THE CBN would be failing in its statutory roles if it stands on the sides watching as the nation’s external reserves are being haemorrhaged by sources that have no real impact on the lives of average Nigerians.  Spending $8.6 billion annually to fund the operations of the BDCs like the CBN had done in years past is no longer sustainable.

Jettisoning it as the CBN did on Monday would not only save the nation huge sums but would also compel actors who used their operation of the BDCs to milk the nation of scarce foreign reserves to look elsewhere for their parasitic economic endeavours. It would enable us know the genuine players who understand the business and are willing to support the CBN in ensuring exchange rate stability.  

Mr. Godwin Emefiele, the CBN governor must be commended for his courage and foresight. It takes a bold thinker to cut off a drain pipe such as the CBN’s funding to the BDCs. Mr. Emefiele has shown that he indeed is a man who understands the demands of the time and is not afraid to make tough decision no matter how powerful interests that are to be affected by the decision are. It takes a man with courage to reverse the absurdity of Nigeria’s CBN being the only reserve bank on earth that supplies foreign currencies to her domestic BDC operators.

It is expected that this new policy direction would send a clear signal to all other actors who are only in the business of seeking to circumvent and sabotage the system that their days are numbered. We are in dire times and a lot of shaking up would have to be done to keep the ship of the nation’s economy moving. Commendations also must go to President Muhammadu Buhari for his support to the CBN leadership. As a commander in chief who knows what role strong institutions can play in achieving widespread stability in the polity, President Buhari has made a point in consistently respecting the autonomy of the apex bank and has publicly supported the Bank’s initiatives aimed at steering the economy away from the path of danger. 

Nigerians have a duty to support President Buhari and the CBN helmsman in their avowed commitment to build a strong virile economy that supports the genuine business aspirations of many Nigerian entrepreneurs. Like the CBN’s disclosure on the BDCs have shown, rent-seeking businessmen and women are effortlessly bleeding the economy dry through serial abuses. Concerted effort must be put in place to cut them off and open up the space for real players who are willing to take advantage of the many favourable policies of the CBN to spur the economy and maintain stable, long-term growth, fuelled by entrepreneurship and full exploitation of the immense natural and human resources that Providence has bestowed on Nigeria. 

• Concluded

• Chieshe is an Abuja based policy analyst. e-mail: [email protected]