The former governor of Anambra State, Peter Obi, has criticized the federal government over the recent clamps down on Bureaux de Change (BDCs) operators in the county, adding that such approach is “ill-advised”, and “wrongly directed.”
In a statement on Sunday, the former presidential candidate of the Labour Party in the general election said that such disruption and attacks on the business activities of these operators will only affect the economy.
He criticized the government for not tackling the core issues in the foreign exchange market, instead pointing fingers at Bureau De Change operators for the current foreign exchange troubles.
According to Obi, BDC operators are part of any economy of the world and they cannot be responsible for the declining value of the Naira.
- “The recent reported attacks and disruption of the business activities of Bureaux de Change (BDCs) operators in different urban centres across the country by Government Agencies, are ill-advised and wrongly directed.
- “Rather than solve the problem, the action will further escalate and worsen the exchange rate situation in the country. The BDCs are not the primary suppliers of forex nor do they create demand. They only provide a market to sellers and buyers of foreign currency.
- “They are part and parcel of every economy and can be found even in the developed economies of the world. To think that the BDCs are the cause of the declining value of the Naira is a smack on rational economic thinking,” he said
Nigeria’s FX Problem is Production
Speaking further, the LP politician said that the problem of the Naira devaluation in the FX market is the absence of production in the country.
He emphasized that the government needs to move the economy from “consumption to production”, adding that the government should fight corruption in the system.
According to Obi, possessing “excess unproductive cash” only adds to the decline of the Nigerian currency.
- “The only way to shore up the value of our currency is to move the country from consumption to production, especially export-led production, and fight corruption, which allows unproductive money to pursue the available supply of foreign currency.
- “As long as Nigeria remains an unproductive economy and corruption continues unfettered with people in possession of unproductive excess cash, the value of our currency will continue to depreciate,” he said.
What you should know
Earlier last week, Operatives of the Economic and Financial Crimes Commission raided some Bureau de Change operators nationwide over speculative activities and illegitimate racketeering of foreign currencies, particularly the Dollar.
- They were said to have arrested about 50 illegal operators.
- In addition, EFCC had raised a Special Task Force across its commands, to clamp down on individuals mutilating the Naira and dollarizing the Nigerian economy.
- The government’s rationale behind this crackdown is to address illegal currency-related activities, including foreign exchange speculation and fraudulent practices.
- However, the crackdown has also sparked controversy and criticism, with concerns raised about the potential of harming legitimate businesses in the economy.