FG to snuff out “black market” for foreign currency – Taiwo Oyedele

…Targets N650-750/$ exchange rate by December

By Abiodun OBA

The Federal Government said it will expand the official market to include all legitimate transactions while snuffing out the illicit “black market” for foreign currency.

The Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele disclosed this while speaking in an interview with Bloomberg.

He said the government will be introducing new foreign exchange rules (already part of the recommendations his committee made to President Bola Ahmed Tinubu), including a crackdown on illegal currency trading, to help the naira reach a “fair price” of N650-750 to the dollar by year-end.

The tax expert predicted that the true value of the naira would be reflected by December.

Oyedele revealed that the government plans to clear a backlog of dollar demand, bolster the naira forward market, and set transparent rules for the official market.

Oyedele, during a presentation on “Building Resilience Through Domestic Revenue Mobilization” at the inaugural session of the annual African Tax Administration Forum (ATAF) meeting in Cape Town, South Africa, on Tuesday, called on other African countries to adopt a robust tax system that can adapt to the constantly evolving global economic landscape.

He stressed the importance of designing an efficient tax system that offers stability and adaptability to help nations navigate uncertain times.

Oyedele outlined key approaches to building a tax system that can withstand challenges.

He underscored the necessity of modernization and the utilization of technology to improve tax collection and administration.

Oyedele emphasized the importance of aligning tax policies with the ever-changing global economic landscape.

According to him, “A resilient tax system should possess flexibility and agility to respond to changing circumstances and global shifts. It should be grounded in principles of transparency, fairness, and efficiency.”

He also advocated for international collaboration and the sharing of information to address tax-related issues in an increasingly interconnected world.

Oyedele concluded by reiterating that a resilient tax system isn’t just a means of revenue collection but is a fundamental pillar for a nation’s economic resilience and sustainable growth.