How multiple Fx windows is impacting Nigeria's FDI inflow

Nigeria's struggle to attract tangible Foreign Direct Investments (FDI) has been linked to the existence of multiple exchange rates. The Nigerian Economic Summit Group (NESG) has put forth this submission, calling for a resolution to this issue. Steve Oshore, Co-Managing Partner at Comercio Partners, shared his insights on this matter during a recent interview with CNBC Africa. Oshore commended the NESG for consistently offering practical solutions to economic challenges and emphasized the need to address the problem of multiple exchange rates. He pointed out the significant gap between the official exchange rate and the parallel market rates, creating arbitrage opportunities and putting pressure on the local currency. Oshore highlighted the importance of harmonizing FX rates and urged the central bank to take proactive measures to tackle this issue. He suggested the potential resumption of FX sales to bureau de change operators under strict monitoring to prevent abuses. Oshore also proposed revisiting swap arrangements with foreign partners to boost dollar supply and stabilize the currency. The interview delved into the implications of these challenges on investors and businesses operating in Nigeria, emphasizing the crucial need for a stable and efficient FX market. Oshore underscored that investors require a level of certainty and ease in repatriating their funds, which is currently hindered by the FX volatility and multiple exchange rates in Nigeria. The article discusses the urgent need for the Nigerian government and central bank to address these FX challenges to enhance the country's attractiveness to foreign investors and boost FDI inflows. The stability of the FX market plays a crucial role in determining investor confidence and fostering economic growth. As Nigeria strives to compete with global economies for investment, resolving the issue of multiple FX windows is key to unlocking the country's full economic potential.