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From Fred Itua, Abuja
The Senate, yesterday, raised the alarm over the dire situation Nigeria’s foreign reserves, warning that reserves have gone into negative.
It also expressed worry over the debts management by the Federal Government, revealing that 95 per cent of the country’s earnings is spent on debts’ servicing.
The Senate made the revelation at the continuation of the ministerial confirmation hearing of 28 nominees sent by President Bola Tinubu.
Senate Chief Whip, Mohammed Ali Ndume, while questioning the ministerial nominee from Ogun State, Adebayo Olawale Edun, who doubles as adviser to President Tinubu on Monetary Policy, said something urgent must be done.
Nigeria Foreign Exchange Reserves was put at $35.1 billion in March, 2023 compared with $36.0 billion in the previous month, February. Nigeria Foreign Exchange Reserves is updated monthly, available from Jan 1960 to Mar 2023.
Ndume said: “95 per cent of our earnings go into debts servicing. Our foreign reserve is going into negative. The more foreign exchanges go up, the more prices of things go up.”
Edun while responding to Ndume and other senators, blamed the current monetary crisis on the previous administration. He said the foreign regime was mismanaged by the previous government.
He also warned of further depreciation of naira against major global currencies, especially the dollar, if something urgent is not done.
Edun said: “There should be a separation between Accountant-General of the Federation and Accountant-General of the Federal Government. Tinubu has been in office for two months and he has done a lot. In Lagos, technology was used in increasing revenue generation. Regarding the economy, we must remember where we’re coming from. As recently as 1990, our per capita income was higher than that of China. Today, that has changed. Wasteful government expenditure.
“In the last months, we’ve done a lot of turn around. There will be a continuous improvement in the fiscal management at state and federal levels. This will address our debt issue. It will take several months for the gains of the economic reforms to take roots. There are pains and the President is taking steps to ameliorate the sufferings of the poor. The economy has been turning around by the fiscal and monetary policies of President Tinubu.
“India achieved a lot through digital revolution. That’s what is recommended to us. Telecoms in Nigeria have promised to help us achieve this. The $800 World Bank loan has been talked about in many wrong ways. We must find a way not to throw the baby away with the bath water. Every recipient of the World Bank loan have his or her biometric captured. We need to do more to reach those outside the financial net.
“The issue of foreign exchange is uppermost in the mind of regulators now. There is no reason why we shouldn’t have a stable exchange rate if all things should work well. Same thing for the inflation. The inefficiencies and corruption involved in the management of foreign exchange in the past, are putting pressure on our economy. President Bola Ahmed Tinubu is working hard to reverse the trend. It is difficult to predict. The exchange rate for a dollar to a naira is around N700. It’s a just a warning. The naira may depreciate further.”
