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Vice President Kashim Shettima expressed his dissatisfaction on Wednesday with social media users who celebrated the depreciation of the Nigerian naira, which was exchanged for over N1,400 per dollar.
Shettima strongly condemned individuals who predicted further devaluation, emphasizing the importance of unity among Nigerians to counteract economic forces adversely affecting the country’s currency.
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The backdrop of rising inflation has contributed to increased prices of goods and services, prompting the Central Bank of Nigeria (CBN) to implement measures aimed at stabilizing the naira.
Among these measures, the CBN issued directives for banks to sell excess dollars, and President Bola Ahmed Tinubu instructed the CBN to take control of crude oil sales from the Nigerian National Petroleum Company Limited (NNPCL). These moves are part of a broader strategy to mitigate the challenges facing the naira in the foreign exchange market.
Addressing the root causes of the naira’s decline, there is a prevailing issue of corruption and insider abuse within the financial system. Some commercial banks stand accused of manipulating the system for their profit, particularly by holding large stocks of foreign currencies.
The CBN has issued warnings against speculative activities and urged commercial banks to adhere strictly to existing regulations. In response to these measures, bureau de change operators took the drastic step of shutting down operations, leading to a spike in the black market exchange rate, with the dollar reaching N1,500.
President Tinubu’s directive for the CBN to take over crude oil sales from the NNPCL faced criticism on legal grounds. However, supporters view this move as a positive step toward enhancing transparency in managing Nigeria’s foreign exchange earnings.
There is a concern that allowing the NNPC, now labeled a private entity, to maintain control over oil sector operations could perpetuate opaque practices. While opinions differ on Tinubu’s directive, it signifies a proactive approach to instilling transparency in the nation’s economic management.
To address the core issues contributing to the naira’s challenges, attention must be directed toward unethical practices within some commercial banks. The government needs to conduct thorough investigations and implement penalties for institutions found engaging in such activities.
The ongoing efforts by the Tinubu administration to tackle financial improprieties require collaboration from citizens and corporate entities. The integrity of Nigeria’s financial sector is at stake, and cleansing the system is crucial to prevent a crisis of alarming proportions.
