FG Targets Domiciliary Accounts With Funds Abroad and the ones held by Nigerians abroad in a considerable investment drive to spur economic growth.
The federal government of Nigeria is actively pursuing an ambitious strategy to attract funds held in domiciliary accounts as well as those belonging to Nigerian citizens residing abroad. This initiative is aimed at driving substantial investments into the country, with the ultimate goal of stimulating economic growth. Wale Edun, who serves as both the Minister of Finance and the Coordinating Minister of the Economy, disclosed these plans during a press conference held in Abuja on Thursday, August 31, 2023.
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In his address, Edun stressed the sheer scale of financial resources stashed away in domiciliary accounts and foreign bank accounts by Nigerians. He emphasized their potential to breathe new life into the country’s economy. What makes this initiative particularly noteworthy is its inclusivity, targeting not only domestic resources but also engaging the Nigerian diaspora as active participants in the nation’s economic rejuvenation.
Domiciliary accounts, essentially foreign currency accounts held by Nigerians within the country, have long been a repository for significant sums of money. These accounts often serve as a safe haven for foreign currency earnings and assets. Edun’s proposal centers around encouraging Nigerians to repatriate these funds for productive use within the Nigerian economy.
To incentivize repatriation, the government is considering a range of measures, including tax incentives, favorable interest rates, and reduced bureaucratic barriers. These incentives are designed to make investing in the domestic economy more attractive than keeping funds idle in foreign banks. The goal is to create a win-win situation where Nigerians can enjoy favorable returns on their investments while contributing to the nation’s economic growth.
According to reports from Vanguard, Edun identified a substantial source of foreign exchange (Forex) within Nigeria, originating from domiciliary accounts and foreign accounts owned by Nigerian citizens. This vast pool of capital, largely untapped, presents a golden opportunity for the government to revitalize the nation’s economy. To achieve this, Edun outlined a multifaceted approach that includes incentivizing Nigerians to repatriate their overseas assets and providing a conducive environment for those with financial resources abroad to contribute meaningfully to the country’s economic development.
Mele Kyari, the Group Chief Executive Officer of the Nigerian National Petroleum Company Limited, also took the opportunity to address the audience during this event. Kyari underscored a concerning trend: a notable decline in petrol consumption within Nigeria. This decline raises a red flag and underscores the urgency of redirecting the vast foreign currency holdings of Nigerians back into the domestic economy. Currently, these resources are being funneled into foreign economies, potentially to the detriment of Nigeria’s own economic growth.
Edun further emphasized the importance of mobilizing funds from Nigerians in the diaspora. He highlighted a critical point: depositing money in foreign banks effectively equates to investing in foreign economies. This raises pertinent questions about the implications of such a practice for Nigeria’s economic stability and long-term prospects. The government is keen on harnessing the considerable financial power of the diaspora community to not only boost the economy but also safeguard it from potential collapse.
FG Targets Domiciliary Accounts With Funds Abroad
FG Targets Domiciliary Accounts With Funds Abroad
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