On Thursday, the Lagos state government hosted a civic celebration at the Lagos mansion, Marina, in the president’s honor where the president gave a speech on why he choose to unify Exchange rate in Nigeria. According to a statement by Dele Alake, the president’s special assistant on special assignments, communications, and strategy, Tinubu said he made the choice in the interest of the country, just as he did when he eliminated the subsidy on gasoline. The president argued that those significant moves needed to be made as soon as his government began. I could afford to take part in the arbitrage and share the profits, but please, no! You didn’t vote for me for that reason, he said.
“We must move quickly to address gasoline subsidies in order to stem the financial hemorrhaging. We are powerless, he said.
According to Tinubu, the government would “re-engineer the effectiveness of the control and management of our resources in order to meet the obligations to Nigerians by political officeholders” as a method to ensure effective use of the resources at hand.
Additionally, he asked the governors in attendance for their assistance in ensuring the equitable growth of the nation.
“Our collaboration will be based on an open-door philosophy. Nigeria’s economy will be turned around from the point of no return. I want us to work together to save our country and restore it to its former glory, he added.
The Central Bank of Nigeria announced on June 14 the unification of all currency exchange (FX) market divisions, suggesting that the exchange rate will fluctuate based on market supply and demand.
The naira gained 0.67 percent on Tuesday, reaching N763 to the dollar at the Investors and Exporters (I&E) window.
The new monetary policy adopted by the central bank came after Tinubu stated that “monetary policy needs thorough house cleaning.” A single exchange rate must be pursued by the Central Bank.
The financial industry has also undergone other substantial reforms, such as the elimination of limits on money transfers to domestic accounts.
The apex bank set a daily transaction cap for contactless payments of N50,000 on Tuesday.
David Malpass, the former head of the World Bank, praised Tinubu’s reforms and stated that Tinubu was “taking concrete steps to scrap Nigeria’s harmful government subsidies and multiple exchange rates.”
These actions will help the most populous nation in Africa achieve monetary stability, lower inflation, and less corruption, he continued.