At Vanguard Economic Discourse: Soludo, Oshiomhole clash over forex

THE long-drawn battle between the former governor of Edo State, Adams Oshiomhole, and the former governor of the Central Bank of Nigeria, CBN, Professor Charles Soludo, was rekindled at the Vanguard Economic Discourse held in Lagos yesterday

Oshiomhole, responding to Soludo’s criticisms of the current foreign exchange policy which he said was opened to abuse, round-tripping and corruption, claimed that the same scenario was applicable in Soludo’s regime at CBN.

from Left; Dr. Kayode Fayemi, Minisster of Solid Miniral Development and Prof. Charles Soludo, former Governor of Central Bank of Nigeria and Keynote Speaker, 

At the Vanguard Economic Discourse with the 

Theme;The Hard Facst to Rescue The Nigeria Economy 

held at Civic centre Victoria Island Lagos yesterday.PHOTO; Bunmi Azeez

He specifically alleged that under Soludo, two first generation banks were given privileged allocation of foreign exchange just a day before the apex bank devalued the Naira, thereby, giving the said banks opportunity to make huge and quick profits from a new exchange rate.

Oshiomhole also lampooned Soludo’s pet programme, the National Economic Empowerment and Development Strategy (NEEDS), saying that it failed.

However, in his response to the allegation, Soludo lamented what he saw as outright mischief or ignorance on the part of Oshiomhole.

He stated: “We have laid out the framework, the situation is there, millions of people are out of jobs, we can’t trivialise it with jokes and unfounded personal attacks.

“I am not going to dignify such with any response, but there is one I must respond to, and that is the point made by my good friend Adams Oshiomhole.

“I have to respond to that on a point of facts, two things, the first is that the NEEDS was for 2004 to 2007. For the record, I left office 2009, we are fond of, in this country, when you don’t have the facts you invent your own. I think we can have a debate someday about what NEEDS achieved vis-a- viz its target between 2004 and 2007. That is for another day. But I don’t want to get into that now.

“Second is when Adams made the point about exchange allocation to two banks. I think that is very specific that I need to respond to directly.

 “Adams Oshiomhole has lied, that is the first thing; I didn’t say he misquoted anything; he has lied, and I want to state that for the record. 

“At the turn of 2008 financial crisis, we had an option, we built the re serve to unprecedented level in Nigeria, and we had the liberty to defend the Naira.

 In fact, I could have left office with Naira being less than a N100 to the Dollar, because we had watched it, we built it, it hadn’t been done before, nor had it been done after we left office.

“Now when we faced the crisis we decided in the interest of the country that we must allow the exchange rate to adjust, in order to save our reserves, and in order for the economy not to go into a recession. And then we made the exchange rate stable.

 Adams Oshiomhole, may be doesn’t know the technical terms and difference between devaluation and depreciation. 

“Now on the accusation of allocation of foreign exchange, we had three times a week open biddings for forex by banks. 

Only the successful banks at each bid got forex, even if it was one bank, two, three or more and we did not change the rules when we wanted to devalue.

 Charles Soludo was not even part of the committee for it, and by the time of the bid, there were offers and counter-offers, and in the market, they determined the cut off and the successful bid.

 “Now when two banks succeeded or one bank or whatever, the governor would not know. We did not make any allocations. 

There were no direct allocations for anybody, every bid produced a different exchange rate, and different sets of successful bids and banks. 

“So Mr Oshiomhole, with due respect, I think if you don’t know what to say sir, don’t just get into this kind of personal allegation.”