Iceland envoy: Removal of subsidies, FX reform will grow Nigeria’s economy

Jacky Hathiramani, Iceland’s honorary consul to Nigeria, says the removal of subsidies and foreign exchange (FX) rate reforms being carried out by the administration of President Bola Tinubu will grow the country’s economy.

Hathiramani spoke on April 10 during a press briefing in Abuja.

On May 29, 2023, Tinubu announced the removal of fuel subsidy, which he said “has increasingly favoured the rich more than the poor”.

A month later, the Central Bank of Nigeria (CBN) announced the unification of all segments of the FX market, noting that all official FX windows are now collapsed into the investors and exporters (I&E) window.

CBN also re-introduced the “Willing Buyer, Willing Seller” model at the official window.

He said these reforms are globally recognised and have had a positive impact on Nigeria’s investment climate.

“I think we already have a good economic dialogue, but I think there is a great potential to do more,” Hathiramani said.

“The big economic decisions being taken by this government are really important and are being noticed around the world: the removal of subsidies; the exchange rate reform, all of that create a much better investment environment.

“We know that there are tough times that are going on at the moment, inflation and unemployment but I think the big issue is that these reforms help put Nigeria on a higher growth path; they will attract more investments and the Republic of Iceland see Nigeria as a big opportunity going forward.  I will be doing my part to try to enhance trade and investment”.

Hathiramani also called for actions to mitigate the impact of challenges like inflation and unemployment in the country.

He said through the ongoing partnership, Icelandic experts will keep offering training and technical support to Nigerian stakeholders involved in the stockfish value chain.

“By leveraging Iceland’s experience and innovations in stockfish processing, Nigeria will optimize production, improve quality standards, and expand market access for this valuable commodity,” he said.

“As you may be aware, Iceland is renowned for its expertise in the fishing industry, particularly in the processing of stockfish, and has continued to share its knowledge and best practices with Nigeria.

“This collaboration aims to bolster Nigeria’s fisheries sector, enhance food security, and promote economic growth.

“In addition to support in the fisheries sector, Iceland is also supporting the government of Nigeria with state-of-the-art power technology.”

Hathiramani said by recognising Nigeria’s energy needs and the importance of sustainable power solutions, Iceland’s assistance in this area is expected to contribute significantly to enhancing access to reliable electricity.