In line with the new directives, the CBN has instructed commercial banks to engage in free trading of foreign exchange at a market-determined rate, effectively removing the cap on forex at the Investor and Exporters' window. This move is expected to foster a more flexible and market-driven foreign exchange system.
Dr. Chizea welcomed the development and highlighted that it could lead to a substantial boost in the country's revenue from oil. However, he also cautioned that the situation may result in a rise in Nigeria's external debts due to its impact on the value of the Naira.
"This development will have far-reaching implications at the fiscal authority's level. For the Budget, it will translate to a quantum leap in revenue calculations. Therefore, all estimations of revenue flows from oil will increase in Naira terms by more than 200 percent," Dr. Chizea explained.
The expert's assessment aligns with the aim of the CBN to enhance economic stability and create an environment conducive to sustainable growth. The liberalization of the foreign exchange market is intended to attract more foreign investments, encourage export activities, and diversify the economy.
The changes introduced by the CBN mark a significant shift in Nigeria's forex market operations and are expected to have a profound impact on the country's overall economic landscape. As the effects of these changes unfold, stakeholders will closely monitor the outcomes, particularly in terms of revenue generation and the management of external debts.