Skip to main content

Nigeria must eliminate multiple exchange rates – Soludo

Charles Soludo

A former Governor of the Central Bank of Nigeria, Prof. Chukwuma Soludo, on Monday highlighted steps the Federal Government needed to return the country out of the biting economic challenges and get back on the path of growth.

Soludo said policymakers must get the country out of the current multiple exchange rates’ regime and reduce the wide spread between the official and parallel market exchange rates of the naira to a maximum of three to five per cent.



The currency currently has about five exchange rates, according to analysts.

The former Governor of the Central Bank of Nigeria, who was the Chairman of the Economic Discourse organised by the Institute of Chartered Accountants of Nigeria, spoke in Lagos while fielding questions from journalists shortly after the event.

He pointed out that policymakers were expected to be taking bold steps that would navigate the country away from crude oil dependency to a non-oil economy on the long run.

Soludo commended steps taken by the CBN in the last few weeks to restructure the foreign exchange market, but stressed that there was still a long way to go to get the economic back on track.

The former CBN governor stated, “With regards to exchange rate, I can see quite some changes in the last few weeks. I think some steps are beginning to be taken, but it is still quite a long way to go to get to a stable and predictable level that eliminates the premium among the multiplicity of exchange rates.

“Nigeria must get out of multiple exchange rates and we must eliminate the premium, get it back on track at a competitive exchange rate regime. The uncertainty that is created by that is so enormous; and with the oil price rising and with the increase in oil earnings, this is the time to take bold steps and do the needful.”

On how policymakers can eliminate the multiple exchange rates and close the gap, Soludo said it was simple because the nation had done it before.

He said, “On bold steps, the template is not too far. We have done it before and it is just going back to it. If it (the template) is not broken, why mend it? Get back and eliminate the multiple exchange rate regime, eliminate the premium, or at least significantly reduce it to not more than between three to maximum of five per cent premium between the parallel and official exchange rates.

“On what it takes to do it, that is basically known. Get the public finance okay; I can tell you that with the momentum of what is going on in the rest of the world, by the end of this year, we should actually be having stocks of reserves in the range of about $50bn or $60bn.”

According to Soludo, getting the country out of the current economic recession is no big deal as bringing it back to growth.

He said in spite of government policies, the country would come out of the current recession.

He stated, “And getting Nigeria structured and reengineered towards non-oil economy, that again will require a lot more serious work. The recession is not the issue. We will get out of it in spite of government policy.

“I think this is a time Nigeria should actually be making hard decisions to transit away from an oil revenue economy. And that’s the serious work.”

Earlier, the ICAN President, Mr. Titus Soetan, had said that years of neglect and mismanagement had brought the country to its present parlous state.

Highlighting the purpose of the ICAN Economic Discourse, he said, “We took a stance that the challenges confronting us needed to be identified and articulated so that short, medium and long-term solutions could be found for them.

“This is what we sought out to do by inviting experts in various fields to this discourse. We need to hear from people who have the knowledge and expertise and who can share their wealth of experience on how to move on economically as a nation in view of the urgent need to reinvent the economic wheel of the Nigerian economy.”

The Managing Director, Financial Derivatives Company Limited, Mr. Bismarck Rewane, who was the guest speaker at the event, stated that the nation’s Gross Domestic Product would expand this year by 2.19 per cent and it would go through a stage of 4.62 per cent before getting to seven per cent by 2020.”

He, however, noted that this would be based on the assumptions that Nigeria would remain an exporter of oil, produce 2.5 million barrels of oil per day, and create six million jobs within the period.

“It also means we will increase the overall tax to GDP ratio, which is about five per cent now, to about 15 per cent, and the tax policy will be more efficient and the revenue will increase  to about N350bn annually,” Rewane added.

The panellists at the event were the Managing Director of Economics Associates, Dr. Ayo Teriba; Director-General, Lagos Chamber of Commerce and Industries, Mr. Muda Yusuf; a former Deputy Governor, CBN, Dr. Obadiah Mailafia; and Partner, PwC, Mr. Taiwo Oyedele.

Teriba, in his submission, noted that the Economic Recovery and Growth Plan of the Federal Government was triggered by the shocks occasioned by the recession and worsening of the inflation record.

He said, “Nigeria’s economic crises broke out in the course of 2016. We also had foreign exchange crisis, which broke out also in 2016. Perhaps, we should have separated the crisis response from the plan. Crisis response calls for urgency. Mid last year, the currency was devalued. So, we needed the crisis response, we don’t have the luxury.

“In economic policy, there are lags. Lags are well understood. After recognising there is a response lags, what should now be fashioned is the response. There is an action lag. When you have a recession and devaluation, you want to do your best to shorten the lags. Yusuf emphasised the need for the Federal Government to anchor its growth plans on the private sector, emphasising the role of private investments in economic growth.


Mailafia also stressed the importance of a conducive business environment to attracting foreign investors into the country in order to enhance growth.

Comments

Popular posts from this blog

Music: Rhythm - Favour mp3

Richard Adebayo as known by his stage name "Rhythm" is a Port Harcourt based artist, and one of the city's fastest rising artists. After dropping three hit singles, “Condo, Roll up and Wait", he has come with another hit single titled “Favour".

Download and enjoy.

Download Song

Jimmy Imagination World of Fashion

HOME OF MODERN CLOTHING DESIGNS ENGLISH & NATIVE WEARS FOR LADIES & GENTS.  SENATOR|WOKO|JUMPER|ETIBO|SENATOR SUIT|KAFTAN|ASOEBI|HALF AND FULL DON|BLAZER SUIT| LONG AND SHORT SLEEVE SHIRTS|TROUSERS|WEDDING JACKETS|AGBADA &T SHIRT ETC.






Music: MrEra - Dance mp3

Emmanuel Richard Angaye, known for his stage name Era, is a Nigerian based singer and songwritter.  He dropped his first single tittled ''APROKO'' . Here comes his latest single, tittled ''DANCE'', Prod by Dj Howlbert OTB.
I bet you, your gonna love this one.

DOWNLOAD

[DOWNLOAD MUSIC]: KING POKA - COULD BE US

J2B Records presents this scintillating love song titled "COULD BE US" by King Poka. As a follow up to his critically acclaimed first single LEGENDS OF THE STREETS.Get "Could Be Us" on all other music platform now!.Apple Music, iTunes,Spotify, Soundcloud, and on Tidal. 

Also you can follow KING POKAon 
Twitter@badmanpoka Instagram: @badmanpoka  Email:badmanpoka@gmail.co

DOWNLOAD MP3 HERE

Breaking: Benue women march in support of grazing law

Benue women marched round Major roads in the capital city in support of the new law prohibiting open grazing in the state. The law took effect on Wednesday, November, 1st, 2017. Details later…

BAYELSA YOUTH LEADERSHIP AWARD/INTERNATIONAL YOUTH DAY CONCERT 2018(2ND EDITION)

As we get to the Climax of Preparations for this Years International Youth day and Bayelsa Youth Leadership Awards which will hold by 4pm on Sunday 12th August 2018 in Bayelsa State Government house Banquet hall,  a lot of things has been put in place to make this Years edition better than any last Year as the Organizers will be playing host to Major National and State  Political Stake holders and Youth Leaders.

House of Reps Member, Speaker Nigerian Youth Parliament, IYC President and Chairmen with Top Government Functionaries and Youth Leaders to grace this Year's Bayelsa Youth Leadership Awards on Sunday.

According to Hon. Atti J Moses (Special Assistant to the Bayelsa State Governor/Leader Nigerian Youth Parliament) Who is the brain behind the program said they will give nothing but the best in this Year's edition.

Red carpet is to start by 2pm prompt while the main event will start by 4pm.

Please endeavor to attend.

Heavy weights - Paid In Full feat Yawngboss x lemon black

After winning Bmaa2017 HEAVY-WEIGHTS releases their first dope joint titled "PAID IN FULL" featuring multiple award winner and OAP YAWNG BOSS and  the most articulate rapper LEMON BLACK all on this  song , you miss it u miss d second coming.

The certified Rap banger was perfectly produced by lavito beats (Belgium) and mixed by Ace Ice.

Download, enjoy and please share

DOWNLOAD

Comr. Atti Moses task youths to shun cultism

Bayelsa State Youth Leader, Comr. Atti Moses has called on the Youths of Bayelsa State to desist from Cultism due to its adverse Effect on the Economic Development of the State.

Comr. Moses who also serves as the special assistant to the Governor of Bayelsa State on student affairs, said this through a statement issued by his special assistant on media, Reginald Tobin.

He stated that cultism is one antisocial activity that  has really distracted the Economic and Social development of the State.

He said “People are scared to condemn cultism at any fora because they are everywhere,  the listener might even be one. I'm not against Cultists but I'm against cultism and its negative effects.

“Recently we have witnessed Numerous Cult killings and related activities in the state. This is a very bad omen that should be control and brought  to the barest minimum at all cost  because this things affects the Economic development of our dear State, Its noteworthy that “its not only Govern…

Governor Dickson Is A Blessing to Bayelsa State Youths - Comr Moses

Senior special assistant to Bayelsa Sate governor, Hon
Comr Atti J Moses has expressed his feelings towards
the friendliness of the state governor to the youths, calling the governor a blessing to the youths.

He explained this in a recent post made via his Facebook account, he wrote


"The Glory of All Land  which is our Motto is gradually taking
its full potentials, as Governor Dickson of
Bayelsa State, the Ofuruma Pepe has engaged in
what I will call Operation “Build the Youth". The
Restoration Government of His Excellency
Started on the 14th of February 2012 from
thence the Youths of Bayelsa State have been
greatly empowered to fully Realize their
Potentials in Academics, Entrepreneurship,
Politics, Entertainment etc. Young People from
all Strata of the State have been ushered into
the Restoration Government mostly in his
Second Tenure. Without Mincing words he has
Close to 300 Young Political Appointees from
the Ages of 24-37,recently was the Appointment
of two Young Comm…

Hon. Atti J Moses commends Hon. Iworiso Markson over youth development.

Leader of the Nigerian youth parliament and Special assistant to the governor of Bayelsa State on student affairs, Hon. Atti J Moses has applauded the Bayelsa State commissioner for information and orientation, Hon. Iworiso Markson over his drive towards youth development in the state.

Hon. Atti who paid a solidarity visit to the commissioner on Monday 17th September 2018 to present an award of honour, introduced the Concept “Bayelsa youth leadership Award", it's Targeted Audience, and its  Impact on the Society.

Hon. Atti while presenting the award of honour, described Hon. Iworiso Markson as Someone who takes Youth Development Very Seriously, stating from when he was Chief Press Secretary and now Commissioner for Information and Orientation. He also urged other Commissioners in the state to emulate Hon. Iworiso Markson.

Hon. Atti thanked the Restoration Government for its Youth Development Policies and Programs by Involving the Youths in Governance which is a Capacity deve…