A billionaire businessman, Tony Elumelu, has stated that he is confident that the recent change of leadership at the Central Bank of Nigeria will be crucial in restoring confidence in the local currency.
Elumelu stated this in an interview with Bloomberg TV in New York, saying, “People are accumulating money because they lack confidence, not because they need it right away.”
He continued by expressing optimism in the incoming central bank management, calling them “very capable” and saying they “will be able to bring confidence”.
The largest stakeholder of Transnational Corp. of Nigeria Plc, Nigeria’s largest conglomerate, and chairman of United Bank for Africa Plc, Elumelu, remarked that there is a palpable sense of worry among Nigerians due to uncertainties over the future stability of the Naira.
Elumelu concluded by saying, “The missing link has been poor leadership, and I believe that we all know there’s so much private global capital seeking the right investment destination.”
The value of shares of his companies has significantly increased this year in terms of dollars, with Transcorp’s worth expected to more than double in 2023 and United Bank’s value expected to rise by almost 40%.
Tony Elumelu is still optimistic that the new leadership at the Central Bank of Nigeria will help to restore trust in the Naira and spur the country’s economy in light of recent developments.
Under Elumelu’s direction, Transcorp manages over 16% of Nigeria’s electricity production capacity, runs hotels, and conducts oil prospecting.
Due to its strategic situation, Elumelu has opportunities to grow in areas that are important to the continent’s most populated country.
Last Friday, Olayemi Michael Cardoso formally commenced his duties as the Central Bank of Nigeria’s acting governor, awaiting Senate confirmation. Nevertheless, the value of the Nigerian Naira has continued to decrease despite this shift.
The Forward Marketing Bureau de Change Ltd.’s compilation of data indicates that the Naira to N992/$1 in the unofficial market, marking a substantial decrease from its starting rate of N900 Naira at the beginning of the month.
Additionally, when compared to its official closing of 772.98 Naira on the FMDQ trading platform the previous Thursday, this rate represents a notable 30% depreciation.
