Nigeria’s policy somersaults relating to it’s forex regime remains disconcerting and a Catch-22 situation. Any which way, the nation is bleeding. Since 2015, CBN Governor Godwin Emefiele, seems conflicted on deciding if the MDBs or the BDCs should hold sway in handling the forex marketing. In truth, he is not confident in either. This week, the CBN pulled the plug on the BDCs, when he announced the ban of forex sales to Nigeria’s nearly 3000 Bureau de Change. His reason, the BDCs were gorging Nigerians, thus propelling the Naira into a tail spin.
The Governor overlooked that the BDCs and Diaspora remittances were essentially sustaining the critical gaps in the national foreign currency market. He forgot also, that when the MDBs held sway not long ago, they engaged in ritual hoarding and round-tripping. Nigeria’s solution to this seemingly intractable forex challenge is simple: courage to scrap the two-tier forex exchange regime. CBN must find the courage to end the forex Kabuki, now. Period.
Mr. Obaze is the former Secretary to the State Government of Anambra State, Nigeria from 2012 to 2015 - MD & CEO, Oseloka H. Obaze. Mr. Obaze also served as a former United Nations official, from 1991-2012, and as a former member of the Nigerian Diplomatic Service, from 1982-1991.
Selonnes Consult Ltd. is a Strategic Policy, Good Governance and Management Consulting Firm, founded by Mr. Oseloka H. Obaze who served as Secretary to Anambra State Government from 2012-2015; a United Nations official from 1991-2012 and a Nigerian Foreign Service Officer from 1982-1991.