By Isaac Akerele
The Presidency has criticized former Vice President and presidential candidate of the Peoples Democratic Party (PDP) in the 2023 Election, Mr. Atiku Abubakar’s proposal for a controlled floatation of the naira, saying it would return Nigeria to the failed policies of former Central Bank Governor Mr. Godwin Emefiele.
In a statement on Sunday, Special Adviser to the President on Information and Strategy, Mr Bayo Onanuga said Atiku’s plan was similar to Emefiele’s policy where Nigeria spent $1.5 billion monthly trying to shore up the naira while arbitrage and round-tripping went unchecked.
Atiku argued that President Tinubu’s unification of exchange rates and other economic reforms were implemented too hastily without proper planning and stakeholder consultation. This has led to naira instability and rising food prices, Atiku said.
As an alternative, the former vice president proposed a managed float system where the CBN intervenes to control and stabilize naira fluctuations.
“Given Nigeria’s underlying economic conditions, adopting a floating exchange rate system would be an overkill. We would have encouraged the Central Bank of Nigeria to adopt a gradualist approach to FX management. A managed-floating system would have been a preferred option” he noted
Onanuga in his reply, dismissed this, saying Atiku’s controlled float idea echoes the Emefiele policy that ultimately failed to curb speculation and stabilize the naira.
Onanuga also refuted claims that CBN Governor Cardoso did not properly consult before implementing new forex management policies. According to him, recent data shows a major increase in capital inflows under Cardoso, signaling investor confidence, Onanuga said.
The back-and-forth shows tensions persists over naira instability even as the government insists its reforms will work if given time. With exchange rate at N1,500 to 1 dollar, Nigerians are at the receiving end of the debated economic policies as the presidency’s appeals for more patience from Nigerians
