News

CBN Governor Urges Patience As Naira Struggles; Market Forces Approach Adopted

Published

10 months ago

Feb 23, 2024.

Eko Hot Blog reports that in a bid to address the challenges facing the Nigerian Naira, the Governor of the Central Bank of Nigeria (CBN), Dr. Olayemi Cardoso, pleaded with Nigerians to exercise patience, assuring that the apex bank is tirelessly working to strengthen the national currency.

The appeal came during the 2024 public lecture on ‘Recent Developments in a Nigerian Foreign Exchange Market: Issues, Options and Way Forward,’ organized by the Nigerian Economic Society at the CBN Centre of Excellence Hall, University of Ibadan.

EDITOR’S PICKS

Represented by Dr. Usman Opanachi of the Department of Monetary Policy, CBN, Governor Cardoso acknowledged the pervasive impact of the exchange rate on various sectors, citing high inflation and excess demand for forex as longstanding challenges.

He stated, “Anytime the Naira is on trial, the CBN is also on trial. We are working day and night to address the challenges and we hope things will work out.”

“The exchange rate features nearly in every sector. The exchange rate and inflation are very high now. The exchange rate is a problem. Excess demand for forex in Nigeria is a legendary problem. It has just been there and over the years, the bank has implemented various strategies to address this problem. Those strategies have only been able to provide some temporary relief.”

“The Central Bank of Nigeria does not supply or produce dollars. It is the naira that it produces. The CBN management thinks when you hold the price of a commodity that is determined by forex down artificially, a time comes when you will not be able to do that.”

“The thinking of the new management of CBN is that the policies you have are intended to address the problem. The approach the management has adopted is the market forces approach. The bank now allows the market forces to play a greater role in the determination of the price of naira.”

In Osun State, a coalition of civil societies took to the streets of Osogbo, protesting against the prevailing hardship in the country.

Despite the early morning rain, members of the coalition gathered at Nelson Mandela Freedom Park, moving through Old Garage, MDS, and Olaiya to address residents. Chairman of the coalition, Mr. Waheed Lawal, declared the awareness protest as a precursor to a larger demonstration on Monday, aiming to draw attention to the struggles of Nigerians.

He said, “This is just awareness for the protest that will come up on Monday. We are mobilising to the streets to make those in government realise that Nigerians are dying of hunger.”

Governor Babajide Sanwo-Olu of Lagos State unveiled a series of intervention measures to alleviate the economic challenges faced by residents.

In a live media chat called ‘Sanwo Speaks,’ the governor announced a 25% reduction on foodstuff purchases exceeding N25,000. Other interventions include the establishment of soup kitchens, Sunday markets with discounted rates, free delivery in hospitals, and health missions.

He said, “This administration is working towards putting interventions in place across different sectors to reduce and ameliorate the sufferings of Lagosians.”

“We will open soup kitchens/bowls where identified caterers (mama put) at least 1,000, will be employed across local government areas to feed those who need it, once daily.”

“Beneficiaries will get vouchers to be able to access the kitchens. We will also be having food purchases and redistribution to people who need it, especially as we are currently expecting about 100 trailer loads of rice and grains.”

“Also, we will be having Sunday markets in 42 identified markets where people can buy cheaply at discounted rates.

Purchase will however be limited to N25,000 to ensure that those who need it benefit from the initiative. There will be free delivery in all general hospitals (normal and caesarian section), and a rebate on certain medications. Six health districts will be holding free health missions twice a week for the next three months.”

Governor Dapo Abiodun of Ogun State disclosed plans to sell 100 trucks of rice at reduced rates to alleviate the impact of soaring prices of goods.

The governor assured free allocation to the poor, elderly, and vulnerable, with the purchased rice set to arrive shortly. He said, “We have decided to give our people foodstuffs like rice, garri, beans. I have ordered almost 100 trailers of rice, they will start offloading them tomorrow (today).”

“We have decided that the poor, the elderly, and the vulnerable will be given the rice free of charge, while others will have to buy the rice at the price we formally bought it.”