Chief Olisa Agbakoba, human rights activist and former President of the Nigeria Bar Association (NBA), has praised the Federal Government for reportedly floating the naira currency after so many years of sticking with a hard peg that hit hard on investors and drained dollars from the economy.

It has been reported that Nigeria has officially floated its naira currency whereby a market rate based on a willing buyer and a willing seller is currently being quoted by banks who sent out emails to some customers confirming the change Wednesday morning.

The news caused some apprehensions among Nigerians given that it could lead to higher exchange rates from banks, even as Daily Independent gathered that the exchange rate could go as high as between N800 and N1000 by the end of today, according to some bankers, who said the CBN’s next move should be to prioritize supply of dollars to support the naira float.

However, speaking to our correspondent, the rights activist and lawyer said this is one piece of good news that would be classified as a good one for him in the last sixty years.

He said much as it could engender higher exchange rate, it was good since the foreign exchange market has become another source of corruption among the few players.

He said: “This is one piece of news that I will say is the best I have heard in the last sixty years. I am hearing it from you and if it is true, I have to commend Tinubu on this. He has shown that he is in charge.

“With these two policies of fuel subsidy and forex market, Tinubu has done very well in the short period he has been the president.

“What is forex market, it is artificial control of the foreign exchange whereby few people manipulate the system to the detriment of the poor and the majority.


“What is fuel subsidy? It is the manipulation of the petroleum subsidy regime whereby few people enrich themselves corruptly in the name of importation of fuel. There is no way Nigerians are consuming 60 million liters of petrol daily but because they are corruptly enriching themselves, they sell what they quoted in other countries.

“But firstly I want the government to fully explain to Nigerians the corruption in the foreign exchange market and the same in the fuel subsidy regime so that they would know why the two have to go and why they should ensure the pain for a while,” he said.

Meanwhile, reminded that the naira float could cause some hardship in the country, he said it was very imperative despite the initial pain.

“Are you saying that we cannot for example bear the pain of say five to six months instead of few people corruptly feeding fat on our commonwealth? I think this is the best news I have heard in the last 60 years,” he said.

How does this policies benefit the common man on the street?. The only thing I have noticed so far is increase in the price of commodity

Nice one

Kenneth4u205:
How does this policies benefit the common man on the street?. The only thing I have noticed so far is increase in the price of commodity

Exactly that's my point... Even if we assume we float naira and price crashes to 650 a dollar petrol would sale for 800 to 850 minimum

The only advantage is federal and state revenue would increase at least on naira value
And the fact that our reserves would not be stressed too much

But fuel pump price would sky rocket by 50% .. Diesel same, gas same, kerosene same
Another casualty would be import duties for cars

mrvitalis:

Exactly that's my point... Even if we assume we float naira and price crashes to 650 a dollar petrol would sale for 800 to 850 minimum

The only advantage is federal and state revenue would increase at least on naira value
And the fact that our reserves would not be stressed too much

But fuel pump price would sky rocket by 50% .. Diesel same, gas same, kerosene same
Another casualty would be import duties for cars

If our current start doing well against those foreign currencies, how does that translate to upward spiral in the price of Petro, diesel, gas etc. What I think is that it will add more value to the naira as local production of good is maintained . I don't know if I am making any sense

Let's wait for at least 6 months before we celebrate this policy..

Most Nigerians are just too dumb and cheap.

LikeAking:
Let's wait for at least 6 months before we celebrate this policy..

Most Nigerians are just too dumb and cheap.

Why are you advertising yourself? Chillax

Kenneth4u205:
How does this policies benefit the common man on the street?. The only thing I have noticed so far is increase in the price of commodity

Only the literate will understand

Good

Benwallt:



If our current start doing well against those foreign currencies, how does that translate to upward spiral in the price of Petro, diesel, gas etc. What I think is that it will add more value to the naira as local production of good is maintained . I don't know if I am making any sense

To import petrol and make profit you would have to sale at 1.2 to 1.3 dollars
Importers get dollar now at 460
460*1.2 is around 550 we buy fuel

Floating the naira now means they would get dollar at the single rate day 650
650*1.2 that's 780 ..

If crude reaches $100 expect to pay over 1000 per litre