The Governor of the Central Bank of Nigeria (CBN), Dr Olayemi Cardoso has said that the increase in exchange rate between the naira and dollar is due to the increase in Nigerian students who study abroad and medical trips embarked on by Nigerians.
Cardoso stated this during the ongoing sectoral debate put together by the House of Representatives on Tuesday in Abuja.
According to him, the high cost of living still remains a concern adding that the CBN is working to bring lasting solutions and to bring down the inflation to 21.4 percent through improved agricultural productivity.
"Volume on transactions on our market was over 800 million dollars. The cost of living still remains a concern. The urgency of the matter is not lost on us. We are working to bring lasting solutions. CBN working at bringing down Inflation to 21.4 percent aided by improved agricultural productivity.
"To address exchange rate volatility we will improve liquidity. These come with economic costs, which are temporary.
Exchange rate
"There's increasing demand for dollars with an increase in Nigerian students studying abroad, projected to have exceeded 100,000 by 2022. Given this data, 28.6bn dollars. Education and medical tourism also leading to increasing demand for dollars.
The Executive Chairman of Federal Inland Revenue Service (FIRS), Zacch Adedeji while also speaking at the sectorial debate, said that the federal government has no plans to increase tax but to re-strategise in ways that will yield positive and more results.
'We plan to collect N19.2trn'
We are not going to increase any tax but to re-strategise to bring more people into the tax net and that has led to restructuring. The focus of Mr. President is not to tax but to tax return on investment.
The Minister of Budget and National Planning, Atiku Bagudu also speaking on the state of the economy said that the current economic challenges faced have been looked into with a strategic plan to resolve the challenge.
"We will overcome the challenges of the moment. People will be inconvenienced, but things will get better as the government implements the reforms.
Minister of Finance, Wale Edun while speaking said that the country is where it is at the moment due to a series of economic policies over the years, adding that the cost of living has spiked as a result of inflation.
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"We are where we are today as a result of a series of economic policies over the years.
He however said, the president has promised to take measures that will address major stumbling blocks to the nation's economic growth.
He further stated that oil production has steadily increased as a result of improved security in oil-producing areas and the fight against oil bunkering and other criminalities in the area.
According to him, the measures have increased investor confidence in the sector while the nation improves its crude oil output.
He said inflation, exchange rate fluctuations, and other factors are also being addressed while agriculture is being strengthened for maximum production and non-oil sector economic diversification.
He added that, as things improve, many sectors will pick up and drive the economy.
He therefore called on Nigerians to be calm, confident and have faith in the ability of the government to turn around the economy for the citizens to prosper.
