The National Youth Council of Nigeria has accused the governor of the Central Bank of Nigeria, Godwin Emefiele’s sloppy economic management practices of the recent decline in the Naira.
The Naira in the week fell to a new low of N730 for a U.S dollar on the market in parallel.
The newspaper reported on Friday that agents of the Economic and Financial Crimes Commission searched the Wuse Zone 4 Bureau De Change hub in Abuja due to the falling value of the naira.
It was reported by the PUNCH that they have discovered that EFCC agents are looking into allegations that certain individuals are hoarding and dumping foreign currency, causing an oversupply that drives up the price in the value of dollars.
However, it appears that the NYCN issued a public statement released on Sunday by its President Comrade Solomon Adodo, faulted statements that were attributed to the CBN governor, claiming that the current decline of the Naira against the other major currencies was due to the non-remittance of dollars to the foreign reserve of the NNPC Ltd.
He stated that the claims were made “without highlighting the reality of the causative oil and non-oil related factors including a drop in Nigeria’s crude oil production, growing petrol subsidy, an unsustainable dual exchange rate system, reduction in foreign direct investments and growing dependence on importation across many sectors of the economy as disingenuous and unpatriotic”.
Adodo was slammed by Emefiele because of “completely failing to concentrate on his core mandate of price stability as the apex bank’s governor”.
He emphasized that with an inflation rate of 19 per cent and the exchange rate hovering around N800 dollars The CBN governor must be held accountable for “deepening poverty in the country as he continues to work at cross-purposes” in opposition to President Major General Muhammadu Buhari (retd. )’s goal of reducing poverty while also growing the economy.
The statement read “The NYCN is therefore shocked by the remarks of the Governor admonishing the falling of market rates in the parallel market to the NNPC while it is only an issue of monetary policy that is outside the scope by the NNPC.
“As an organization of youth, we’ve noticed the CBN was unable to CBN to quickly provide Joint Venture (JV) cash call funds through the Treasury Single Account (TSA) even though there was a good chance that Nigeria National Petroleum Company (NNPC) Ltd had adequate cash coverage, which led to the reduction of JV Partners’ faith to restart manufacturing and enjoy the rewards of today’s higher oil prices.
“We are aware that for more than three years in the present, dollar-denominated cash calls payment amounts of over $400 million that have been properly processed, have yet to be received through the CBN under the direction of Mr Emefiele.
“The combination of the CBN’s failure to immediately release the JV cash call to restore production, growing losses resulting from theft of crude oil, and deferred production has resulted in major crude oil production losses of 600,000 barrels daily.
“We are shocked to learn by the fact that Mr Governor appears to be ignorant that the country’s increasing petrol subsidy costs along with the increasing cost of servicing debts from abroad and other obligations that affect the economy. The NNPC’s remittances are affected by these. to the Federal Account.”
The statement added “History indicates how Mr Emefiele is at sea about monetary policy questions. We remember that in 2021 the CBN governor was blamed by Aboki FX for the depreciation of the Naira. Later, he blamed people who were members of the Association Bureau De Change, which resulted in the cessation of sales in dollars of the consortium. Another time He blamed the Naira’s appreciation on activities related to terrorist financing, money laundering and politicians.
“Furthermore, Nigerians are bearing the brunt of the actions from the CBN Governor, as Emirates Airlines, the flag airline for the United Arab Emirates (UAE) has halted its flights to Nigeria due to its inability to CBN to return around $85 million of revenue. Did the inability of the CBN to return Emirates funds not be caused by the NNPC?
“From all indications, since his unsuccessful presidential campaign as well as his denial from his party, the All Progressives Congress, a party based Emefiele is doing his best to discredit the accomplishments that President Muhammadu Buhari and this should not be tolerated anymore.
“As Nigerians concerned about the future of the country, and before when Mr President Eemefiele heeds our request to deliver the Mr Eemefiele packing from the CBN We suggest that the CBN examines, among other options, the World Bank’s advice of implementing a single market-responsive sustainable exchange rate that will improve access to foreign exchange through clearly defined regular auctions of forex and signalling a new dedication to stability in prices as a main purpose of the apex banking institution.
“The NYCN further expresses the optimism that the NNPC’s transitioning into a limited liability entity in line with the provisions of the Petroleum Industry Act (PIA), and its regulation now in line with the provisions of the Companies and Allied Matters Act (CAMA) would help resolve cash call payments delays as the company is now exempted from TSA, among others.”
