How Tinubu Goofed With Fuel, Forex Subsidies Removal

Former presidential candidate, Kingsley Moghalu, criticized President Bola Tinubu’s handling of the removal of petrol and forex subsidies, attributing it to causing economic hardship in the nation.

Speaking at the ‘Leadership Newspaper Group 2024 Conference and Awards’ in Abuja, Moghalu, a former Deputy Governor of the Central Bank of Nigeria (CBN), expressed concerns about the government’s lack of preparation for the impact of these policies on citizens.

He said, “Nigerians should first have been educated on the economics of why these subsidies had to go, and on what steps the government was taking to mitigate the anticipated impact; that is, with a subsidized mass transportation system across the country.”

Moghalu acknowledged the necessity of recent economic reforms but criticized their execution, particularly regarding the removal of subsidies. He emphasized the importance of proper communication and consultation before implementing such significant policy changes.

He added, “The forex reforms at the central bank should have benefited from prior, in-depth consultations with institutional investors who are the movers of global capital.”

Moghalu further highlighted what he perceived as mistakes in the exchange rate unification and the decision to “float” the naira, suggesting that they exacerbated the depreciation of the currency.

He concluded by asserting that these policy decisions lacked adequate monetary tightening measures to stabilize the economy.