The Federal Government has vowed that it would not spare any unscrupulous player within and outside the country, who profit from dysfunction and opacity toward Central Bank of Nigeria (CBN) efforts of an unified exchange rate.
Minister of Information and National Orientation, Mohammed Idris who made this known in a statement released on Friday said to tackle this, regulatory and enforcement agencies of government have been working round the clock in the past few days, joining forces to address these efforts at undermining the reforms.
The Minister recalled that in line with President Bola Tinubu’s vision for a more transparent and equitable monetary policy, the CBN took the very bold step of loosening control of foreign exchange rates, allowing access to foreign exchange to take place at market rates determined on the principle of ‘willing seller willing buyer.’
He said, “As a government, we are not under any illusion that these policy moves are silver bullets, or that nothing else is required. We understand that these are foundational fiscal and monetary policy moves, upon which we must now build the superstructure of true economic growth and prosperity.
“As respected economists and experts have acknowledged, these foundational reforms will be difficult and painful for Nigerians in the short-term. At the same time, there is the consensus that they are inevitable, given just how much they have held back robust and lasting economic growth.
Idris stated that the problems govt solving are no doubt multifaceted, intertwined, and deep-rooted, which require creative, strategic, decisive, and multi-pronged solutions. “These bold moves being implemented are in full alignment with what is required.
“The CBN has been proactive, initiating a comprehensive strategy to enhance liquidity in the forex market. In addition to unifying rates, the bank has also cleared a significant amount of outstanding Forex obligations, and outlined new operational mechanisms for commercial banks, Bureau De Change (BDC) operators and International Money Transfer Operators (IMTOs).
He noted that the Federal Government is starting to see the results. “Indeed, the naira is stabilizing, and foreign exchange market is seeing a surge of inflows. Latest NBS figures show that capital importation into Nigeria rose by over 66 percent in Q4 2023, compared with the preceding quarter.
“The CBN Governor has also highlighted the fact that $1.8 billion flowed into the forex market last week, on the back of the new reforms. The emerging stability of the naira is in the interest of all. Nigerians should rest assured that the government will continue to take further steps to stabilize the naira and safeguard our economy”.
He lamented that as effort to reform and sanitise a system entrenched in long-term malpractice, the CBN’s efforts have been met with ferocious resistance from speculators and other unscrupulous players within and outside our country, who profit from dysfunction and opacity.
“To tackle this, regulatory and enforcement agencies of government have been working round the clock in the past few days, joining forces to address efforts at undermining the reforms.
“That strategic alliance has led to the intelligence-led identification, investigation, sanctioning of individuals and organizations involved in illegal activities and sabotage within the forex market.
“Relevant regulatory and security agencies have been directed to remain vigilant to ensure malpractices capable of undermining our currency are averted and that those engaged in these acts are brought to book. The government will not allow its efforts to be jeopardised”, he disclosed.
The Minister who also spoke about end to the petrol subsidy regime, recalled Tinubu’s promise made that he would channel the savings accruing from the removal into much -needed investments in public infrastructure, education, healthcare, social investment and prosperity for tens of millions of Nigerians.
He said, “Since the removal of the petrol subsidy, petrol importation has dropped by fifty percent, amounting to one billion liters monthly, according to data released by the National Bureau of Statistics.
“On a related note, crude oil production is rising steadily, increasing to an average of 1.55 million barrels per day in Q4 2023, from 1.22 million barrels per day in the preceding quarter.
“Also, monthly receipts by States from the Federal Accounts Allocation Committee (FAAC) have surged since the subsidy removal, giving governments at all levels billions of Naira in extra headroom to deliver the dividends of democracy to Nigerians”.
He reminded nigerians that the removal of the petrol subsidy was one policy decision that all the three major candidates were unanimous on, in their campaign messaging.
Idris said, “It is therefore mystifying to see people who had argued stridently for the removal, now pretending to be against it today. This insincerity does not bode well for our country and our democracy.
“We will continue to seek the patience and understanding of Nigerians as we push through these difficult times, into a season of abundant benefits and truly renewed Hope. As President never fails to emphasize, these headwinds we are facing are only temporary, and, collectively, we will surely overcome”, he said.