NANS debunks call for CBN governor’s sack over rising external debt, exchange rate

NANS debunks call for CBN governor’s sack over rising external debt, exchange rate

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In this article, you will get all the information regarding NANS debunks call for CBN governor’s sack over rising external debt, exchange rate

From Priscilla Ediare, Ado-Ekiti

The National Association of Nigerian Students (NANS), has dissociated itself from the report calling for the immediate dismissal of the Governor of the Central Bank of Nigeria (CBN), Dr. Godwin Emefiele over rising external debt and exchange rate at the international market.

The call for Emefiele’s resignation had emanated from a section of the body.

Com Adegboye Olatunji, a leader of NANS, had made the call on Tuesday citing incompetence
in the administration of the regulatory financial institution.

Countering the report, the students’ body said the demand did not originate from NANS but from some elements seeking attention by all means, noting that it would rather work with the federal government to fashion ways Nigeria can be relieved from the current financial status.

Reacting to the call in a statement signed by NANS’ Zone D Coordinator, Com. Stephen Tegbe and Public Relations Officer, Emmanuel Esiegbe, on Friday, the duo specially called on Nigerians to be cautious of the activities of some impostors in NANS, whom they accused of causing confusion in the system by making inflammatory comments that can further destabilize the system. .

Tegbe submitted that in the area of ​​external debt, sub-Saharan Africa has a collective external debt profile of $868 billion and that of Nigeria stood at $39.69 billion as of March 2022, while Egypt with about half Nigeria’s population had $157.8 billion.

According to a Telegraph report by Ambrose Evans-Pritchard, from the 4th quarter of 2021 to the first quarter of 2022, the US monetary base has depleted drastically from a peak of $6.47 trillion to $5.57 trillion, and at an annual contracting rate of 24pc. in dollar terms.

“The pressure on the dollar is a serious setback for the $12 trillion offshore dollar lending market. As we all are aware, one of the major revenue generators for commercial banks is the lending business therefore naturally affected by the law of demand and supply.

“The Russia-Ukraine conflict and the attendant sanctions have significantly affected the global market too in many ways which compound our domestic security crisis that has depleted our FDI; which are also gateways for an influx of foreign currencies in circulation”.

Agreeing that it is the statutory responsibility of the CBN to stabilize the currency, Tagbe said the institution’s policies like ‘The Naira 4 Dollar Scheme’ was initiated to improve diaspora remittance into the domestic economy.

He added further: “CBN has circulated Naira to encourage domestic production and consumption to reduce strain on the dollar through exportation.
CBN made N50 Billion available as a loan facility for small-scale and medium-scale enterprises that were hard hit by the COVID-19 pandemic.

“Through NIRSAL, CBN has supported agribusinesses with agro-possessing businesses having the support of up to N73 Billion. The CBN in partnership with the Ministry of Youth and Sports Development provided a credit facility in the National Youth Investment Program (NYIP) which has had tremendous impact on students and youths.

“The CBN adopted the NAFEX rate as the benchmark rate which was aimed at unifying the exchange rates so that it provides more stability for the dollar concerning the Naira which reduced the FX subsidy by 7.5%. The CBN discontinued the sales of CBN to Bureau De Change (BDC) operators which curbs the control the BDC operators had on the rate of the dollar.

“CBN extended the Naira for Dollar scheme from the IMTOs to the IEFX window. Specifically, the CBN released instructions that outline that it will facilitate payment of N65 for every US dollar repatriated and sold at the Investors and Exporters Window.

“It is worthy of note, that other plans like the Pan-African Payment System (PAPSS) are in progress that will reduce the reliance on the dollar, within African countries”.

NANS debunks call for CBN governor’s sack over rising external debt, exchange rate

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