A chieftain of the Peoples Democratic Party (PDP) in Oyo State, Engr. Femi Babalola, in an interview with The Nigerian Tribune correspondent, argued that the true cause of the country’s challenges was not any supposed curse but rather the ineptitude of its leaders. According to him, leadership should be held accountable for the nation’s travails over the years.
When asked whether the APC-led government had been able to address some of the economic challenges, particularly the issue of the fluctuating Foreign Exchange (FOREX) rate, Babalola explained that the matter of exchange rate should be treated as a priority. He noted that, in the president’s wisdom, the justification given was that there had been persistent round-tripping in the FOREX market, something successive governments had also admitted.
Babalola questioned why, if Nigeria was indeed facing such a critical challenge with FOREX, the government could not simply summon the Managing Directors and Chief Executive Officers of the country’s various banks to a meeting.
He said the authorities should have impressed upon them the severity and damaging effect of a fluctuating exchange rate on the economy, and made it clear that if the reported cases of round-tripping did not stop within six months, those responsible would face severe punishment. Instead, he lamented, the government was punishing the entire country rather than addressing the root of the problem.
He insisted that the only viable solution to the crisis was to give utmost priority to stabilising the exchange rate. According to him, the persistent fluctuation of the naira was creating a ripple effect that was negatively impacting all sectors of the economy.
He concluded by observing that the Nigerian economy had consistently defied the law of nature, behaving in ways that undermined growth and stability despite obvious remedies being within reach.
Further talking, he said, “A situation where whatever goes up never comes down. A bag of cement, which was previously sold for between N2,000 and N3,000 before the advent of the present administration, now goes for between N11,000 and N12,000. It is hard to believe. People keep on talking about the Internally Generated Revenue in respective states.
“The question is, what is the volume of the value of the revenue being generated in comparison with the value of the currencies?”
