Failure to stabilise naira forcing multinationals out of Nigeria — HURIWA

The Human Rights Writers Association of Nigeria (HURIWA) has blamed the mass exodus of multinational companies out of the country on the inability of the governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, to stabilise the naira.

According to HURIWA, the failure of the apex bank to stabilise the naira has resulted in escalating youth unemployment and has exacerbated the high cost of living crisis.

HURIWA warned that the deteriorating economic conditions could lead to social unrest reminiscent of the recent protests in Kenya, urging the Nigerian government to take immediate action to alleviate the suffering of its citizens.

HURIWA in a statement by its National Coordinator, Comrade Emmanuel Onwubiko, stressed the alarming rate at which multinational companies are leaving Nigeria, citing the lack of accessible foreign exchange, the depreciating value of the Naira, and a challenging business environment as primary reasons for their exit.

The association recalled that the Chartered Institute of Directors (CIoD) Nigeria had previously reported that the volatility in the exchange rate and the absence of a liquid forex market significantly hindered business operations, making it difficult for companies to repatriate profits and maintain profitability.

HURIWA stated: “The inability of the CBN to provide a stable and accessible foreign exchange market is a clear indication of the failure of monetary policy under the current governor. Multinational companies are leaving in droves, causing a ripple effect of job losses and economic stagnation.”

Expressing concern over the sharp increase in youth unemployment due to the exodus of multinational companies, HURIWA warned that the growing number of unemployed youths is becoming increasingly frustrated and disillusioned.

“The youth are the future of our nation, yet they are being forced into unemployment and poverty due to the failure of our economic policies. This is a ticking time bomb that could explode at any moment,” HURIWA warned.

The association also criticised the government for its inadequate response to the high cost of living crisis, stressing that the depreciation of the naira has also led to skyrocketing prices of essential goods, making it difficult for ordinary Nigerians to afford necessities.

HURIWA called for the lifting of restrictions on legal food imports to ease the burden on citizens and reduce the high cost of food items.

Drawing parallels to the recent protests in Kenya, HURIWA cautioned that Nigeria is on the brink of similar social unrest.

The association pointed out that millions of Nigerians have been pushed to the edge, facing extreme poverty and deprivation.

“The situation in Kenya should serve as a wake-up call to our government. Nigerians are at their breaking point, and without immediate and effective interventions, we could see widespread protests and social upheaval,” HURIWA stated.

In contrast to the economic hardships faced by ordinary Nigerians, HURIWA criticised the government for its extravagant spending.

The association highlighted the ongoing debate on the purchase of new jets for the president, the construction of a N22 billion mansion for the vice president, and the acquisition of Special Utility Vehicles (SUVs) estimated at N57.6 billion for Senators and Members of the House of Representatives.

HURIWA argued that such expenditures are crippling legislative independence and diverting funds away from critical areas that could alleviate poverty.

“The government’s spending priorities are completely out of touch with the realities faced by the average Nigerian. Tinubu should lead by example, aligning with the national mood and making the sacrifices he advocates. A new BBJ MAX 7, according to sources, costs $101 million or N150 billion. The 2024 agriculture budget is N362.9 billion.

“The government needs to allocate funds towards food production, education, health, and social infrastructure that directly benefit the populace. While millions are struggling to survive, the government is spending billions on luxuries. This is unacceptable and a gross mismanagement of public funds.

HURIWA also criticised the maintenance of the Presidential Air Fleet (PAF), which comprises 10 aircraft and is larger than most domestic airlines.

The association noted that the Federal Government earmarked N12.7 billion for the PAF in the 2023 supplementary budget, in addition to the initial N13 billion. The sum for the PAF is N20.5 billion in the 2024 budget, with approximately N73.3 billion budgeted between 2011 and 2020.

“The PAF has remained a significant drain on the public purse, with billions allocated annually for its maintenance. This is money that could be better spent on infrastructure, healthcare, education, and other essential services that directly benefit the people,” HURIWA asserted.

HURIWA urged the government to address the underlying issues contributing to the exodus of multinational companies and the economic hardships faced by Nigerians. The association called for the implementation of more flexible foreign exchange policies, investment in critical infrastructure, and the creation of a business-friendly regulatory framework.

“The government must take immediate steps to stabilise the naira, attract foreign investment, and create jobs. By addressing these issues, Nigeria can create a more attractive business environment and improve the standard of living for its citizens.”

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