BUA Group Chairman says FX reforms positive for Nigeria

The Chairman of BUA Group, Abdulsamad Rabiu, recently shared his insights on the unification of foreign exchange rates in Nigeria, emphasizing the positive impact it will have on attracting investors to the country. Speaking with CNBC Africa's Kenneth Igbomo at the 30th Afreximbank Annual Meetings in Accra, Ghana, Rabiu highlighted the significance of addressing the challenges of FX liquidity and the benefits of the new policy. Rabiu expressed his support for the unification of FX rates, stating that it would create a more favorable environment for investors. He noted that the previous disparities between the official and parallel exchange rates had deterred some investors from bringing money into the country. By establishing a more balanced and transparent FX system, Rabiu believes that it will encourage greater investment inflows and foster economic growth. The BUA Group Chairman underscored the importance of liquidity in the FX market, particularly for businesses with substantial foreign exchange needs. Rabiu shared that his company requires over $50 to $60 million monthly for its FX requirements, which cannot be solely met by the central bank. The reforms are expected to facilitate easier access to foreign exchange from various sources, alleviating the challenges faced by businesses operating in Nigeria. Reflecting on the key takeaways from the Afreximbank Annual Meetings, Rabiu emphasized the need to strengthen the African Continental Free Trade Agreement (AfCFTA). He highlighted the vast potential of the $3.4 trillion African market and urged leaders to collaborate in maximizing intra-continental trade and value addition. Rabiu stated that by enhancing the AfCFTA and fostering cooperation among African nations, the continent could unlock tremendous opportunities for growth and development. In conclusion, Rabiu expressed optimism about the long-term benefits of the FX reforms in Nigeria and urged stakeholders to seize the opportunities presented by the evolving economic landscape. As Africa navigates through various challenges and opportunities, collaborative efforts and strategic initiatives are essential in driving sustainable progress and prosperity across the continent.