By 
In a recent announcement, Ajuri Ngelale, the President’s Special Adviser on Media and Publicity, confirmed the administration’s support for the initiatives led by Yemi Cardoso at the Central Bank of Nigeria (CBN) aimed at stabilizing the naira. These efforts resonate with President Bola Tinubu’s broader strategy to cleanse the foreign exchange market of detrimental practices and manipulators.
The administration is intensifying its crackdown on market manipulators, promising Nigerians a strengthened naira that will result in noticeable reductions in the prices of basic goods by the early months of 2025.
This commitment follows the implementation of several measures by the CBN to arrest the depreciation of the naira and restore its value.
Recent CBN directives have spurred a recovery in the naira’s value, improving from a low of 1,900/dollar to approximately 1,200/dollar on the parallel market. Meanwhile, its value in the official market also saw an uplift from over 1,500/dollar to around 1,230/dollar.
Analysts attribute the naira’s resurgence to the CBN’s strategic policies, including unifying exchange rates, liberalizing the FX market, addressing FX backlog for banks and airlines, and revising Bureau De Change regulations.
These reforms have significantly disrupted the activities of FX market speculators and racketeers, with the Presidency vowing to maintain pressure on these entities.
President Tinubu has also committed to combating inflation, emphasizing that the nation’s sacrifices over the past ten months will yield rewards.
Ngelale highlighted that the administration’s multifaceted strategy aims not only at market stabilization but also at ensuring that consumer prices accurately reflect exchange rates, to prevent exploitation by businesses.
The Presidency is optimistic that the resumption of operations at both private and state-owned oil refineries will further bolster the economy and improve fiscal revenues.
Following the cessation of fuel subsidies and the unification of exchange rates, the administration faced challenges, including an initial spike in inflation and increased hardship due to rising food prices.
In response to these challenges, a minimum wage committee was established to evaluate and propose a new wage structure, reflecting the administration’s efforts to mitigate the cost of living crisis.
The CBN has also adjusted its approach to selling FX to Bureau De Change operators, aiming to stabilize the retail segment of the FX market.
Investigations are ongoing into transactions believed to undermine the economic reforms initiated by the Tinubu administration, with a focus on scrutinizing questionable foreign exchange allocations.
The CBN’s recent policies, including prohibiting the use of foreign currencies as collateral for naira loans, underscore the administration’s commitment to strengthening the naira and enhancing economic stability.
Despite these strides, the Presidency cautions that there is still much work ahead. It calls for continued efforts to ensure that the strengthening naira translates into lower prices for essential goods and services.
The administration remains hopeful, promising that the ongoing reforms will lead to significant economic improvements and a better quality of life for Nigerians.
As these policies unfold, the naira has seen an appreciation in the parallel market, reflecting the positive impact of the CBN’s measures.
Supporting the CBN’s recent decisions, the Lagos Chamber of Commerce and Industry and the Small and Medium Enterprises Development Agency of Nigeria have lauded the move to disallow foreign currencies as collateral for naira loans, emphasizing its potential to increase foreign exchange supply and support economic growth.
These developments mark a crucial phase in the administration’s economic strategy, aiming to stabilize the currency, enhance market integrity, and ultimately, uplift the living standards of the Nigerian populace.
Comments