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Federal Government Aims to Attract Funds from Domiciliary Accounts and Diaspora Nigerians for Economic Boost

September 2, 2023

President Bola Tinubu’s administration is set on enticing funds stashed in domiciliary accounts and held by Nigerians overseas into substantial investments across various sectors of the nation’s economy. In a recent press briefing in Abuja, the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, shared these ambitious plans.

Edun emphasized that Nigerians possess substantial resources in both domiciliary accounts and foreign holdings, which, if mobilized, could invigorate the economy. His team is diligently working to create an attractive environment that will encourage the inflow of these funds into the Nigerian economy.

Furthermore, the minister stressed the vital role Nigerians in the Diaspora can play in elevating the country’s economy to new heights through productivity and efficient resource management.

Edun noted, “There is significant potential for foreign exchange within Nigeria. We have considerable sums of cash outside the formal financial system, and by bringing these funds into the system, we can bolster dollar reserves and more. Funds in domiciliary accounts can be harnessed for investment in Nigeria.”

He also highlighted the substantial foreign currency holdings of Nigerians in banks abroad, emphasizing the need to encourage them to invest in the Nigerian economy rather than foreign ones.

The minister expressed optimism about the prospects, saying, “We are determined to establish the necessary structures and incentive frameworks to attract Nigerian funds from abroad and outside the formal financial system into our economic system, generating jobs for Nigerians.”

Edun also noted the federal government’s commitment to fiscal federalism and called on states, local governments, wealthy Nigerians, and corporations to assist in alleviating the current challenges faced by the less fortunate.

In terms of immediate relief, the minister disclosed that N2 billion out of the N5 billion in palliative funds for states has already been disbursed, with the money coming both as grants from the federal government and loans to the state government.

While acknowledging the temporary challenges associated with fiscal reforms, Edun reassured Nigerians that the government was taking necessary steps to ease their burdens, especially until the benefits of subsidy removal and increased oil revenue materialize.

He concluded by emphasizing the administration’s commitment to eliminating borrowing for recurrent expenses, focusing instead on borrowing for capital projects, thus ensuring a sustainable economic future.

credit: Vanguard

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