By Lanre Oloyede
Following the unprecedented fall in the value of Nigeria’s currency, the Naira, National Youth Council of Nigeria, NYCN, has called for the immediate sack of the Central Bank of Nigeria, CBN, Mr. Godwin Emefiele.
The Youth Council blamed the CBN Governor’s poor economic management policies for the recent free-fall of the Naira.
Recall the Naira within the week depreciated to an all-time low of N730 to a U.S dollar at the parallel market.
According to a statement signed by the President of the NYCN, Comrade Solomon Adodo, the youths described the statements credited to the CBN Governor alleging that the current free-fall of the Naira against other major currencies was as a result of the non-remittances of dollars to the foreign reserve by the NNPC Ltd, without highlighting the reality of the causative oil and non-oil related factors including a drop in Nigeria’s crude oil production, growing petrol subsidy, an unsustainable dual exchange rate system, reduction in foreign direct investments and growing dependence on importation across many sectors of the economy as disingenuous and unpatriotic.
The group ﬂayed Emeﬁele for completely failing to concentrate on his core mandate of price stability as the apex bank’s governor, pointing out that with inﬂation at about 19 percent and the exchange rate nearing N800 to a dollar, the CBN Governor should be held responsible for deepening poverty in the country as he continues to work at cross-purposes at President Muhammadu Buhari’s objective of reducing poverty and growing the economy.
Parts of the statement read: “We are all witness to the fact that from August 2020 to July 2022, the oﬃcial exchange rate has moved from N381 to N415/$, representing only a nine percent increase. However, the parallel market has moved from N470 to N710 within the same period representing a 51 percent increase and a record 71 percent arbitrage with the oﬃcial exchange rate creating a huge incentive for round-tripping, price gouging, sharp market practices, and inﬂation.
“The NYCN is therefore shocked by the comment of the Governor associating the free-fall of the parallel market rates to NNPC, even though it is purely a monetary policy issue and outside the purview of the NNPC.
“As a youth group, we have noted that the inability of the CBN to promptly release Joint Venture (JV) cash call funding from the Treasury Single Account (TSA) even when the Nigeria National Petroleum Company (NNPC) Ltd had adequate cash cover, leading to the loss of JV Partners’ conﬁdence to restore production and reap the beneﬁts of today’s improved oil prices.
“We are in the know that for over three months now, dollar-denominated cash call payments amounting to over $400 million, properly processed, are yet to be paid by the CBN under Mr. Emeﬁele.
“The combined impact of CBN’s inability to promptly release JV cash call to restore production, the increasing losses due to crude oil theft, and production deferments has culminated in signiﬁcant crude oil output losses of over 600, 000 barrels per day.
“We ﬁnd it curious that the apex governor seems to be unaware of the insecurity and huge oil theft in the Niger Delta which have continued to challenge the country’s oil production and the oil industry and gas industry in general. At present, there are massive losses and declaration of force majeure across the country’s major onshore production export facilities of Bonny, Brass, and Forcados.