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BREAKING: Tinubu to sack new CBN governor, deputy governors, over continuous naira depreciation

CBN and the presidency sources confided in our reporter that President Tinubu, who expressed serious disappointment over the failure of the apex bank to bring down the exchange rate, following the floating of the naira, has vowed to sack not only the governor, but all the deputy governors if nothing is done to bring ....

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Tinubu to sack new CBN governor, deputy governors, over continuous naira depreciation 

 

Tinubu has vowed to sack not only the governor, but all the deputy governors if nothing is done to bring down the exchange rate to N900 per the dollar within the next two months.

Following what he considered an unacceptable exchange rate of the Naira against the dollar, President Bola Ahmed Tinubu has given a marching order to the Governor of the Central Bank of Nigeria (CBN) to reverse the upward trend or should be prepared to be shown the way out.

 

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Specifically, President Tinubu threatened the CBN Governor, Mr Olayemi Cardoso with a sack if he failed to get the needed value for the Naira by reducing the extremely high exchange rate between the dollar and naira that is presently pegged at over N1,640 per dollar.

 

 

CBN and the presidency sources confided in our reporter that President Tinubu, who expressed serious disappointment over the failure of the apex bank to bring down the exchange rate, following the floating of the naira, has vowed to sack not only the governor, but all the deputy governors if nothing is done to bring down the exchange rate to N900 per the dollar within the next two months.

 

“It is fire on the mountain right now in the CBN as the President has vowed to sack the CBN Governor and Deputy Governors in the next two months if nothing is done to have the dollar exchanged for N900. They are running all over the place to pull all stops and ensure the exchange rate is reduced.

 

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“Not even the revocation of over 4,000 BDP operators’ licenses has helped reduced the high exchange rate. Despite the revocation, it is business as usual as the sale and buying of the dollars and other foreign currencies are ongoing unhindered,” a top government source lamented than disclosed.

 

News Week Nigeria further gathered that the President is convinced that under-the-table deals and outright manipulation by commercial banks, in collusion with the CBN officials, are some of the major reasons behind the high exchange rate described as capable of rendering the naira into a worthless currency.

 

“Tinubu is convinced that by now, a reduction in the exchange rate of the dollar to the naira should have been visible since he ordered the CBN Governor to take over crude oil payment receipts, a function that was previously carried out by the Nigerian National Petroleum Company Ltd (NNPCL).

 

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“The order for the CBN to take charge has provided no respite, as the NNPCL is only producing for crude oil already paid to the previous Buhari-led administration that sold the oil in advance.

 

“The Buhari-led government sold our future when they collected payment for future crude oil production. What the CBN is simply doing now is documenting receipts of money paid to the previous government.

“Considering the import dependent of the Nigerian economy, the dollar is scarce. Since we import almost everything and produce barely nothing, the exchange rate will continue to fly to a frightening level,” said the source

 

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However, our reporter’s findings revealed that Tinubu’s threat to sack the top echelon of the apex bank may not bring any positive outcome, as problems associated to low liquidity of the dollar must be combated before saving the local currency that was printed uncontrollably to the tune N22 trillion during the eight years of former President Muhammadu Buhari-led administration.

 

A senior top government official who pleaded not to be named, said if the naira must be saved from its cascading fall, the need to get a foreign loan to stabilise the naira is imperative, adding, “as long as the demand of the dollar is high, so long will the exchange rate would remain in the ceiling”.

 

At the popular Wuse Zone 4, BDC operating zone, Abuja, the buying and selling of the dollar was ongoing but, an approaching truckload of policemen forced buyers and sellers to scamper into the plazas, as deals continued unimpeded at the weekend, when this correspondent visited the area.

 

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Following the revocation of the licenses for BDC operators, Nigerians have called on the CBN to set their prying eyes on commercial banks that were engaged in subterranean manipulation of the foreign exchange market for round-tripping.

 

In the words of someone privy to the dark side of a relationship existing between banks and BDCs, “Before now, many BDC operators, now banned, were mainly owned by top security personnel, including former IGPs and military generals. Now that they have been barred, the CBN is presently engaged in cleansing the Augean stable.

 

“For now, the head of the snake may have been cut off, the snake is still undergoing the pains of death throes. It would take a while for the problem to be tackled, if all things remain equal”.

 

According to a report by the Economic Intelligence Unit (EIU) that was released last Friday, for Tinubu to stabilise the naira, the CBN “may need to resort to foreign borrowing to support the naira and fulfil its foreign exchange obligations”.

 

Despite suffering a second devaluation of about 45 percent in February, the naira was tagged, according to analysts, “the second-worst-performing currency in the world, after the Lebanese pound”.

 

The EIU report warned that the implementation of both floating of the naira and fuel subsidy removal, described as “the biggest economic shake-up in a generation” risked mass protests and strikes.

 

A retired military versed in global financial matters told this reporter that the rolling out unpopular market reforms and attack on corruption may save the day but foreign borrowings are urgently needed to save the naira

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