Central Bank Governor Oluyemi Cardoso disclosed that Nigerians spent over $40 billion on accessing education and healthcare abroad between 2010 and 2020, which has contributed to the pressure on the country’s currency, the naira. Speaking at a session before the House of Representatives, Cardoso highlighted the significant impact of Nigerian students studying abroad, estimated to be over 100,000, and the expenses incurred in seeking medical treatment outside the country.
Cardoso emphasized that the amount spent on foreign education and healthcare exceeds Nigeria’s current foreign exchange reserves. He noted that addressing a substantial portion of this demand could have strengthened the naira considerably. He also highlighted that the government spent $58.7 billion on Personal Travel Allowances and disbursed an additional $9.01 billion for personal foreign travel between January and September 2019.
Responding to questions from lawmakers, Cardoso clarified that the decision to relocate a CBN department to Lagos was an operational move for efficiency, not a political decision. He also addressed concerns about the removal of 43 items from the FX ban, stating that it is a fiscal matter that falls under the jurisdiction of the minister of finance.
President Bola Tinubu’s reforms in the foreign exchange system and the petroleum downstream sector, aimed at curbing corruption and unifying the exchange rate, have inadvertently led to inflationary pressure. Cardoso expressed optimism that these reforms will attract investors, which could help stabilize the FX market. However, the depreciation of the naira by approximately 68% since Tinubu took office, with a 50% depreciation in 2023 alone, has contributed to the rising cost of living, causing hardship for Nigerians.
Premium Times