Why President Tinubu Floated the Naira – Presidency’s Perspective

In a recent interview with Arise News, the Special Adviser to the President on Information and Strategy, Bayo Onanuga, shed light on the reasons behind President Bola Tinubu’s decision to float the naira.

According to Onanuga, the Central Bank of Nigeria (CBN) was spending an estimated $1.5 billion monthly to support the naira at the official rate, which was unsustainable.

Onanuga also mentioned that some people close to the former CBN governor, Godwin Emefiele, and those close to some in the previous government, were allegedly exploiting the situation by collecting money at the official rate and selling it in the unofficial market, making a significant profit for doing nothing.

The presidential aide emphasized that the gap between the official window and the parallel market had significantly reduced with the floating of the naira, which in turn is attracting more investment into the country.

However, Onanuga acknowledged that Nigeria is currently experiencing “hyper-inflation,” with prices of goods and commodities increasing more rapidly than they should. #

He suggested that more questions and grievances should be directed towards state governments and local government councils, as they have received increased allocations but have not shown significant improvements.

The floating of the naira by President Tinubu aims to address the economic challenges in Nigeria and to stabilize the exchange rate, which is crucial for attracting more investments and promoting economic growth.