Naira vs USD: Raid On BDCs Ill-Advised – Peter Obi Tackles Tinubu Govt

Posted by Samuel on Sun 25th Feb, 2024 - tori.ng

However, reacting to the development, Peter Obi said the move by the President Bola Ahmed Tinubu’s government may worsen the country’s foreign exchange situation.

Peter Obi, the 2023 presidential candidate of the Labour Party, has criticized the Economic and Financial Crimes Commission (EFCC) for its raids on Bureau De Change operators in major cities across Nigeria, stating that the action is ill-advised.

Obi disclosed this in a statement on his official X account on Sunday.

Recall that in efforts to rescue the Naira from continued fluctuations against the US dollar, the operatives of the EFCC raided BDC operators in the Federal Capital Territory, Lagos, Kano and other states.

However, reacting to the development, Peter Obi said the move by the President Bola Ahmed Tinubu’s government may worsen the country’s foreign exchange situation.

He stated that as long as Nigeria’s economy remains unproductive and corruption-fettered, the value of the country’s currency will continue to depreciate.

“The recent reported attacks and disruption of the business activities of Bureaux de Change (BDC) operators in different urban centres across the country by Government Agencies are ill-advised and wrongly directed.

“Rather than solve the problem, the action will further escalate and worsen the exchange rate situation in the country. The BDCs are not the primary suppliers of forex, nor do they create demand. They only provide a market to sellers and buyers of foreign currency.

“As long as Nigeria remains an unproductive economy and corruption continues unfettered with people possessing unproductive excess cash, the value of our currency will continue to depreciate.

“It’s important, therefore, that government authorities properly understand the workings of a modern economy and channel their efforts accordingly”, he stated.

Recall that at the close of work on Friday, FMDQ data showed that Naira depreciated to N1,665.50 per US dollar from N1571.31 on Thursday.

Meanwhile, the Central Bank of Nigeria announced draft guidelines in a sweeping policy intervention for BDCs, including a ban on street trading and a fresh per capital share requirement for registration.