Tinubu’s Forex Policy: A Rushed Approach Lacking Strategic Planning, Atiku Claims
In recent times, Nigeria’s economic landscape has faced considerable challenges, impacting citizens’ ability to afford basic necessities. At the heart of these challenges lies President Bola Tinubu’s economic policies, according to Atiku Abubakar, the Peoples Democratic Party’s presidential candidate in 2023. Among the criticized policies, the unification of the exchange rate stands out as a decision that was hastily implemented, lacking in both adequate planning and essential stakeholder consultation.
Atiku has voiced his concerns, suggesting that the economic direction under the former President Muhammadu Buhari was on a precarious path, a trajectory seemingly continued by the current administration. Despite expectations for Tinubu’s regime to present viable solutions to the economic downturn and foreign exchange crisis, Atiku argues that the new administration has yet to offer concrete policy measures to alleviate the nation’s financial woes.
During a crucial meeting aimed at addressing these issues, Atiku notes that President Tinubu failed to outline specific steps his government intends to take, instead requesting patience and time to refine their strategy—which, according to Atiku, has so far only exacerbated the hardships faced by Nigerians. This lack of actionable plans, he argues, underscores a significant “poverty of ideas” in addressing the country’s economic challenges.
Atiku emphasizes, “The wrong policies of the Tinubu administration continue to cause untold pain and distress on the economy and the rest of us cannot keep quiet when the government has demonstrated sufficient poverty of ideas to redeem the situation.” He insists that viable paths exist out of the current crisis, should the government move away from its hubristic stance.
In the run-up to the 2023 presidential elections, Atiku’s policy document “My Covenant With Nigerians” highlighted his approach toward reforming the foreign exchange market. He criticized the existing multiple exchange rate windows benefitting only a select few, while proposing the adoption of a managed-floating exchange rate system. This system would allow for occasional adjustments by the Central Bank of Nigeria (CBN) to stabilize the Naira, ideally curbing speculative activities detrimental to the economy.
Atiku’s argument rests on the premise that Nigeria’s foreign reserves are too unstable and insufficient to support a free-floating regime. He points out the country’s declining oil production and the inadequate flow of foreign investments as critical issues that necessitate a more controlled approach to foreign exchange management in the short to medium term.
However, Tinubu’s recent foreign exchange policy has been critiqued by Atiku for being “hurriedly put together” without the necessary planning and stakeholder consultations. This approach, according to Atiku, neglected potential negative impacts and failed to grant the CBN the independence required to implement a robust foreign exchange policy. Such a policy, in his view, should address liquidity improvement, demand regulation, backlog issues, and rate convergence effectively.
As Nigeria navigates these economically turbulent times, the debate over the best path forward continues. Stakeholders and citizens alike are closely watching the unfolding policies, hopeful for strategies that will stabilize the economy and improve living conditions across the nation.
