Business Hilights
Tracking Nigeria's Headline Business News Online

Expert queries CBN for giving BDCs $11bn yearly since 2011

A financial consultant and stock analyst, Dr. Ken Igboanugo has raised salient questions for the Central bank of Nigeria (CBN) to tell Nigerians the real stake and contributions of black marketers that will warrant giving them a yearly allocation of $11bn.

Explaining issues ahead of Monday’s MPC meeting expected to take drastic decision on moving the economy away from critical conditions, Igboanugo said, “The committee must address the problem of exchange rate”.

“I recall that The CBN Governor, Mr. Godwin Emefiele, said the CBN had been giving $11bn annually to BDC operators since 2011. That is $55bn in five years. We need to ask ourselves whether the BDC operators are critical stakeholders in our exchange rate management. It is not like that in other climes.

Continuing, aggrieved Igboanugo charged the 11-man Committee to look at how banks are committing infractions in the forex market and see how to impose sanctions. Steps must be taken to address the problems causing volatility in the exchange rate. In the past, some people were banned for life from the forex market.

Business Hilights recalls that the Chief Executive Officer, Financial Derivatives Limited, Mr. Bismarck Rewane, had last month said the MPC might have no other choice than to purse an expansionary monetary policy considering the state of the economy and the recent stimulus package announced by the fiscal authority.

Before now, many market followers had argued that allowing the value segmentation of currencies in the hands of BDC operators remains a cause that must be broken either now or never.