We have been deceiving ourselves – Nigerian govt speaks on forex crisis

The Federal Government has acknowledged making suboptimal decisions in addressing the foreign exchange crisis. In a recent discussion with journalists in Lagos, the Minister of Budget and Economic Planning, Atiku Bagudu, admitted the shortcomings.

Bagudu expressed optimism that President Bola Ahmed Tinubu’s and the Central Bank of Nigeria’s policy reforms would enhance the exchange rate. He pointed out that countries adopting a liberalized foreign exchange market, including Nigeria, have experienced improved exchange rates. Bagudu cited global indicators suggesting future improvements, urging both local and foreign investors to take strategic actions in response.

He said, “Mr. President has signed two Executive Orders. We have been deceiving ourselves; we have run a system where we no longer have dollars or foreign exchange. So even if you desire to enjoy repatriation, you don’t have to because you have boxed yourself into a corner. It has to be a willing-buyer, willing-seller market.

“There are things you can’t control. If somebody makes legislation and says that every bag of yams will cost N100, the people who hold the yams will just take them quickly back to the store and lock them. So, the steps taken by Mr President and the central bank may be inconvenient now in terms of the fluctuation, but we believe it will stabilise and get better. Countries that have chosen that route have improved on average in the long run”,