Hold Emefiele responsible for Nigeria’s bad economy, Youth Council tells Nigerians

Mr. Godwin Emefiele

The National Youth Council of Nigeria (NYCN) has blamed the Governor of the Central Bank of Nigeria (CBN), poor economic management policies of Mr. Godwin Emefiele, for the recent free fall of the naira.

The naira in the week depreciated to an all-time low of 730 naira per US dollar in the parallel market.

NYCN Chairman Comrade Solomon Adodo pointed out statements credited to the CBN Governor alleging that the current free fall of the naira against other major currencies resulted from the NNPC not sending dollars to the foreign exchange reserve. ltd. , without highlighting the reality of the oil and non-oil factors involved, including a drop in Nigeria’s crude oil production, an increase in oil subsidies, an unsustainable dual exchange rate system, a reduction in foreign direct investment and a growing reliance on imports in many sectors of the economy as dishonest and unpatriotic.

The group slammed Emefiele for completely failing to focus on his primary price stability mandate as apex bank governor, pointing out that with inflation around 19% and an exchange rate close to 800 naira for a dollar, the CBN Governor should be held accountable for the deepening. poverty in the country as it continues to work against President Muhammadu Buhari’s goal to reduce poverty and grow the economy.

The statement reads: “We are all witnesses to the fact that between August 2020 and July 2022, the official exchange rate increased from 381 Naira to 415 Naira/$, which is only a 9% increase . However, the parallel market went from 470 naira to 710 naira over the same period, representing an increase of 51% and a record arbitrage of 71%, with the official exchange rate creating a huge incentive to back and forth, price gouging, sharp market practices and inflation.

“NYCN is therefore shocked by the Governor’s comment associating the freefall in parallel market rates with the NNPC, even though this is a purely monetary matter and outside the purview of the NNPC.

“As a group of young people, we have noted that the inability of the CBN to quickly release Treasury Single Account (TSA) Joint Venture (JV) cash call funding even when the Nigeria National Petroleum Company (NNPC) Ltd had adequate cash cover, leading to JV Partners losing confidence to restore production and reap the benefits of today’s improving oil prices.

“We have been aware that for over three months now, over $400 million in dollar denominated cash call payments, properly processed, have yet to be paid by the CBN under the leadership of Mr. Emefiele.

“The combined impact of CBN’s inability to quickly release the JV’s cash call to restore production, mounting losses from crude oil theft and production deferrals resulted in oil production losses significant crude oils of more than 600,000 barrels per day.

“We find it curious that the Supreme Governor seems to ignore the insecurity and huge oil thefts in the Niger Delta which have continued to challenge the country’s oil production and the oil and gas industry in general. Currently, there are massive losses and declarations of force majeure at the country’s major onshore production export facilities of Bonny, Brass and Forcados.

“At the current year-to-date average crude oil price of $107 per barrel, Nigeria has opportunity losses translating to more than $64 million per day and a monumental impact of approximately $2 billion. dollars per month.

“We are surprised that the Governor pretends to ignore that the rising cost of the country’s oil subsidies, as well as the rising cost of servicing the foreign debt, are all obligations affecting the economy. These affect NNPC payments to the Federation account.

“From January to June 2022, the cost of the PMS subsidy reached N2.2 trillion Naira and it is estimated that the subsidy bill for the whole year could reach N5 trillion and N6 trillion in 2023.

“Apart from the government’s decision to postpone the implementation of PMS deregulation, the subsidy profile is heavily influenced by the CBN’s foreign exchange management.

“From January to June 2022, the cost of the PMS subsidy reached N2.2 trillion Naira and it is estimated that the subsidy bill for the whole year could reach N5 trillion and N6 trillion in 2023.

“Apart from the government’s decision to postpone the implementation of PMS deregulation, the subsidy profile is heavily influenced by the CBN’s foreign exchange management.

“It should be noted, however, that NNPC has made significant gains in ramping up production, including achieving ‘first oil production’ from the Anyala – Madu fields and, more recently, the Ikike fields, which cumulatively increase national oil production by nearly 80,000 barrels per day.

“Furthermore, NNPC’s efforts to achieve additional combined production of over 100,000 barrels from fields like Obodo, Utapate, etc. have never waned despite the global setback experienced as a result of the effects of the coronavirus pandemic. COVID-19.

“History shows that Mr. Emefiele is at sea on monetary policy issues. Recall that in 2021, the Governor of the CBN blamed Aboki FX for the depreciation of the Naira. He would later blame members of the Association Bureau De Change, which led to the cessation of dollar sales to the group. At another point, he blamed the depreciation of the naira on money laundering activities, terrorist financing as well as politicians.

“Furthermore, Nigerians are bearing the brunt of the CBN Governor’s inaction as Emirates Airlines, the national carrier of the United Arab Emirates (UAE), has curtailed its flight operations to Nigeria due to the CBN’s inability to repatriate approximately $85 million in revenue.

“Was the non-repatriation of funds from Emirates also caused by the NNPC?

“The International Air Transport Association (IATA) had said Nigeria was withholding revenue of around $450 million earned by foreign airlines operating in the country. Emirates said planned cuts to its operations in Nigeria would take effect from August 15, 2022.

“And in a way befitting his erratic politics, he has currently laid all the blame on the NNPC. This is clearly a case of a bad worker blaming everyone else for his failure to deliver. For us at NYCN, Emefiele is tired and should be sacked by President Buhari.

“From all indications since his failed bid for the presidency as well as his rejection by the All Progressives Congress, a partisan Emefiele has done everything to smear the achievements of President Muhammadu Buhari and this should no longer be allowed.

“As Nigerians concerned about the future of this country and before Mr. President responds to our clarion call to send Mr. Eemefiele to pack his bags from the CBN, we advise that the CBN consider, among other options , the World Bank’s recommendation to adopt a single, sustainable, market-responsive exchange rate, improving access to forex through well-defined periodic auctions, and signaling a renewed commitment to price stability as a main objective of the apex bank.

“NYCN further expresses optimism that the transition of NNPC to a limited liability entity pursuant to the provisions of the Petroleum Industry Act (PIA), and its regulation now consistent with the provisions of the Companies Act and Related Affairs (CAMA) help resolve late payments for cash calls as the company is now TSA exempt, among other things.

“We also expect NNPC Ltd to compete favorably with its peers globally, which in turn will translate into more foreign exchange for the country as well as improved national energy security,” the group noted. .