- Directs CBN to work towards unified foreign exchange rate
Adedayo Akinwale in Abuja
President Bola Tinubu has declared that there is no provision for fuel in his administration.
Tinubu in his inaugural speech delivered on Monday in Abuja said there was no justification for the ever increasing fuel subsidy, saying the money would be channeled to other sectors.
“We commend the decision of the outgoing administration in phasing out the petrol subsidy regime which has increasingly favoured the rich more than the poor. Subsidy can no longer justify its ever-increasing costs in the wake of drying resources. We shall instead re-channel the funds into better investment in public infrastructure, education, health care and jobs that will materially improve the lives of millions,” he said.
On Monetary policy, he said there was need for thorough housecleaning. Tinubu said, “The Central Bank must work towards a unified exchange rate. This will direct funds away from arbitrage into meaningful investment in the plant, equipment and jobs that power the real economy.
“Interest rates need to be reduced to increase investment and consumer purchasing in ways that sustain the economy at a higher level.
“Whatever merits it had in concept, the currency swap was too harshly applied by the CBN given the number of unbanked Nigerians. The policy shall be reviewed. In the meantime, my administration will treat both currencies as legal tender.”
The president also assured the current import rate was too high and anti-business.
To this end, he said the rate would be brought down.