Peter Obi Faults Government’s Crackdown on Bureau de Change Operators

Peter Obi Highlights Misguided Approach and Calls for Economic Reforms

Former governor of Anambra state and presidential flagbearer of the Labour Party in the last Nigerian elections, Mr. Peter Obi has faulted Nigerian government’s approach to ending the dollar to naira exchange rate issue that has now led to a staggering inflation rate in the country.

In a recent series of events, government agencies have been reported to have targeted Bureaux de Change (BDCs) operators in various urban centers across the country.

This crackdown has drawn criticism from Mr Peter Obi and other political figures especially from the opposition parties.

According to  Peter Obi, the Presidential candidate of the Labour Party in the 2023 Nigerian general election, such actions are misguided and may exacerbate the existing exchange rate volatility rather than alleviate it. Obi took to his X microblog account on Sunday to express his concerns.

“BDCs, while serving as intermediaries for foreign currency exchange, are not the primary drivers of supply and demand in the forex market. They provide a platform for buyers and sellers, playing a crucial role in facilitating transactions. Similar operations can be found in developed economies worldwide”, the statement reads.

Attributing the declining value of the Naira solely to BDCs is considered by many as a misunderstanding of modern economic principles. Instead, Obi argued that structural reforms focusing on transitioning the economy from consumption to production, particularly export-oriented production, coupled with anti-corruption measures, are essential to stabilizing the currency.

As long as Nigeria remains reliant on imports and corruption persists, the depreciation of the Naira is likely to persist. Obi emphasize the need for government authorities to comprehend the intricacies of a modern economy and redirect their efforts towards comprehensive economic reforms.