The Institute of Chartered Accountants of Nigeria, (ICAN), has commended the President Bola Tinubus led administration for floating the exchange, but warned it will not be a magical solution to solving the countrys complicated problems.
The Institutes 59th President, Innocent Okwuosa, in his speech recently at a press conference held at the Institutes secretariat office, Victoria Island-Lagos, said that the Government should minimise the negative short-term impacts in order to realise the long-term benefits.
Okwuosa highlighted key implications of the unification on the Nigerian businesses and economy such as being a catalyst for investment flows into the country.
It is expected that the unified exchange rate will serve as a catalyst for investment flows into the country which will boost our foreign exchange reserve, grow the economy, create employment, and improve the quality of life, he said.
In addition, he said: The inflow of capital from foreign portfolio investors into the Nigerian capital market will help grow the market and allow companies to raise capital efficiently to finance their growth ambitions. “Governments revenue will increase in naira terms resulting in higher revenue to GDP ratio among others, he added.
Okwuosa pointed out that all presidential candidates prior to the 2023 national election promised the unification of the foreign exchange rate as a primary economic policy, but lacked the political will to implement the policy, and commended President Tinubu for being able to carry out this promise on June 14, less than three weeks into office.
The ICANs 59th president counseled the government to bear in mind that there are financial considerations that are accrued with the unification of the exchange rate. He maintained that with the unification, the service cost of the governments external debt which is denominated in foreign currency is $42 billion will increase by N12 trillion.
ICAN urged the Federal Government to ensure that the desired objective of this policy is achieved and there is growth in the Nigerian economy.
And to achieve this, he said the Institute advocated for a timely appointment of a new Central Bank of Nigeria governor who will provide a credible long-term direction for this policy.
He assured the Federal Government of ICANs readiness and willingness to offer its support in the efforts to move the country forward.
