Moghalu, British Gov’t Support Tinubu’s Fuel Subsidy Removal, Forex Reforms

The former Deputy Governor of the Central Bank of Nigeria (CBN), Kingsley Moghalu, and the British High Commissioner to Nigeria, Richard Montgomery, have both backed the economic reforms of President Bola Tinubu.

Moghalu and Montgomery, in two separate interviews, said the fuel subsidy removal and the foreign exchange reforms are the right decisions for the Nigerian economy. 

According to Moghalu, during an interview with Arise TV on Thursday, the reforms are difficult necessary decisions that should have been taken years ago.

He said the desperate situation that the Nigerian economy has found itself called for the hard decisions to be taken and it takes a lot of courage to begin to tackle these issues now. 

“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 said. 

According to Moghalu, a significant blow has hit corrupt activities in the oil industry and the forex markets since the removal of fuel subsidy and devaluation of the naira, “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,” Moghalu said. 

The British High Commissioner to Nigeria, Montgomery, who visited Vice President Kashim Shettima at the State House, Abuja, on Wednesday, said the economic decisions Tinubu’s government is taking are really important. 

He said a much better investment environment has been created following the removal of subsidy and the exchange rate reform.

“I think we already have a good economic dialogue, but I think there is a great potential to do more.  As I discussed with His Excellency, the big economic decisions being taken by this government are really important and are being noticed around the world: the removal of subsidy; the exchange rate reform, all of that create a much better investment environment. 

“I was in London last week; I was briefing my ministers, but I was also talking to British business in finance, banking and investment sectors.  They are all responding very positively to these first decisions.   

“We know that there are tough times that are going on at the moment, inflation and unemployment.  The Vice President and I also touched on some of the measures that might be possible to cushion the blow of some of these economic pressures. 

“But I think the big issue is that these reforms help put Nigeria on a higher growth path; they will attract more investments and the United Kingdom and the city of London see Nigeria as a big opportunity going forward.  I will be doing my part to try to boost those, enhance trade and investment,” Montgomery said.