Buhari Paid $1.5bn Monthly For Subsidy & Defend Naira
The last administration of Muhammadu Buhari paid a whooping sum of $1.5bn (one billion and five hundred million dollars) per month on fuel subsidy and to defend naira against the United States dollar, the presidency said.
The reaction and revelation of the presidency is coming as a result of the article of the New York Times, which put the blame of economic woes on the current administration of President Bola Tinubu.
Mr. Bayo Onanuga, the media and strategy assistant to Tinubu tackled the Times and said that the NYT did what other foreign media do to African countries.
According to him, the past government was spending that huge amount of money every month through the Central Bank of Nigeria (CBN) to defend the currency. The government dis that to keep the exchange rate low.
“Like oil, the exchange rate was also being subsidized by the government, with an estimated $1.5 billion spent monthly by the CBN to ‘defend’ the currency against the unquenchable demand for the dollar by the country’s import-dependent economy. By keeping the rate low, arbitrage grew as a gulf existed between the official rate and the rate being used by over 5000 Bureau DE Change (BDCs) that were previously licensed by the Central Bank.”
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