In a series of tweets, former Minister of Education, Oby Ezekwesili, expressed her displeasure at the recent Forex Policy Subsidy and warned that it will be just as detrimental in the long run as the fuel subsidy had been.
Ms. Ezekwesili’s call out is in reaction to the recent effort by the Central Bank of Nigeria to subsidize forex by announcing a new exchange rate.
She advised that it was better to try to correct the problem with our currency via sound monetary policy rather than try to bring it down by force. Efforts to do this, she said will only give the illusion that the Naira is gaining value while in reality, it is not. She also warned that innocent citizens, and not those making these policies, will suffer the adverse effect of the Forex Policy Subsidy.
One of her tweets read: “Every Currency that goes up can come down through SOUND monetary policy. But, every Currency that comes down by FORCE will go up. #PP301.”
“Once upon a time, it came from Oil “Subsidy”. Today it comes from FX policy of “Strengthen ₦” If it looks like duck & quacks like a duck…” another tweet read.