Obi: Nigeria’s fiscal challenges caused by weak governance structure NOT Emefiele

Peter Obi, presidential candidate of the Labour Party (LP), says Nigeria’s current inflation and exchange rate crisis should be blamed on its fiscal rascality, not Godwin Emefiele, governor, Central Bank of Nigeria (CBN).

Obi said this on Monday while speaking at the Chatham House in the United Kingdom.

The former Anambra governor was responding to a question on how his government would relate with the CBN governor.

Last month Nigeria’s inflation eased to 21.34 percent, while the naira has continued to depreciate against the dollar at the parallel and official sections of the foreign exchange market.

Speaking on both issues, Obi noted that the “monetary space must take over and support” in order to quell the policy issues in the country.

“First let me assure you, the central bank will maintain its independence. It will be respected. Again, it is not the problem of the person there (Emefiele). The Central Bank has a role of monitoring policies. Then, you have the fiscal space, ” he said.

Obi added that the root of the problem lies in a weak governance structure.

“It is because there is a weak governance structure, that is why we are able to do what we are doing today and that is why what is happening is happening,” he said.

“Replacing Godwin Emefiele and putting somebody with that level of fiscal rascality — which is what is fueling our inflation and our rate of exchange today — and as long as the government continues on that fiscal rascality, that situation will occur. That is what you need to fix.”

He also noted that the said fiscal rascality was reflected in the payment of unsustainable petrol subsidy, which he said was a criminal situation.

“Nigeria is today the only oil nation apart from Venezuela, because of sanctions, that is not meeting up its quota because over the years of oil theft, the multinationals have not been investing. Coupled with the theft and everything we are not realising what we are supposed to do,” he said.

“Every other nation that is in the same condition was able to bring down their rates and inflation within this period of Ukraine war. But we couldn’t take that advantage because of poor management of our own fiscal space which will change with Datti and I.”