Atiku Abubakar
The presidency has criticized former presidential candidate Atiku Abubakar for his suggestion to the federal government regarding the controlled floatation of the naira as a means to prevent further devaluation.
Atiku contends that Tinubu’s economic policies, particularly the unification of the exchange rate, were implemented hastily, lacking sufficient planning and consultation with relevant stakeholders.
President Tinubu’s economic reforms over the past nine months, since assuming office, have resulted in a decrease in the value of the naira and a simultaneous increase in the value of the dollar, exacerbating hardships for Nigerians as food prices soar.
Atiku’s critique of the federal government highlights his concern, stating, “We cannot remain silent in the face of the continued adverse effects of the Tinubu administration’s misguided policies, which have only served to deepen the economic distress without offering viable solutions.”
Atiku argued that, considering Nigeria’s economic conditions, implementing a floating exchange rate system would be excessive, advocating instead for a gradualist approach to foreign exchange management by the Central Bank of Nigeria.
He suggested that a managed-floating system would be more favorable, wherein the naira might experience daily fluctuations but with the CBN intervening to stabilize its value. Atiku emphasized the need for judicious and responsible control to curb speculative activities.
In response, Mr. Bayo Onanuga, Special Adviser to President Bola Tinubu on Information and Strategy, strongly criticized Atiku’s remarks in a statement issued on Sunday, February 18, titled ‘Once again, former Vice President Atiku Abubakar got it wrong.’
Atiku’s proposed approach, advocating for a managed float of the naira, bears resemblance to Godwin Emefiele’s policy during a period when approximately $1.5 billion was expended monthly to support the naira, despite the unchecked occurrence of arbitrage or round-tripping, notably involving individuals with close ties to the centers of authority.
Onanuga clarified that the meeting held last Thursday, involving the President, his vice, and state governors, was not convened to address currency fluctuation as asserted by Atiku.
Rather, its focus was on food supply issues and strategies to significantly mitigate the volatility in food prices.
Referring to Tinubu’s appeal to governors to allow the CBN autonomy and his refusal to establish a commodity board, Onanuga remarked,
“We anticipated Alhaji Atiku would commend President Tinubu for upholding this stance and refraining from interfering with the Central Bank’s operations.”
The assertion made by Atiku, alleging that the CBN’s foreign exchange management policy was hastily devised without proper planning and stakeholder consultations, and that the apex bank is hindered by Tinubu’s government in executing a robust FX management policy addressing issues such as liquidity enhancement, demand regulation, FX backlog management, and rate convergence, is deemed false and ludicrous.
On the contrary, Cardoso’s CBN has been implementing a series of measures aimed at stabilizing the naira and mitigating market volatility, yielding positive outcomes.
The Presidency further referenced statistics from the National Bureau of Statistics for Q4 2023, indicating a 66.27% surge in capital inflow compared to Q3.
Notably, before Cardoso assumed office at the CBN in Q3, capital inflow stood at $654.65 million, rising to $1.09 billion in Q4.
The Presidency argued that this substantial increase in capital inflow signifies robust investor confidence in Nigeria and underscores the sound policy direction of the Tinubu administration, a point with which Atiku would presumably concur.
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