The Chairman of Bharti Airtel Limited, Sunil Bharti Mittal, has praised President Bola Tinubu’s foreign exchange reforms, saying the move towards a market-driven exchange rate has helped address a longstanding concern among foreign investors in Nigeria....
The Chairman of Bharti Airtel Limited, Sunil Bharti Mittal, has praised President Bola Tinubu’s foreign exchange reforms, saying the move towards a market-driven exchange rate has helped address a longstanding concern among foreign investors in Nigeria.
The Airtel chairman said the difficulty of accessing foreign exchange had for years discouraged foreign investment, noting that allowing the naira to float more freely was among the significant policy changes introduced by Tinubu at the beginning of his administration.
“One of the biggest problems for foreign investors in this country for many years has been the lack of easy availability of foreign exchange,” he said.
He added that the reforms had generated renewed interest among investors and companies considering establishing operations in Nigeria.
“As foreign investors, one of the key changes that President Tinubu has made in the first few days of his tenure is allowing the naira to float freely in the market, letting market forces decide its value,” he said.
“In Nigeria, and generally across the board, there is palpable excitement among investors and companies planning to establish their bases here.”
Tinubu introduced major foreign exchange reforms in June 2023, including changes to the Central Bank of Nigeria’s exchange-rate management framework, as part of efforts to unify exchange-rate windows and improve transparency in the foreign exchange market.
The reforms were intended to reduce distortions, improve access to foreign currency and restore investor confidence after years of restrictions and shortages.
However, the transition to a more market-driven exchange rate also contributed to significant naira depreciation, raising the cost of imports and adding to inflationary pressures.
The Airtel chairman’s remarks highlight the importance of foreign exchange availability and policy predictability to companies seeking to invest and expand their operations in Nigeria.
The sustainability of investor confidence will depend on the stability of the foreign exchange market, macroeconomic conditions and the government’s ability to maintain a predictable business environment.