Naira Slide: Why CBN Gov May Be Sacked
The Central Bank Governor (CBN), Godwin Emefiele may be sacked following calls by some prominent Nigerians for him to step down over the slide of the Naira in the foreign exchange market.
Last week, the Naira plummeted to a three-and-a-half low against the US Dollar, to N300 – $1 on the parallel market.
The record slump in the value of the Naira was partly attributed to the Nigerian Central Bank’s move to curb the supply of dollars in the country.
Emefiele has come under fire over the slump of the Naira as some Nigerians blame his policies for the free fall of the currency.
Following the Naira slide, a former member of House of Representatives, Bamidele Faparusi, has called for the immediate removal of the CBN governor, The Nation reports.
Faparusi, who represented Ekiti south federal constituency 2 between 2011 and 2015, said the CBN boss should be sacked over what he described as “poor management of the country’s forex and the fluctuation of the Naira on daily basis since he (Emefiele) assumed office during Goodluck Jonathan’s administration”.
Speaking to reporters in Ado Ekiti on Monday, January 18, the former law maker blamed Emefiele for the collapse of many businesses which he hinged on Emefiele’s poor handling of the economy.
He said: “Many businesses have been crippled because of the poor handling of the economy under Mr. Emefiele. He has no reason to remain on that seat. He has been running the economy in a trial and error form. None of his policies had lasted for two weeks.”
He slammed Emefiele for not taking proactive measures to stabilize the exchange rate and forestall inflation and unpredictable currency valuation system.
Faparusi also faulted the CBN governor for not been able to manage the activities of those he described as ‘black marketers’ stalling government’s efforts at stabilizing the forex policy, thereby causing unwarranted devaluation of naira.
Experts on financial matters predict that this decline will be persistent, though some private sector operators view it as a welcome development.
According to a report from Punch newspaper, the acting president, association of bureau de change operators, Alhaji Aminu Gwadabe said: “There is cut of (dollar) supply to the market. The BDC sub-sector has been murdered. We are not coping. The naira is going to head northwards. There is no solution in sight.”
Meanwhile, the Senate on Thursday, January 14, summoned Godwin Emefiele over the continuous devaluation of the Naira.
This was raised by Ali Ndume, the Senate leader while debating over the continuous devaluation of the Naira in the red chamber.
Ndume described the slide of the Naira as “worrisome” adding that ”the purchasing power of Nigerians is gradually wearing out.”
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