***Knocks FG, NLC on call for CNG-powered vehicles
By Harry Awurumibe, Editor, Abuja Bureau
Against the backdrop of the nationwide outcry against economic hardship in Nigeria, foremost Economist Paul Alaje has said that President Bola Ahmed Tinubu has the sacred duty to ensure that Nigeria works for every Nigerian.
This is even as he has faulted the federal government and Nigeria Labour Congress (NLC) much-vaunted switch from petrol-driven vehicles to Compressed Natural Gas (CNG)- powered vehicles, saying that CNG vehicles have been banned in most countries of the world especially in Europe.
Speaking on AIT breakfast programme Kakaaki monitored in Abuja on Wednesday, Alaje attributed the current economic hardship in Nigeria to bad economic policies of the federal government especially the fuel subsidy removal.
According to him subsidy removal was ill-advised and its effect is what Nigerians are feeling now as it has triggered inflation, pointing out that before subsidy is removed, all the refineries in the country should have been functional to ensure that petroleum products including the much-needed Premium Motor Spirits (PMS) are available and affordable for Nigerians.
The renowned Economist lamented the high cost of living in Nigeria which he said has made lives of citizens miserable and therefore called on President Tinubu to come out with the solution on how to stem the tide of economic hardship which has triggered protests in some states in the country including Niger and Kano.
Alaje however insists that inflation in Nigeria will linger for a long time because of the huge amount of money the apex bank, Central Bank of Nigeria (CBN) printed and put in circulation in the recent past just as he said the devaluation of Naira has not solved the nation’s problems.
Said he: “Unfortunately, inflation will linger for a long time because of the huge amount of money the CBN printed in the recent past. In fact, price stability and exchange stability are two different things. Demand pressure is real.
“If anyone believes that continued Devaluation of Naira will solve the economic crisis, it is capital lie.
“The only way to come out of the woods are improve productivity and increase export to earn the much-needed Forex which will now bring stabilisation in the exchange rate”.
Addressing the pressure on the Foreign Exchange (FX), Alaje calls for external support in terms of external earnings from Nigeria’s export products like the crude oil and agricultural products, saying that anything order than embarking on production will spell doom to the country. READ ALSO:
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He warned that the over dependent on foreign goods and services will continue to have negative economic impacts on the country, adding that naira will continue to be on free fall against the dollar as long as some unpatriotic Nigerians have made the dollar medium of exchange in the country.
Alaje blamed the fall of naira against the dollar on currency speculators including some state governments who receive their federal allocation from the Federal Account Allocation Committee (FAAC) is responsible for reviewing and adopting the allocation of funds to states of the federal government of Nigeria only to go to the black market currency dealers to buy up Forex and later sell when the exchange has gone up.
“Does it shock anyone that anytime FAAC shared monthly allocation to states and federal government between two to three days naira will get weaker against the dollar in Forex market. As long as this practice continues, naira will not gain any strength against the dollar”, Alaje posited.
The Economist also said naira should be a store of value and not medium of exchange, pointing out that “If store of value becomes doubtful then speculation will set in”.
He also questioned the Tinubu administration’s decision to unify the exchange rate, arguing that “If you think that you are going to unify the FX exchange, you don’t devalue”.
