Presidency to Atiku: Tinubu’s forex policy not without plans

The Presidency has debunked a claim by the presidential candidate of the Peoples Democratic Party (PDP) in the 2023 election, Atiku Abubakar, that the foreign exchange (FX) management policy of President Bola Tinubu’s administration was put together without proper plans and consultations.

Atiku had said the forex policy of Tinubu‘s administration was hastily implemented without proper plans and consultations with stakeholders in the country.

The former Vice President said the present government did not allow the Central Bank of Nigeria (CBN) to design and implement an FX policy to revive the country’s economy.

Reacting, the Presidency, in a statement issued by the Special Adviser to the President on Information and Strategy, Bayo Onanuga, on Sunday, February 18, 2024, described Atiku’s claim as “false and preposterous”.

Onanuga noted that contrary to Atiku’s claim, the CBN is implementing a raft of policies to stabilise the naira and end volatility in the market, saying this has already been yielding some positive results.

He added: “Capital importation into the country is increasing, according to the latest NBS report. In the fourth quarter of 2023, Nigeria recorded a 66.27 percent increase in capital inflow, compared with Q3, before Cardoso’s arrival at CBN. In Q3, capital inflow was $654.65 million. It rose to $1.09 billion in Q4.

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“Alhaji Atiku will agree that the rise in capital inflow suggests massive investors’ confidence in Nigeria and the policy direction of the Tinubu administration.

“Juxtaposed with the policy options being implemented by the CBN, Atiku’s alternative of a controlled floatation of the Naira is similar to the policy of Godwin Emefiele when an estimated $1.5 billion was spent monthly to shore up the Naira, while arbitrage or round-tripping went on unhindered. Sadly, it was perpetrated by people close to the corridors of power.”

Onanuga further stated that it was untrue that President Tinubu’s meeting with state governors last Thursday was centred on discussing the foreign exchange crisis and currency fluctuation.

According to him, what was discussed in the meeting was food supply and how to drastically reduce food prices.

The presidential spokesman said the Minister of Information, Mohammed Idris, gave a briefing about the meeting, revealing the highlights to State House correspondents.

“One was that the meeting established a nexus between the state of security and the rising cost of food. Another was that hoarders are warehousing food, creating artificial scarcity and thus enabling the high cost of food items,” he noted.

Onanuga added that Tinubu also enjoined the governors to allow the CBN to do its work and refrain from dabbling into what is within the apex bank’s purview, saying Atiku should praise the president for not interfering with the business of the CBN.

The Star