Former Vice President Atiku Abubakar has launched scathing criticism against the government of President Bola Tinubu, attributing Nigeria’s deepening economic woes to what he termed as hastily implemented foreign exchange (FX) policies. Abubakar’s remarks come amidst growing concerns over the Nigerian economy’s stability, with the naira witnessing a sharp decline against the US dollar, reaching N1,700/$ in recent trading sessions.
Abubakar, a former presidential candidate of the Peoples Democratic Party (PDP), accused the Tinubu administration of failing to devise effective strategies to address the country’s FX crisis. Speaking via his social media platform, Abubakar lamented the lack of concrete steps proposed by the government during discussions aimed at mitigating the economic downturn.
“The way President Tinubu’s government’s FX policy was hurriedly put together is the reason for the present state of things in Nigeria,” Atiku asserted, highlighting what he perceives as a lack of foresight in policy formulation.
Atiku further criticized the government’s handling of the Central Bank of Nigeria (CBN), alleging interference that hindered the institution’s ability to implement sound FX management policies. He emphasized the importance of granting the CBN independence in crafting measures to address liquidity challenges, regulate demand, and achieve exchange rate convergence.
In proposing solutions to alleviate the economic hardship, Atiku advocated for the elimination of multiple exchange rate windows, which he argued only serve to benefit opportunists and intermediaries. He suggested the adoption of a managed-floating system to stabilize the naira’s value, emphasizing the need for judicious control to curb speculative activities.
Atiku’s critique comes against the backdrop of the naira’s persistent depreciation, with the currency breaching the N1,500/$ mark in the official market. Additionally, forex turnover witnessed a significant decline, plummeting by 74% to $84.10 million in the Nigerian Autonomous Foreign Exchange Market (NAFEM).
The former vice president’s comments underscore mounting concerns over the effectiveness of government policies in addressing Nigeria’s economic challenges. As the country grapples with inflationary pressures and dwindling forex reserves, stakeholders await decisive actions to stabilize the economy and restore investor confidence.
