Fuel subsidy removal, forex reforms will affect corruption in Nigeria, Moghalu defends Tinubu

The former Deputy Governor of the Central Bank of Nigeria (CBN), Kingsley Moghalu, has said the foreign exchange (Forex) reforms and fuel subsidy removal by President Bola Tinubu are a significant blow to corruption in both sectors.

Ripples Nigeria reports that the oil sector was completely deregulated by President Tinubu the first week he took over the office by removing subsidy on fuel.

He also reformed the monetary policies of the Central Bank of Nigeria (CBN) by devaluing the naira in a bid to unify the multiple exchange rates

These policies, according to Moghalu, will result in transparency in the oil and foreign exchange markets which have been enmeshed in corruption due to the government subsidising both sectors.

During an interview with Arise TV on Thursday, Moghalu said the two reforms are difficult but necessary decisions that must be taken but have been neglected by previous administrations.

“I think it’s important for us to understand, these are very difficult necessary decisions that should have been taken years ago, starting with the petrol subsidy, to the forex subsidy.

“But they were not taken. And so, it requires a lot of courage to begin to tackle these issues now. Of course, that courage was also driven by a desperate situation that the Nigerian economy has found itself.

“So. it’s bound to be difficult, it’s bound to be rocky for a while, but I believe that the reforms are moving in the right direction,” Moghalu noted.

READ ALSO:Why Nigeria is weak, fragile — Moghalu

He said the goal of the reforms by President Tinubu is to ensure transparency and also remove corruption, “And these two measures, I can say for a fact, will strike a very significant blow at corruption in Nigeria, that we saw in the fuel subsidy, that we have seen in the forex subsidy.

“So, again, that is also an advantage – the transparency – but it comes with a lot of discomfort for the masses.

“If you look at where we were before these reforms, what would you rather have, everybody going to the black market, or would you rather have a system that is open,” he added.

The former CBN top director stated further that the government shouldn’t be carried away by the positive response among investors in the capital market, urging President Tinubu to also use the same determination applied in implementing the policies for creating measures needed to cushion the impact of the policies on Nigerians.

Speaking during the interview, the former Presidential aspirant said: “But I want to put a caveat. It’s important that we are not carried away by the joy of foreign investors or the market, that’s important for the economy.

“But at the end of the day, the economy is meant to serve the people. And the reality, the people of Nigeria today, are suffering because the cost of living has risen far beyond their means.

“So, the government can not move fast enough, for example, on the matter of a new minimum wage, on the matter of what to do, is there a way to subsidies transportation.

“Things like these should be addressed with immediate alacrity. They should be addressed with the same determination that we have seen in terms of the reforms.

“So, the human phase of the reforms needs to be addressed and addressed quickly. But otherwise, I believe the reforms are moving in the right direction and there are structural bottlenecks that must be opened.”

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