Osinbajo: We are gradually instilling confidence in our exchange rate regime

Acting President Yemi Osinbajo says the federal government is slowly instilling confidence in the country’s exchange rate regime.

Speaking on Monday, Osinbajo said the government is determined to reduce its reliance on borrowings to fund its expenditures.

In the 2017 budget, the projected fiscal deficit of N2.36 trillion is to be financed largely by borrowing.

The acting president assured that the new budget would provide for economic growth and prosperity that is self-sustaining and inclusive.

He also said that the government is taking several steps to further plug revenue leakages.

“We are taking several actions to grow government revenues as well as plug revenue leakages,” Osinbajo said.

“This is because, notwithstanding the fact that our borrowings are still within sustainability limits, we are determined, in the medium term, to reduce our reliance on borrowings to finance our expenditures.”

He said although the economy had already shown signals of recovery, the 2017 budget was designed to pull the country out of recession.

The acting president said that the first quarter GDP estimated at -0.52 per cent compared favourably with -2.06 per cent in the first quarter of 2016.

He said as at May 2016, inflation was declining to 17.24 per cent from 18.74 percent.

“We are also gradually instilling confidence in our exchange rate regime,” the acting president said.

“This improvement in GDP growth and other macro-economic indicators is largely attributable to our strategic implementation of the 2016 Budget as well as stronger macro economic management and policy coordination.”

He said that that the country’s external reserves had risen to $30.28 billion as at June 8, 2017 from $26.59 billion as at May 31, 2016.

Osinbajo added that government committed to over N200 billion to improve transport infrastructure across the country and another N500 billion for investments in works, power, and housing.