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HomePoliticsAtiku criticises President Tinubu's forex policy, says it lack foresight

Atiku criticises President Tinubu’s forex policy, says it lack foresight

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Ex-Vice President Atiku Abubakar has voiced concerns over President Bola Tinubu’s foreign exchange (FX) policy, describing it as hastily implemented without adequate planning and stakeholder consultations.

Atiku, the People’s Democratic Party’s (PDP) presidential candidate in the 2023 election, expressed his reservations in a statement released on Sunday.

Atiku argued that the new FX management policy lacked foresight, resulting in unforeseen negative consequences. He specifically criticised the government for not granting the Central Bank of Nigeria (CBN) the autonomy to design and implement a robust FX management policy that could address issues such as liquidity increase, demand regulation, resolution of FX backlogs, and rate convergence.

In his assessment of the current economic situation, Atiku pointed out that he foresaw the country’s economic challenges during the twilight of Muhammadu Buhari’s administration.

He criticised Tinubu’s policies, asserting that they continue to inflict pain on the economy, and he accused the government of lacking innovative solutions to address the crisis.

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Highlighting alternative approaches, Atiku shared policy prescriptions he proposed during the last administration to prevent the current economic downturn.

He advocated the elimination of multiple exchange rate windows, emphasising that such a system only benefited opportunists, rent-seekers, middlemen, arbitrageurs, and fraudsters.

Atiku opposed the idea of a fixed exchange rate system, citing its inconsistency with an open, private sector-friendly economy and the challenges of maintaining sufficient FX reserves.

Instead, he suggested a managed-floating system, allowing the naira to fluctuate daily but with the CBN intervening judiciously to stabilise its value, especially during speculative activities.

The former vice president underscored Nigeria’s insufficient FX reserves, unstable oil production, and limited foreign investment as reasons to exercise greater control over the FX market in the short to medium term.

Atiku concluded by expressing optimism that the Nigerian economy could rebound with sound counsel, coupled with addressing corruption and poorly negotiated foreign loans.

(Edited by Oludare Mayowa; omayowa@globalfinancialdigest.com; Newsroom: +234 8033 964 138)

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