Tinubu’s Hurriedly Put Together Forex Policies Responsible For Present Situation – Atiku

• Atiku Abubakar criticizes President Tinubu’s handling of Forex crisis, claiming lack of concrete policy measures during recent meeting
• Atiku proposes Forex policy solutions, including managed-floating exchange rate system, to curb exploitation and stabilize Naira’s value

Atiku Abubakar, the former Vice President and Presidential Candidate of the Peoples Democratic Party (PDP) has criticized the hurried implementation of the current administration’s Forex policies, attributing them to the current economic challenges. He expressed disappointment in President Bola Tinubu’s handling of the Forex crisis, claiming that Tinubu failed to present concrete policy measures to address the situation during a recent meeting.

According to Atiku, the government’s interference in the Central Bank of Nigeria’s (CBN) autonomy prevented the implementation of a sound Forex Management Policy, which could have addressed issues such as liquidity, demand regulation, backlog management, and rate convergence. He argued that the government’s failure to heed expert advice and address corruption and poorly negotiated foreign loans has exacerbated the economic woes.

Atiku asserted that he had proposed policy solutions during his tenure, including eliminating multiple exchange rate windows to curb exploitation by opportunists and fraudsters. He advocated for a managed-floating exchange rate system, which would allow the Naira to fluctuate while the CBN intervenes to stabilize its value, preventing excessive speculation.

In contrast, Atiku criticized the idea of a fixed exchange rate system, stating that it would not align with Nigeria’s open economy philosophy and would require substantial FX reserves, which the country lacks. Given Nigeria’s economic conditions, he argued that a fixed exchange rate system would resemble a subsidy regime and be unsustainable.

Ultimately, Atiku emphasized the need for a pragmatic approach to Forex management, advocating for policies that promote economic stability and discourage speculative activities. He urged the government to listen to expert advice and prioritize reforms to alleviate the country’s economic challenges.