Market Forces, IMF, World Bank Can’t Fix Foreign Exchange, Falana Tells Federal Govt

Lagos lawyer and Senior Advocate of Nigeria, Mr Femi Falana, has condemned the plans by the federal government, through the Central Bank of Nigeria (CBN), to allow market forces and the International Monetary Fund (IMF) as well as the World Bank to determine Nigeria’s foreign exchange rate.

 There have been controversies over President Bola Tinubu’s decision to float the nation’s currency, the naira.

 While some applauded the decision, others condemned it, pointing out that the floating of the naira as well as the removal of fuel subsidy has contributed greatly to the harsh economic situation facing Nigerians.

 While speaking at the opening of plenary at the 2023 Annual General Conference of the Nigerian Bar Association (NBA), in Abuja, Falana, said the fixing of the exchange rate is the exclusive right of the CBN.

 “Section 16 of the CBN Act gives no room for market forces to fix the exchange rate.

 “It is the CBN that shall determine…it is not for the IMF or World Bank or market forces to fix it”, he said.

 As part of efforts at turning around the harsh economic situation in the country, Falana, also urged the government to begin trading in naira with countries like the People’s Republic of China.

He argued that if the about $22 billion import from China is transacted in Naira, the high demand for dollar which put pressure on Nigeria’s economy would drop, if not stop.

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Besides the federal government, the human rights  activist called on the umbrella body of lawyers in the country to focus on certain aspects of the Tinubu administration to ensure that the government and by extension the country gets it right this time around.

Specifically, Falana charged the various branches of the NBA where the nation’s refineries are located, to begin to “monitor” development at the refineries, adding that government has committed $1.4 billion to the projects.

In a related development, he advocated for the publishing of the details of the monies shared among the federal, state and local governments on a monthly basis, recalling that when the amount shared are made public it would be very easy for citizens to follow the money and also ask state executives relevant questions.

The focus of the plenary is titled: “Getting the Economy Right: Decoding Nigeria’s Strategy for Growth, Diversification, Inclusivity and Sustainability.”