Africa (commonwealth union ) _ President Bola Tinubu has wasted no time in taking action since assuming office, starting with his inaugural speech where he reaffirmed his campaign promises for the 2023 general elections. One of the key issues he has addressed is the removal of fuel subsidies in Nigeria’s economy, which has been a topic of concern for previous governments but remained unresolved due to market dynamics and protests from citizens.
Tinubu’s administration is determined to eliminate the fuel subsidy and ensure it does not resurface in Nigeria’s economic landscape. With this focus, it is likely that the Bureau de Change industry, which has a limited number of beneficiaries and negatively affects the country’s exchange rate, could be the next target for the government.
Bureau de Change operators are influential individuals who engage in dollar trading on the black market. They acquire large quantities of dollars from the Central Bank of Nigeria using their connections and then resell them at higher prices. As of May 31, the official exchange rate is 461.5 naira to $1, while on the black market, it reaches around 745 naira.
Vice President Kashim Shettima, speaking on the first day of the new government, acknowledged that they anticipated resistance to the new policy but emphasized their determination to break the status quo. Shettima emphasized the need to eliminate fuel subsidies and put an end to multiple exchange rates, warning that if Nigeria did not address the subsidy issue, it would adversely affect the country.
Whether Tinubu will succeed in his efforts to remove the subsidy and address the Bureau de Change system remains uncertain and will depend on time. The Bureau de Change system is deeply ingrained in the Nigerian economy, and dismantling it would involve significant challenges, including potential job losses for those involved.
It is worth noting that former Minister of State for Labour and Employment, Festus Keyamo, has refuted media reports claiming that President Tinubu has already removed the fuel subsidy. Keyamo clarified that Tinubu has not eliminated the subsidy but rather indicated that the 2023 budget does not allocate funds for it beyond June 2023.
