…Calls for unified exchange rate
From Uche Usim and Juliana Taiwo-Obalonye, Abuja
Nigeria’s new President, Bola Ahmed Tinubu, on Monday, announced the end of fuel subsidy regime in the country.
He also called on the Central Bank of Nigeria (CBN) to immediately work for a unified exchange rate regime, saying the interest rate is currently too high.
Tinubu made this known in his inaugural address as the 16th President of Nigeria.
According to him, “Subsidy can no longer justify its ever-increasing costs in the wake of drying resources. We shall instead re-channel the funds into better investment in public infrastructure, education, health care and jobs that will materially improve the lives of millions.
“Monetary policy needs thorough housecleaning. The Central Bank must work towards a unified exchange rate. This will direct funds away from arbitrage into meaningful investment in the plant, equipment and jobs that power the real economy.
“Interest rates need to be reduced to increase investment and consumer purchasing in ways that sustain the economy at a higher level.
“Whatever merits it had in concept, the currency swap was too harshly applied by the CBN given the number of unbanked Nigerians. The policy shall be reviewed. In the meantime, my administration will treat both currencies as legal tender”, the President said.
He assured Nigerians that the mandate given to him was not displaced.
“The confidence is there. hope is back, just let us be united”, he said.
More to come….