Sule: Why We Must Salvage The Naira
By PHC Telegraph
Governor Abdullahi Sule of Nasarawa State spoke to the media after the 136th meeting of the National Economic Council.
With the naira steadily weakening against the dollar, ordinary Nigerians are beginning to raise serious concerns over the economic policy of the administration of President Bola Ahmed Tinubu and the impact it is having on life in Nigeria.
Since Tinubu’s arrival on the scene, and his subsequent decision to dismantle the two-tier exchange rate system shortly after the Petroleum subsidy was removed, Nigerians have watched with growing consternation as the naira comparatively weakens in the currency market.
Prior to the time the President took the oath of office, the exchange rate in the parallel market was between N700 and N750 per dollar.
Tuesday, the naira weakened to N1,000 per dollar in the parallel market, a situation that most Nigerians consider unacceptable.
While citizens and businesses reeled in pain across the country, following the trend, the National Economic Council met in Abuja to discuss the trend as exchange rate volatility continued to persist in the open market.
Rising from the meeting which held Thursday, Abdullahi Sule, the governor of Nasarawa State, said the $3 billion loan raised by the National Petroleum Company (NNPC) Limited in August will be used by the Central Bank of Nigeria to stabilise the naira.
Sule who assured Nigerians that something is being done to address their worries said the loan will be utilised by the authorities to strengthen the naira against other foreign currencies.
Urging the Nigerian masses to be patient, the Governor said the new CBN Governor, Yemi Cardoso and his deputies need time to settle down.
He expressed confidence that Cardoso and his associates at the apex bank are working to ensure that the stabilisation of the naira is achieved.
Yemi Cardoso, Governor of Nigeria’s Central Bank“The $3 billion that was taken in order to stabilise the naira. As you have seen we have a new team at the CBN and the new team that is just coming in is asking for a little bit of time in order to work out the modalities,” the Nasarawa governor added.
More than a month ago, precisely in August, the NNPC disclosed that it signed a $3 billion crude-for-cash loan agreement with African Export–Import Bank (Afreximbank).
NNPC noted after the deal was struck that the loan would be speedily disbursed to enable the oil company support the federal government’s ongoing fiscal and monetary policy reforms.