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Moghalu says Buhari’s ‘no forex for food importation’ directive to CBN will weaken economy

Moghalu
Moghalu

Former Presidential candidate of the Young Progressives Party (YPP), Kingsley Moghalu has faulted President Muhammadu Buhari’s directive to the Central Bank of Nigeria (CBN), on non-provision of foreign exchange for food importation.

In a series of tweets on his official handle, the former deputy governor of the CBN also asked Buhari to allow the apex bank to discharge its mandate independently.

Moghalu also noted that the political interference in CBN’s economic policies leads to poverty and also weakens institutions.

He wrote on Twitter; “Is @cenbank now a ministry to be “directed” by President @MBuhari ? Article 1(3) of the CBN Act 2007 states ‘In order to facilitate the achievement of its mandate under this Act…the Bank shall be an independent body in the discharge of its functions.

“The issue here isn’t whether or not CBN should allow access to forex for food imports. It is about whether such an economic policy of a central bank should be imposed by a political authority. A major reason for our poverty, instability and weak economy is weak institutions.

“Our marketplace should be regulated and guided in a rational manner that creates a level playing field. Our economy will not be saved by Ad Hoc political decisions like this, handed down by the very institutions that should be shielded from the whim and caprice of politicians.

“Nigeria’s entire economy appears to have been sub-contracted to our central bank, including industrial and trade policy. In the process the economy has fared poorly and the Bank has lost its independence. This is sad!

“@NGRPresident should leave @cenbank alone to discharge its mandate independently within the ambit of the CBN Act, and stop “directing” it. @cenbank should on its part assertive its independence (assuming it actually believes it should be independent, but the Act says so, clearly!”

Recall that while giving the directive at his hometown in Daura, when hosting APC Governors, Buhari said that his order to the CBN to starve food importation of foreign exchange stemmed from the steady improvement in agricultural production and attainment of full food security in the country.

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