Why I Cannot Sack Emefiele, Remove Fuel Subsidy, Buhari Says

Why I Cannot Sack Emefiele, Remove Fuel Subsidy, Buhari Says

  • The governor of the Central Bank of Nigeria is not going anywhere, anytime soon, going by what Buhari is saying recently
  • In an Interview, Buhari said Emefiele is following an alternative economic models, thereby resting the rumours that Emefiele could be sacked
  • Buhari also stated that his government is not keen on removing fuel subsidy anytime soon as most western countries are adopting fuel subsidies

President Muhahammdu Buhari has stated the reason the Central Bank of Nigeria’s governor, Godwin Emefiele is still in office despite what many said is a political stance of Emefiele, the rising inflation, tumbling naira and chocking cost of living.

In a interview, with Bloomberg, Buhari expressed deep confidence in the Emefiele-led Central Bank and the bank’s ability to handle Nigeria’s economic woes, stating why his government has not removed the fuel subsidy.

CBN, Buhari, Emefiele, Fuel Subsidy
Presidient Muhammadu Buhari and Godwin Emefiele Credit: Anadolu Agency / Contributor
Source: Getty Images

Blighting report by World Bank makes Nigeria's economy look bad

This is despite the report by the World Bank, stating that multiple exchange rates, trade restrictions and public deficit financing are factors that could damage Nigeria’s business environment.

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The Washington-based bank said the apex bank’s low-interest loans continue to harm commercial banks which lend on risk-adjusted pricing and need to be scaled down, the Nairametrics report said.

Buhari, in answering questions on why his government has left fuel subsidy despite calls from different quarters for its removal, said most western countries are waking up to the realities of fuel subsidy.

He said the western countries are learning the hard way and what looks good on paper is not practicable, stating that his government halted subsidy removal last year after consultations with stakeholders which found that removing subsidies is untenable.

Nigeria waiting for Dangote and BUA refineries

He said Nigeria is waiting for three refineries belonging to the Dangote Group, BUA Group and the Waltersmith Refineries to come on stream to reduce the shocks caused by fuel imports in Nigeria.

About the independence of the Central Bank under Emefiele, especially concerning the governor’s political stance, Buhari stated that the decision of removing a central bank governor lies with CBN’s board of directors despite being appointed by the President and confirmed by the Senate.

He praised Emefiele and said the ex-Zenith Bank helmsman is following alternative economic models that Nigeria should adopt.

He said:

“Instead, the governor is following an alternative economic model that puts people at the heart of policy. Nigeria should be free to choose its development model and how to construct our economy, so it functions for Nigerians.”

Nigeria’s inflation has been on the rise in the past 11 months, going from 16.82 per cent in April to 17. 71 per cent in June, according to data from the National Bureau of Statistics (NBS).

President Buhari sacked Godwin Emefiele? Here is what CBN says

Recall Legit.ng reported that the Central Bank of Nigeria (CBN) says it is not aware its Governor Godwin Emefiele has been sacked.

The Nation reported that CBN’s spokesman Osita Nwanisobi said he read the report of Emefiele's purported sack in some media like everyone else.

Other CBN staff also claimed they are not aware of Emefiele’s sack as widely reported.

Source: Legit.ng

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