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Why Federal Govt floated the Naira – CBN Governor, Cardoso gives reasons

The Governor, Central Bank of Nigeria, CBN, Mr Olayemi Cardoso, has said that the apex bank under him took the bold step of floating the Naira in the foreign exchange market in order to bring the official exchange rate closer to market reality.

About three CBN Governors before Cardoso had toyed with the floatation option when they faced constant excess demand for foreign exchange and exchange rate pressures. They all abandoned the option due to fear of massive depreciation of the value and the contagion effect across the macroeconomic space.

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But Cardoso, speaking for the first time on his journey on the saddle so far and focusing on the turbulence in the financial market following his assumption of office a year ago, explained that the floatation policy was meant to address the disparity between the official and parallel rates which encouraged arbitrage and speculation, eroding trust in the market.

While addressing members of the Harvard Club of Nigeria in Lagos at the weekend on the topic: “Leadership in Challenging Times: Restoring Credibility, Building Trust, and Containing Inflation”, Cardoso recalled that upon assumption of duty, he understood that the credibility of the Central Bank of Nigeria (CBN) had to be the bedrock of the actions he and his team took.

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He stated: “Without credibility, no policy, however well-intentioned, can succeed. Floating the naira, a decision met with considerable public criticism, was necessary to bring the official exchange rate closer to market reality. ‘‘The disparity between the official and parallel rates had encouraged arbitrage and speculation, eroding trust in the market.

“Credibility is earned by consistency. The decision to close this gap, while painful in the short term, sent a message to market participants that the CBN was committed to transparency and sound monetary policy,” he added, noting that speculative trading had been reduced, and stability was gradually returning to the currency markets.

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While noting that containing inflation remained the Bank’s core mission, he acknowledged that the CBN was yet to meet its target.

However, he stressed that recent declines reported by the National Bureau of Statistics (NBS) in July and August 2024 showed that the CBN was moving in the right direction.

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He explained further: “Our decision to raise the Monetary Policy Rate (MPR) to 27.25% was a bold move. Higher interest rates, while painful for borrowers, are necessary to curb excess money in circulation and control inflation. Leadership is about making hard choices to secure long-term stability over short-term comfort in moments like these.’’

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Police operatives rescue 13 victims kidnapped along Benin-Lagos expressway

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Police operatives rescue 13 victims kidnapped along Benin-Lagos expressway

The police command in Edo has rescued all 13 passengers abducted by suspected kidnappers along the Benin-Lagos expressway, following a coordinated operation involving aerial surveillance, drones and bush-combing tactics.

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The command’s spokesperson, ASP Eno Ikoedem, disclosed this in a statement issued on Saturday in Benin City.

Ikoedem said the passengers were abducted on May 9 at Ogua Community along the Benin-Lagos road when armed hoodlums attacked a commercial bus belonging to Young Shall Grow Motors travelling from Akwa Ibom to Lagos.

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According to her, a female passenger sustained gunshot injuries during the attack.

Ikoedem stated that the command immediately launched coordinated rescue and bush-combing operations after the incident.

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“Following the incident, the command immediately launched coordinated rescue and bush combing operations, rescuing five passengers comprising two adults and three children, and has remained on the trail of the kidnappers,” she said.

The police spokesperson further disclosed that operatives, through intelligence-driven policing and technological support, engaged the kidnappers in a gun duel on May 10 and rescued two additional victims.

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“Through the deployment of drones, aerial surveillance, intelligence-driven policing and sustained technological support, operatives of the command engaged the kidnappers in a gun duel and successfully rescued two additional passengers,” she said.

Ikoedem said the remaining six abducted passengers had now been rescued unhurt.

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She quoted the state Commissioner of Police, Monday Agbonika, as commending the courage and resilience of the operatives involved in the operation.

The commissioner, according to her, assured residents that the command remained committed to apprehending the perpetrators.

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“The command is not relenting in its efforts as intensive bush combing operations are ongoing to apprehend the perpetrators of this crime,” the commissioner said. (NAN)

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Ganduje’s Son dumps APC, joins Kwankwaso in NDC, to contest House of Reps in Kano

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AbdulAziz Abdullahi Umar Ganduje, son of former National Chairman of the All Progressives Congress, Abdullahi Umar Ganduje, has entered the race for the House of Representatives seat representing Dawakin Tofa/Tofa/Rimin Gado Federal Constituency in Kano State.

The development is generating fresh political attention in the state amid reports that AbdulAziz has distanced himself politically from his father’s camp and aligned with former Kano State governor, Rabiu Musa Kwankwaso.

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His decision to contest under Kwankwaso’s political structure is being seen by observers as a major shift in Kano politics, considering the long-standing rivalry between the APC and the Kwankwasiyya movement.

AbdulAziz reportedly purchased the nomination form for the federal constituency seat ahead of the forthcoming elections.

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A viral video circulating online also showed him explaining his political mission to Kwankwaso, further fueling speculations about his full integration into the former governor’s political camp.

With the latest move, political analysts believe the contest for the Dawakin Tofa/Tofa/Rimin Gado seat could emerge as one of the fiercest National Assembly battles in Kano State.

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AbdulAziz is expected to square off against the APC candidate in a contest already attracting widespread political interest.

The development also comes as the New Democratic Coalition, recently joined by Kwankwaso after his reported defection from the African Democratic Congress, continues to expand its influence across Kano State ahead of the elections.

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You can’t stay within our party and wish us bad luck, APC warns ex-Gov Fayemi over utterances

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You can’t stay within our party and wish us bad luck, APC warns ex-Gov Fayemi over utterances

The National Secretary of the All Progressives Congress (APC), Ajibola Basiru, has warned former Ekiti State governor, Kayode Fayemi, against making comments capable of undermining the ruling party, saying the APC may sanction him for alleged anti-party activities.

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Basiru’s reaction followed recent remarks by Fayemi during an interview on State Affairs with Edmund Obilo, where the former governor criticised the direction of the APC and warned of possible internal crisis within the party.

In the interview, Fayemi said the ruling party had departed from the ideals upon which it was founded and was gradually losing its ideological focus and internal culture of debate.

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“This is not where the party has come from. We have lost our bearing and the vision of the founding fathers of this party,” Fayemi stated.

He also expressed concern over what he described as the growing culture of political endorsements and consensus arrangements within the APC, warning that such developments could create discontent among party members.

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“It would be unfortunate if everybody is running to Aso Rock because they want something,” he said.

“Those who don’t get consensus won’t be happy… and you’re waiting for an implosion.”

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Responding to the comments, Basiru dismissed Fayemi’s concerns and suggested the former governor should leave the APC if he no longer believes in the party.

“We urge him that since he so much despises the party and wishes the party an implosion, he should go to where whatever he thinks his best ideas can be ventilated,” Basiru told Punch.

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“We wish him the best of luck, but he should not stay within our party and be wishing us bad luck. He should go to another political party if he no longer believes in the party he represents.”

The APC national secretary further warned that the party would not ignore statements or actions considered harmful to its political interests.

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“Let him go and join another party. If he does not join another party, the APC will not hesitate to invoke disciplinary actions to sanction him for anti-party activities,” he said.

Basiru also linked Fayemi’s remarks to ongoing political realignments ahead of the 2027 general elections, alleging that the former governor had been associating with opposition figures.

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“His statement only further confirmed what Mr Rotimi Amaechi said, that he was one of those who agreed to form opposition against the APC,” Basiru said.

“We also have it on good authority that he and some of his followers have been hobnobbing with opposition elements, particularly ahead of the Ekiti governorship election.”

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He added that Fayemi’s criticisms were coming at a sensitive period when the APC was preparing for the Ekiti governorship election and conducting party primaries.

“Even at this time that the party is conducting its primaries and making preparations for the all-important Ekiti governorship election, it only shows a design to demarket the party ahead of that election,” Basiru stated.

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