Market News

BY  Folake Balogun

Yemi Kale, chief economist at KPMG Nigeria has said Nigeria’s achieving a unified exchange rate is not difficult if the country can collapse the windows created by the Central Bank of Nigeria.

President Bola Tinubu declared his government’s decision to unify the exchange rate during his inaugural speech on May 29, 2023, replacing the previous multiple exchange rate regime implemented during the previous administration by the central bank.

“Unifying the exchange rate is not difficult. What needs to be done is to collapse the windows created by the central bank and ensure the exchange rate is determined by demand and supply,” Kale said while speaking in a virtual meeting with WebTV Nigeria.

He added that all those demanding FX should buy at one price rather than have a preferential price for one aspect of the market, sector, or individual.

The former statistician general of the National Bureau of Statistics noted that the previous administration focused more on controlling demand rather than encouraging supply.

“The central bank must work towards a unified exchange rate, they should direct the fund from arbitrage to meaningful investment,” he added.

He further highlighted the urgency of putting in place strategies and policies that will minimise the impact of subsidy removal on households and businesses.

When asked why the last report on unemployment was released by the Nigeria Bureau of Statistics, Kale said in a virtual meeting with WebTV Nigeria that the issue of adequate funding was a major challenge for the bureau in the previous administration.

Kale said the bureau was not getting enough money for its function, that’s why the unemployment study was not conducted.

While speaking on the issue of increased taxation, Kale said you don’t tax the economy when it is struggling. “No country in the world taxes its citizens when they are struggling, timing is very crucial.”