Tinubu promises unified forex regime, agricultural hubs in states

PRESIDENT Bola Ahmed Tinubu has promised a unified foreign exchange rate regime as he disclosed plans to have agricultural hubs cited across states in the federation.

Tinubu made the declaration on May 29, 2023, after his inauguration at Eagle Square in Abuja.

He implied he would make the Central Bank of Nigeria (CBN) work towards a unified exchange rate.


READ ALSO:
Tinubu vows to create one million jobs, grow GDP by 6% annually

Tinubu to Nigerians: We’ll govern, not rule over you

I will treat Obi, Atiku as important compatriots — Tinubu

Court dismisses suit against Tinubu’s inauguration, fines plaintiffs N15m 


Read Also:

The unified exchange rate, he said, would direct funds away from arbitrage into meaningful investments in plants, equipment and jobs that power the real economy.

On why he seeks reduced interest rates, the President explained, “It must be reduced to increase investment and consumer purchasing in ways that will sustain the economy at the highest level.”

Under Tinubu’s immediate predecessor, Muhammadu Buhari, the World Bank and several other multilateral lending agencies had warned the CBN of the negative implications of multiple exchange rates to the economy, and how the situation was dissuading investors.

The ICIR has continuously reported how high interest rates by commercial banks were reducing opportunities for businesses through rising cost of funds.

The CBN’s monetary policy rate (which determines the rate at which commercial banks lend to borrowers) is 18.5 per cent. The lenders hike the rate up to percentages as high as 30 in giving to borrowers after adding administration and other costs.

“High interest rate crowds out funds for the real sector and reduces opportunities for job creation, which is not good for the economy,” an economist and former director-general of the Lagos Chamber of Commerce and Industry, Muda Yusuf, told The ICIR.




     

     

    On his agricultural plan, the President assured that rural incomes shall be secured by commodity exchange boards guaranteeing minimal prices for certain groups and animal products.

    He also revealed that a nationwide programme for storage and other facilities to reduce spoilage and waste would be undertaken.

    “Agricultural hubs will be created throughout the nation to increase production and engage in value-added processing,

    He further said that the livestock sector would be introduced to best modern practices and steps taken to minimise the perennial conflicts over land and water resources.

    Advertisements
    Advert Bracken

    Read Also:

    Harrison Edeh is a journalist with the International Centre for Investigative Reporting, always determined to drive advocacy for good governance through holding public officials and businesses accountable.

    Join the ICIR WhatsApp channel for in-depth reports on the economy, politics and governance, and investigative reports.

    Support the ICIR

    We invite you to support us to continue the work we do.

    Your support will strengthen journalism in Nigeria and help sustain our democracy.

    If you or someone you know has a lead, tip or personal experience about this report, our WhatsApp line is open and confidential for a conversation

    LEAVE A REPLY

    Please enter your comment!
    Please enter your name here


    Support the ICIR

    We need your support to produce excellent journalism at all times.

    - Advertisement

    Recent

    - Advertisement