The efforts of the Central Bank of Nigeria (CBN) to hold the naira value by introducing several measures have not helped the currency and the apex bank has been criticized for this. The bank’s policies do not also go down well with the Governor of Lagos State, Mr. Akinwunmi Ambode, who said that for a virile economy, the naira exchange rate must be allowed to respond to other macroeconomic changes in the economy.
Speaking at the weekend while delivering his keynote address at the Nigerian Economic Outlook 2016 organised by the Net-Works Business Club, an exclusive Christian Business Club promoted by Redeem Christian Church of God (City of David Parish) with the aim of providing a platform to empower people towards the realization of their business potentials, the Governor, who was represented as the Special Guest at the forum by the Commissioner for Economic Planning & Budget, Mr. Akinyemi Ashade, expressed confidence in the regime of President Buhari to combat the fiscal failures of the past administration, which, he said, was responsible for the economic downturn we are experiencing following the crash in the price of crude oil.
However, he noted that the current policies must be time bound and give way for a more sustainable exchange rate policy that will bring confidence back to the system, stressing that any attempt to manage the exchange rates will create further distortions in the system which is akin to solving one problem while creating others in the process.
Ambode, therefore, urged the Central Bank to listen to the various calls by well meaning Nigerians by clarifying its long term strategy for market determined exchange rate policy which he said are genuine and should be addressed as soon as possible.