Situation in FX market is artificial, manipulative, says Rabiu

Abdul Samad Rabiu, BUA Group chairman, has described the situation in the foreign exchange (FX) market as artificial and manipulative.

He made this known during a meeting between President Bola Tinubu and key stakeholders in the country on February 25, 2024.

Since the unification of the exchange rate windows on June 14, 2023, the naira has experienced high levels of volatility — with the local currency trading as high as N1,770/$ at the parallel market and N1,665.50/$ at the official window on February 23.

However, the apex bank has implemented several reforms to strengthen the naira and boost FX supply, including placing a limit on the repatriation of proceeds by international oil companies.

According to the businessman, the discussion was open, frank, and exhaustive.

He said some of the issues raised at the meeting were about the foreign exchange rate “which we know has always been the problem for the past two or three months”.

“We discussed on how to bring the foreign exchange rate down because we all know that what is happening as regards the foreign exchange is artificial, it is manipulative and thank God the CBN is doing quite a lot,” he said.

“Now, the exchange rate has come down from N1800 to maybe 1600 and N1500 now, and as you all know, everything in Nigeria is indexed to the foreign exchange, especially when it comes to stuff that we import into the country.”

Also speaking, Segun Ajayi-Kadir, director-general, Manufacturers Association of Nigeria (MAN), said the private sector is looking forward to the implementation of most of the decisions that were made with Tinubu.

Ajayi-Kadir said manufacturers anticipate having a conducive business environment.

“And so the issues surrounding foreign exchange, insecurity and general operating environment were discussed and we received the assurances of Mr. President that very soon we are going to start to see some major changes,” he said.

“And, I think the advisory committee that has been formed, the private sector will play a very significant role, and Nigerians, going forward should be hopeful that we are having solutions to the challenges that we have.”

Dapo Abiodun, governor of Ogun state, said all stakeholders and government officials have resolved to collaborate to solve the prevailing issues.

“All governors have resolved to join hands with Mr. president to ensure that he provides the necessary intervention to cushion the effect of what we are going through, whilst we are waiting for the implementation and the evidence of the fiscal and monetary policies that are already in place,” he said.

“So the teeming public should have that confidence that we are not leaving them alone.”

He said in Ogun state and other states, “we are bringing in rice, we are bringing food items and we are selling at rates that can be obtained before the downslide of the naira”.

Abiodun said the country is rolling out several initiatives to bring succour to vulnerable people until there is evidence of the fiscal and monetary policies.