What will you do about the exchange rate and its effect on the economy?

2. A fixed exchange rate system would be out of the question. First, it would not be in line with our philosophy of running an open, private sector friendly economy. Secondly, operating a successful fixed-exchange rate system would require sufficient FX reserves to defend the domestic currency at all times. But as is well known, Nigeria’s major challenge is the persistent FX illiquidity occasioned by limited foreign exchange inflows to the country. Without sufficient FX reserves, confidence in the Nigerian economy will remain low, and Naira will remain under pressure. The economy will have no firepower to support its currency. Besides, a fixed-exchange rate system is akin to running a subsidy regime! 3. On the other hand, given Nigeria’s underlying economic conditions, adopting a floating exchange rate system would be an overkill. We would have encouraged the Central Bank of Nigeria to adopt a gradualist approach to FX management. A managed-floating system would have been a preferred option. In simple terms, in such a system, the Naira may fluctuate daily, but the CBN will step in to control and stabilize its value. Such control will be exercised judiciously and responsibly, especially to curve speculative activities.

ON FOREIGN EXCHANGE REFORMS I also made a commitment to reform the operation of the foreign exchange market. Specifically, there was a commitment to eliminate multiple exchange rate windows. The system only served to enrich opportunists, rent-seekers, middlemen, arbitrageurs, and fraudsters. What would I have done? A fixed exchange rate system was out of the question because it would not be in line with our philosophy of running an open, private sector friendly economy. On the other hand, given Nigeria’s underlying economic conditions, adopting a floating exchange rate system would be an overkill. We would have encouraged our Central Bank to adopt a gradualist approach to FX management. A managed-floating system would have been a preferred option. -AA

While the Nigerian worker pays more to transport themselves to and fro work, more to eat, more to keep their children in school, the administration is signing off on an $11 billion contract that bypassed every safeguard of transparency and accountability that should protect the public purse. Currency Mismanagement and Economic Pain. This administration's decision to float the nation’s currency has led to the free fall of the Naira and the ensuing erosion of purchasing power is compounding the misery of the fuel subsidy removal. Again, exchange rate reform is a legitimate policy debate. But the manner in which it was done, abruptly, without a credible foreign exchange supply strategy, without the structural reforms needed to attract the inflows that would stabilise the currency, caused the Naira to enter a catastrophic free fall. The exchange rate, which was already under severe pressure, crashed to levels that had never before been seen in our national economic history.

I will support Nigerian production, reduce energy costs and restore purchasing power. I will not restore the import racket; I will restore relief. I restated this commitment when I received the Osun State leadership of the ADC in Abuja on Tuesday. I will make the naira in your pocket worth more, make daily living affordable again, and secure our people. Economic security. Physical security. A better life for every Nigerian. That is the Nigeria I intend to build. -AA

“If Boko Haram had killed these Nigerians, the government would rightly blame Boko Haram. If bandits had killed them, it would blame bandits. But this was neither Boko Haram nor a bandit attack. These citizens died under the direct watch of the Tinubu-led APC government. “The state arrested them. The state transported them. The state detained them. The state controlled the facility and assumed responsibility for their welfare. The state cannot now run away from their deaths. “There is an even deeper tragedy. With education, opportunity and modest start-up capital, these young Nigerians could have become innovators, entrepreneurs and job creators. They could have supported their families, transformed their communities and contributed meaningfully to Nigeria’s development. “Instead, the unemployment, poverty and hopelessness deepened by the Tinubu administration drove many young Nigerians into dangerous and unlawful mining simply to survive. This government denied them opportunity in life; poverty drove them into the pits; government agents arrested them there; and now their families have received corpses and excuses.

The former Vice President reiterated his commitment to policies designed to reduce the cost of living if elected president, including a targeted production subsidy for petroleum products refined in Nigeria, rather than a return to an open-ended subsidy on imported fuel. He said the policy would be structured to support domestic refining, eliminate waste and ensure that government support translates directly into lower prices for consumers. “My promise to make life affordable again is not a political slogan. It is a solemn covenant with the Nigerian people. “We will support what Nigeria produces. We will support fuel refined in Nigeria, create Nigerian jobs and insist that every naira of government support delivers a measurable benefit to the consumer. “The purpose of government is not merely to announce reforms. The purpose of government is to make life better for the people.” Atiku said Nigeria’s young people deserve classrooms, skills, jobs and opportunities that allow them to fulfil their potential rather than an economy that leaves survival increasingly dependent on dangerous and uncertain livelihoods.