Unified exchange rate to save Nigeria from financial hemorrhage – President Tinubu

Nigeria’s President, Bola Ahmed Tinubu, has revealed that his administration implemented a unified exchange rate in order to save the country from a financial crisis.

This announcement was made in a statement released by Dele Alake, the Special Adviser on Special Duties, Communications, and Strategy, following Tinubu’s engagement at a civic reception held in his honour by the Lagos State Government at the Lagos House, Marina.

President Tinubu stated that although he had the option to maintain the previous multiple foreign exchange systems and benefit from them, he chose to unify the official and parallel market rates for the sake of the country.

He emphasized that his decision to implement a managed float, similar to his approach to fuel subsidy removal, was in the best interest of Nigeria, and it was crucial to make these decisions early in his administration.

  • “I could have chosen to share the benefits by participating in the arbitrage, but I am not here for personal gain. That’s not why you voted for me,” President Tinubu stated.

He further emphasized the need to take action on fuel subsidies to stop the financial bleeding, leaving no choice but to address the issue promptly.

Resource Control

President Tinubu also highlighted the importance of effectively controlling and managing Nigeria’s resources to fulfil obligations to the Nigerian people.

He expressed his commitment to an open-door policy and called for partnerships to rescue and transform the nation.

  • “The assignment is greater than personal interests. We must do the job,” he asserted.

Support from Nigeria Governors’ Forum

Abdulrahman AbdulRazaq, the Chairman of the Nigeria Governors’ Forum (NGF) and Governor of Kwara State expressed the readiness of state chief executives, regardless of party affiliations, to cooperate with President Tinubu for the betterment and safety of all citizens.

  • “The NGF is delighted that both the President and Vice President are alumni of the Governors’ Forum. We are committed to working with a federalist who is determined to make things happen in a truly federal system. We reiterate our support for a renewed hope agenda, regardless of party differences,” AbdulRazaq affirmed.

Day One Reform

During his inauguration a month ago, President Tinubu declared his government’s decision to unify the exchange rate, replacing the multiple exchange rate regime implemented during the previous administration.

He emphasized the significance of a unified exchange rate and the need to redirect funds from arbitrage into meaningful investments.

Additionally, he called for a reduction in interest rates, describing the current rates as detrimental to both the people and businesses in Nigeria.

President Tinubu’s Statements

  • “The central bank must work towards a unified exchange rate… They should redirect funds from arbitrage to meaningful investments.
  • “We need to bring down interest rates. They are currently too high, which is harmful to the people and businesses. We must address these issues.”