Godwin Emefiele: Financial Times Speaks on Changes in CBN, Advises FG on $10bn Subsidy Gain
- The FT said the Nigerian government needs to explain the uses of the gains from fuel subsidy
- It said the government can make direct payments to the most vulnerable or improve public projects
- It added that the removal of the former CBN governor, Godwin Emefiele, smacks of political revenge
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The Financial Times (FT) has said although the Nigerian government is $10 billion better off after removing the fuel subsidy, it needs to explain how it will use the money to improve people's lives.
It stated this in a post titled, "Nigeria's economic reforms need to regain momentum"
Source: UGC
The British newspaper suggests the government can make direct payments to the most vulnerable or set out plans to bolster public services such as health and education.
According to the article, President Bola Tinubu has not done enough to defend the policy, adding that his administration has kept mum so far.
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Changes at the CBN
The CBN adjustments were labelled as "half-cooked" by FT. Even though it agreed that the removal of the former governor, Godwin Emefiele, was long overdue, it added that the way it was done—at first, by accusing him of possessing firearms—was strange and typical of political retaliation.
The new currency rate regime, it continued, has still not been well explained.
The new CBN governor
It stated that the selection of Olayemi Cardoso, a former Citibank Nigeria chief, as central bank governor may stabilise the CBN given that markets think Cardoso is a competent choice.
It also said the next governor will need to raise rates at the following policy meeting to prove his ability to combat inflation.
It, however, encouraged Tinubu to reestablish institutional independence by allowing the bank to carry out its duties.
According to FT, the president must be more engaged and vocal when outlining his plans to a critical audience.
The president of Nigeria was also warned not to make plans public without having a clear notion of how to carry them out.
Tinubu's government serviced CBN loan with N912.32bn in 3 months as debt profile hits N87trn
Legit.ng earlier reported how the Nigerian government paid an interest of N912.32 billion in the first three months of 2023 on the loans it obtained from the CBN.
The Budget Office revealed the amount in the 2023 Budget Implementation report for the first quarter.
The amount spent paying interest on the loan is about 161.47% higher than the N348.92 billion spent in the same quarter last year.
Source: Legit.ng
