The Nigerian National Petroleum Company Limited, NNPCL and Ministry of Finance have been asked to return all foreign exchange in their possession to the Central Bank of Nigeria, CBN.

The Bank is thinking outside the box, as it is set to drive new policy directives to boost foreign exchange inflow and improve naira valuation against the United States dollar.

Governor of the Bank, Olayemi Cardoso said the CBN, has approached the Ministry of Finance and the Nigerian National Petroleum Company Ltd to return all foreign exchange inflows to the CBN.

The move is targeted at enhancing CBN’s FX flows and contributing to the growth of the country’s reserves.

Cardoso said these on Wednesday in his address at the launch of the NESG 2024.

Cardoso said, “We believe that the naira is currently undervalued and, coupled with coordinated measures on the fiscal side, we will expedite genuine price discovery in the near term. This coordinated approach will contribute to a more balanced and stable exchange rate.

“Our collaboration with the Ministry of Finance and the NNPCL to ensure that all FX inflows are returned to the Central Bank. This coordinated effort will greatly enhance the Bank’s FX flows and contribute to the accretion of reserves.”

The apex bank boss shared his optimism that the country’s FX situation will improve in 2024 despite the setback of the naira which is trading at N1,390 per dollar at the black market.

Since the managed float policy of the CBN in June 2023, the naira has been under pressure depreciating from around N700 to over N1200 by end of 2023.

He, however, linked the expected stability in the foreign exchange market in 2024 to the reduction in petroleum product imports and the market-determined exchange rate.

Cardoso said, “We are implementing a comprehensive strategy to improve liquidity in our FX markets in the short, medium, and long term. Our focus is on addressing fundamental issues that have hindered the effective operation of our markets over the years.

“Upholding the integrity of financial markets is crucial for building confidence. With the completion of an independent forensic review and the subsequent clearance of the backlog of valid FX transactions, we remain steadfast in our commitment to decisively address any infractions and abuses.

“In our efforts to stabilize the exchange rate, it is imperative that we prioritize transparency and create a market environment that enables the fair determination of exchange rates, ensuring stability for businesses and individuals alike.”