world.

“Now that is going to build confidence in the foreign exchange system of Nigeria, which means people abroad can begin to bring in their money into the economy, even those at home, who have hoarded their dollars for fear of restrictions and all that will now be more encouraged to bring the dollars into the financial system.

“However, with all of these, you still need a direct foreign injection of foreign exchange to build or complement the domestic policies. That is the essence of this meeting and is a global summit and there are several heads of state of developed societies that Mr. President’s policies in the last three weeks really have encouraged these foreign nations and investors to become more interested in the affairs of Nigeria in shoring up the economy of Nigeria.

“So a lot of them are quite interested so many of them have even indicated interest to meet with Mr. President in this trip. Just upstairs now. We were having a meeting with the president structuring some of these meetings with heads of state.

“At the last count about three, four different heads of state of developed countries have indicated willingness to meet with him, have a chat with him and explore areas of cooperation on the economy, on agriculture, on other areas that are salient to the development of Nigeria’s economy. That is generally the essence of this meeting”, he said.

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Akande Ismail Abiola