Hard knocks for Godwin Emefiele over naira slump

The continuous weakening of Nigeria’s legal tender — Naira — in both parallel and official markets, in the past weeks, has put the Central Bank (CBN) Governor, Godwin Emefiele, under the attention and harsh scrutiny of the public.

Recall Emefiele was once in the eye of the storm a few months back over purported plans to contest for the office of president under the auspices of the All Progressives Congress (APC) in 2023.

When Emefiele assumed duty as the head of the country’s apex financial institution in June 2014, many Nigerians expected clear-sighted efforts that will define the country’s economic landscape.

The continuous crash of the naira, however, portends really bad news for Nigeria on his watch, not only for inflationary pressures on the economy but for businesses, especially importers. The depreciation of the local currency has negatively affected businesses — most especially importers.

The naira has been on a free fall in recent weeks, depreciating to N430 per dollar at the official market, known as the Investors and Exporters forex window, and N710/$ at the parallel market popularly called the black market.

Nigerians lamented how the country’s naira has continuously weakened against the U.S. dollar.

Many business owners complain about how they’ve been unable to access the foreign exchange from commercial banks, which can only satisfy customers’ requests based on allocations from the apex bank.

Owing to the increased public outcry, the Senate during the week resolved to invite Emefiele. He was asked to appear before the Senate in plenary and address the lawmakers behind closed doors.

It also mandated the Senate Committee on Banking, Insurance, and Other Financial Institutions to assess the impact of CBN intervention funds meant to support critical sectors of the economy.

The resolutions were reached by lawmakers after the upper chamber considered a motion sponsored by Senator Olubunmi Adetunmbi (APC – Ekiti North).

The motion was entitled, “State of CBN Intervention Funds and Free Fall Of Naira.”

Coming under orders 41 and 51 of the Senate Standing Order, as amended, Adetunmbi bemoaned Nigeria’s economic reality amid an urgent call for “extraordinary measures.”

He noted that the CBN, through its numerous multi-sectoral intervention funds, had provided special funds to support critical sectors of the economy.

Adetunmbi explained that in view of such interventions, it had become necessary to assess the state of implementation and effectiveness of the funds deployed for the purpose.

The lawmaker recalled that the CBN, in 2021, placed an indefinite halt on forex bidding by BDC operators and importers over allegations of abuse and mismanagement.