Nigeria's President Bola Tinubu expressed his view on the state of the country's financial system under the suspended governor of the central bank, Godwin Emefiele, during an event in Paris.
President Tinubu stated that the system was severely damaged during Emefiele's tenure, describing it as "rotten." Emefiele has been in the custody of Nigeria's secret police since his suspension on June 10, and the office of the Secretary to the Government of the Federation has confirmed that he is under investigation.
President Tinubu also highlighted the steps his administration has taken to address financial issues. One significant measure was the reversal of the multiple exchange rate system, which had allowed for a large disparity between the official and parallel market exchange rates. This system had been exploited by speculators engaged in round-tripping. Although a slight difference still exists between the rates, the government aims to establish a unified exchange rate.
Additionally, President Tinubu addressed the removal of subsidies, particularly on petrol.
He emphasized the unsustainability of the subsidy and the negative consequences associated with it, such as encouraging smuggling and subsidizing neighboring countries. The removal resulted in a significant increase in petrol prices nationwide. President Tinubu explained that his government is working on provisions to mitigate the impact of the subsidy removal and emphasized the need for funds to be allocated to palliative measures.
President Tinubu also mentioned his successful approach in avoiding mass protests by labor unions against the subsidy removal. He emphasized that the government intends to use the saved funds to provide palliative measures, such as improving transportation. President Tinubu urged unity and expressed determination to navigate the challenges ahead, stating that Nigeria and its neighboring countries must address the issue of fuel subsidy together.
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