You Will Not Escape From God’s Wrath – Hungry Nigerians Tell Buhari

(POST NIGERIA) - A cross section of Nigerians have condemned President Muhammadu Buhari, for selling forex exchange to Hajj pilgrims at a subsidized rate of N197 to the dollar.

Many have maintained that it was not reasonable for the Federal Government to subsidize dollars for pilgrims, when manufacturers, students and businesses, were getting it at an official rate of N310, and for as high as N400 at the black market.

The Senior Special Assistant on Media and Publicity to the President, Garba Shehu, on Friday, August 5, defended the Federal Government’s action on his social media pages.

He said, that the N197 exchange rate was approved by the President around May, and that Christian pilgrims also benefited from a similar gesture in December 2015.

He said, “The exchange rate of N197 to a dollar was approved by the President about three months ago, much earlier than when the new forex regime came into being’’.

An angry Facebook user, Desmond Ositadinma, replied the President’s Assistant, saying,

“Please tell President Buhari, four years is not eternity, The poor masses will vote again. Jerusalem or Mecca will not come for his rescue. We must live to see as events unfolds.”
Another, Facebook user, Eddy Ose pondered,

“Why approve forex subsidy for Christian and Muslim pilgrims, but not for students and importers? What’s happening? Is religion not a private affair?”

Larry Oba, said that if the President could openly tell parents of those studying abroad to look for dollars to pay school fees, “What’s so peculiar about Christians and Muslims going on pilgrimage? Is the pilgrimage so important to the economy? Why has the President been this disappointing? I supported this government, hoping to see common sense, but what did I get? Cluelessness, arrogance and awful incompetence”.

Isaac Anthony, described the development as a “national fraud,” asking, “Why can’t importers get the same forex exchange rate from the CBN?”

Meanwhile, several Financial Analysts have also faulted the President’s directive.

Some Analysts, noted that it was wrong to have a special exchange rate for pilgrims, regardless of the faith they profess.

Head, Banking and Finance Department, Nasarawa State University, Uche Uwaleke, an Associate Professor, said the directive portends negative consequences for the forex market, which has been battling with the issue of liquidity.

He said, “How does forex demand for the purpose of observing a religious obligation not mandated for those who lack the means qualify as a transaction that is critical to the survival of the country’s economy?”

He added, that given the attractive rate differentials between the two markets, the CBN’s directive is prone to all manner of abuses, including round-tripping.

A former Managing Director of Unity Bank PLC, and now CEO of Safmur Investments Limited, Mr. Muhammed Rislanudeen, disclosed that the directive would send a wrong message to many investors, who have been experiencing difficulties getting foreign exchange for productive purposes.

He said, “Foreign exchange needed for critical imports to support growth in the economy, and in part help lift the economy out of recession, is scarce to the extent that the black market rate went as high as N400 to a dollar.

“I don’t know how and where the CBN, as well as the banks, will secure the forex at a subsidized rate of N197 to a dollar, given the new flexible forex regime that has pushed the official exchange rate to N310 to a dollar as per CBN website.”