By Obalakun Ayomide
The Emir of Kano, Lamido Sanusi Lamido, Muhammadu Sanusi ll of Kano while speaking with BBC Africa on Business Report remarked against the refusal of President Muhammadu Buhari to devalue the Naira.
He advised that the FG needs clarity of thinking in the handling of the foreign exchange policy.
The Emir belives that the naira has already been devalued.
He argued that since the value of Naira is what you can get for it, then since Naira has fallen in value and no more at its former rate, then the argument against devaluation is misunderstood because Naira has already been devalued.
He explains that what is happening is that the government has chosen to sell its own dollar at subsidised rate to peivate sectors.
“For every $1 billion that the central bank sells, it has transloaded N100 billion to the private sector – that’s what is happening. “So you got a huge arbitrage opportunity, which either way undermines the government’s anti-corruption stance.
“You also take so much money away from states and local governments, because this is money that from oil proceeds, from PPT, royalties, that should go to education and healthcare for the poor.
“While the president is looking at the pain inflicted on the poor, by high prices of import, he also needs to look at the pain inflicted on them by taking away revenue that could go into education and healthcare.”
The Emir also commended the President for transparency, removal of subsidy and other structural reforms
He however emphasised the fact that the FG has to handle very carefully the issues of foreign exchange policy
He opines that subsidizing exchange rate makes imports cheaper and so will not help to reduce import or encourage domestic productions as the government has in mind but rather undermine it.
He further advised that although he believes, concerning the issue of the last administrations corruption, that the perpetrators of the act oc corruption should be brought to book, the Buhari led administration should go past recovering loots to building institutional systems.
On the Boko Haram insurgency, he opines that the insurgency doesn’t end overnight but that the people and the Government should work together against the insurgents.
CoNnect Media House