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Nigeria’s Forex Market Needs Restructuring—Tinubu’s Aide

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The Special Adviser to the President on Economic Affairs, Dr Tope Fasua, has called for a structural reform of Nigeria’s foreign exchange market.

Fasua made the call at a roundtable organised by the National Policy Advocacy Centre (NPAC) of the Abuja Chamber of Commerce and Industry (ACCI) on Tuesday in Abuja.

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The theme of the event was “Unification of Foreign Exchange and the Effect of Fuel Subsidy Removal on the Business Community’’.

“I believe we should reform the Bureau De Change (BDC) sector and make it stronger. You cannot manage over 5,000 BDCs selling money on the streets.

“If we can do the structural reforms in the BDCs sector and the banks and supervise them well, the CBN with our reserves can incentivize that sector, allowing people to get money much quicker.

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“And you have to define the illegal market and by then we will be able to find stability,” he said.

Fasua said that Nigeria spends over $45 billion annually importing refined petroleum products, milk, chemicals and fish, among others.

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He said: “I hear things like scarcity of forex. What is scarcity of forex, as if the world owes us any forex.

“The world does not owe us any forex. The forex you get is depending on the trade that you do.

“If you look at Nigeria’s import and export profile, over 20 items that we import in Nigeria are in the billions of dollar range.

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“Our biggest import, fuel and diesel take about $25 billion to $30 billion every year.

“We have things like cars, which is about four billion every year; sugar, fish, milk one billion each; wheat four billion; chemicals, three billion dollars; pharmaceuticals two billion dollars.”

Fasua listed crude oil and fertiliser as two things that Nigeria exports in the billion dollar range.

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The first is petroleum and gas, you will see a figure like $57 billion, but out of that only 30 per cent is ours, according to Nigeria Extractive Industries Transparency Initiative (NEITI).

“The international oil companies that have the technology that do production own most of that money,’’ he said.

The Director, Policy Advocacy Centre, ACCI, Mr Chidiebere Onwumere, said that foreign exchange unification held promises of increased transparency, improved access to forex and reduced market distortions.

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He, however, said that it raises questions about exchange rate stability, inflationary pressures and the cost of imports.

We must carefully consider how these factors will affect the competitiveness of our industries and the purchasing power of our citizens.

“Fuel subsidy removal, on the other hand, is expected to free up fiscal resources, reduce government spending, and potentially lead to increased investment in critical sectors.

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“Yet, it also raises concerns about the immediate impact on transportation costs, inflation, and the welfare of our citizens, especially those in vulnerable communities,’’ he said.

Mr Oscar Onyema, Managing Director, Nigerian Exchange Group (NEG) PLC, said collaborative dialogue was essential in formulating policies that balance short-term challenges with long-term benefits.

Highlighting the effects of both policies on the economy, Onyema said that immediate transition could disrupt businesses and the economy in several ways.

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Represented by Mrs Cordelia Ihedioha, Onyema said that businesses that were heavily reliant on imports may face short-term disruptions due to the sudden shift in exchange rates.

According to him, this could result in increased costs for imported raw materials, leading to potential price adjustments for end consumers.

To mitigate these disruptions, businesses may need to explore alternative sourcing strategies and adjust their pricing models,” Onyema said

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Mr Dele Alimi, Director General, Institute of Directors of Nigeria appealed to the Federal Government to take total control of the mineral sector.

He said: “The mineral sector over the years has been poorly handled by previous governments as host communities have been left impoverished by illegal mining activities.”

Alimi described the subsidy removal and unification of the foreign exchange as bold steps by the Federal Government, saying that it was a necessity for economic revival.

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He urged more emphasis should be placed on efficiency of governance than cost of governance.

Dr Chijiokr Ekechukwu, Vice President of ACCI, urged the Federal Government to fix the refineries and dvocated alternative sources of energy for cars to cushion the effect of the petrol subsidy removal.

According to him, 60 per cent of cars in the United States run on electricity, adding, “that is where we should be headed for.”

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He expressed concern that while the unification of foreign exchange rate brought checks and balances and better accountability, saying, “the high exchange has affected prices of goods and services.

“The inflation rate continues to coast upwards and there is a high cost of production, criminality, low standard of living and unemployment has risen above 33 per cent to 35 per cent.’

Mr Asishana Okauru, the Director General of the Nigerian Governors’ Forum, represented by Olarenwaju Ajibasile said the cost of governance needed to be channelled to the local sector.

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Pattronising locally made products will bost the local economy,’’ he said.

Olasupo Agbaje, General Manager Economic Regulations, Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) said that efficiency in the downstream operations was key in sustaining the petrol subsidy removal.

What we hope for and where we want to be is not just the Nigeria National Petroleum Company Limited (NNPCL) being the sole supplier.

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“We want other operators, the private sector coming in and this is one of the objectives of the Petroleum Industry Act,” Agbaje said.

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OPINION: A Voyage To Caligula’s Rome

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By Suyi Ayodele

Rome’s history offers timeless lessons for all nations to jealously guard their freedom. Consider one of its emperors, Caligula: Born Gaius Caesar Augustus Germanicus, he reigned from AD 37 to AD 41. Known as Little Boots, Caligula’s four-year reign epitomised tyranny.

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Albert Camus captured his ruthlessness in his 1938 play “Caligula”, while Stephen Dando-Collins’ 2019 book, “Caligula: The Mad Emperor of Rome”, and Kate Zusmann’s article, “Roman Emperor Caligula: The Mad Tyrant of Rome”, give vivid portraits of his excesses.

Zusmann wrote: “Caligula’s reign lasted only four years, but his cruel and unpredictable behavior earned him a reputation as one of the most notorious emperors in Roman history… He engaged in construction projects to emphasize his power and divine status. He humiliated senators by forcing them into menial tasks or public spectacles.”

Though he initially presented himself as a noble leader, he soon became Rome’s worst emperor. He wielded taxation and reckless spending as weapons of control.

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One account records: “Caligula squandered 2.7 billion sesterces in his first year and addressed the deficit by confiscating estates, levying fines, and even imposing the death penalty to seize wealth. He crippled the Roman Senate in the process.”

Freed from opposition, he built an extravagant bridge at Baiae and introduced crippling taxes on everything, taverns, artisans, slaves, food, litigation, weddings, even prostitutes and their pimps. Taxes doubled in just four years, leaving ordinary Romans broken and resentful.

Is this not eerily familiar? In some places in Nigeria today, task force agents harass even mourners transporting corpses. They must pay the State.

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Caligula’s Rome is a warning. When opposition disappears, tyranny grows unchecked, and taxation becomes limitless. Nigeria is already on that path.

Read this report: “It was gathered that governors on the shopping list of the APC include the Enugu State governor, Peter Ndubuisi Mbah, Bayelsa State governor, Douye Diri, Plateau State governor, Caleb Muftwang and the Zamfara State governor, Alhaji Dauda Lawal.”

That was how the Nigerian Tribune concluded its lead story on page five of its Monday, August 25, 2025, edition, titled: “Tension grips PDP leaders as APC targets more govs.” Two riders followed: “South-East, South-South, North-Central govs on shopping list” and “Tinubu to receive another PDP gov on arrival.”

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An average student of Nigeria’s political history should be deeply troubled by this report. The concern is not just the well-known fact that Nigeria’s political elite rarely show fidelity to principles, loyalty, or decency, but rather the imminent danger this trend poses to the survival of democracy and to the ordinary masses.

We must ask ourselves: what awaits the common man if Nigeria slides into a one-party state? Can the current wielder of power – the architect of this emerging no-opposition order – truly manage such a system? If today, under the pretense of multiparty democracy, impunity has already reached its peak, what happens when there is no one left to challenge those in power?

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History warns us that we are about to repeat our mistakes. Nigeria has a peculiar habit of forgetting her sordid past. Some call it resilience; I disagree. What we parade as resilience is actually a battered psyche. Nigerians have been beaten into submission by those who weaponized poverty. With crumbs thrown here and there, leaders get away with political robbery. We have been conquered.

The sages warned us that thunder must not be allowed to strike twice in the same place. Their reasoning was simple: if bad history repeats itself, its second coming will be catastrophic – so tragic that no one will have the words to describe it.

That Nigeria is gradually sliding into a one-party state should raise an alarm. Euphemism has no place here. A one-party Nigeria under President Bola Ahmed Tinubu is an invitation to disaster. The consequences will not stop with the opposition; even those within the president’s inner circle will eventually taste the venom. Tyrants spare no one—not even their favourites. We are headed down that perilous road.

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Make no mistake: a one-party state will kill this democracy. It has happened before—not once, but twice. Some of us lived through it, others read about it. Nigeria lost two republics because those in power chose tyranny and crushed opposition.

The First Republic collapsed when the ruling Northern People’s Congress (NPC) attempted to monopolise political power. It formed alliances, coerced defections, and silenced dissent. Opposition leaders were detained on trumped-up charges. Resistance sparked the violent Operation Wetie in Western Nigeria in 1962. By January 15, 1966, the First Republic was dead.

What followed were the January and July 1966 coups, and then a 30-month civil war that consumed over two million lives. Yet we learnt nothing. When the chance came again in 1979, we squandered it.

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By mid-1982, the ruling National Party of Nigeria (NPN) had perfected its plan to decimate opposition. It swallowed the PRP in Kano and Kaduna, captured the NPP in old Anambra, and went after the Unity Party of Nigeria (UPN). Oyo and Bendel fell to its onslaught, while only Ondo resisted—and that resistance produced bloodshed. By December 1983, the Second Republic collapsed, swept away by the military coup of Major-General Muhammadu Buhari. For the next 16 years, Nigeria was under the jackboot.

Whichever way we spin it, the truth is clear: the destruction of opposition in both the First and Second Republics laid the foundation for their collapse.

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Those who defend the current defections as freedom of association miss the point. We are not disputing that right. What we warn against is the danger of acquiescing while political and economic power concentrate in the hands of one man. As Aesop warned: “Those who voluntarily put power into the hands of a tyrant must not wonder if it be at last turned against themselves.”

Those who think they can collaborate with the ruling party, pledging loyalty in opposition but serving power in secret, should think again. When tyranny consumes a nation, no one is spared. As the proverb goes, when heaven falls, it falls on everyone; the rain has no enemy.

Caligula reigned until his own guards turned on him. Tyranny and rebellion are monozygotic twins. Let today’s plotters of a one-party Nigeria take note.

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Steven Levitsky and Daniel Ziblatt, in “How Democracies Die” (2018), explain it best: democracies rarely collapse through external invasion. They are destroyed from within, through the slow erosion of norms and the ambitions of authoritarian leaders. Nigeria is walking that path again.

Chude Jideonwo and Adebola Williams, in How to Win Elections in Africa (2017), observe that political parties in Nigeria are not built on coherent ideology but on opportunism. The APC, they argue, never stood on any deep philosophy; it merely capitalized on the weaknesses of the PDP. That explains why even serving PDP governors are defecting in droves to join it. But what exactly is the attraction? To answer that, let us revisit one of our old moonlight tales.

Long ago, when animals behaved like humans, Ikún, the deaf squirrel, desired to live as long as mortals. It went to a diviner to seek the Oracle’s blessing.

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The divination was swift and stern: for Ikún to live long, it must avoid anything sweet that came from the enemy.

Ikún protested. Why should it shun sweet things when everyone knew it delighted in them?

MORE FROM THE AUTHOR:OPINION: Tinubu And His Northern Teachers

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The Oracle replied with finality: What is sweet kills faster than anything else.

Ikún left, troubled. It wondered who its enemy could be. The only one that came to mind was the groundnut farmer, whose produce it relished. Resolving to obey the warning, Ikún avoided the groundnut farm.

The farmer soon noticed that Ikún no longer raided his crops. Suspicious, he tried several tricks. He attempted to smoke Ikún out of its burrow, but failed—for as elders say, òrò burúkú kii ká ikún mó’lé (misfortune never meets the squirrel at home). He tried hunting it at night, but that too failed—for ikún kii jé l’óru (the squirrel never ventures out at night).

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At last, the farmer set a trap, using ripe banana as bait. The fruit was carefully placed over the blade, waiting to spring at the slightest tug.

Not long after, Ikún wandered by and spotted the banana. Overjoyed, it rushed forward. Banana was a delicacy, and its sweetness irresistible. Ikún took a bite, wagged its tail, and forgot all about the Oracle’s warning. It bit again, wagged its tail, and then tried to carry the whole banana away.

In a flash, the trap snapped. Ikún was caught between the jaws of death. Too late, it realised the truth: the sweet gift from the enemy was a lure to destruction. With its dying breath, it remembered the Oracle’s words.

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Our elders, who preserved this tale, summed it up in the saying: ikun ńjẹ ògèdè, ikún ńrè’dí; ikún ò mọ̀ pé ohun tó dùn mà únpa ènìyàn (the squirrel wags its tail while eating banana, not knowing that what is sweet is what kills a man).

And that, precisely, is what the defecting governors are doing today. The banana from the ruling APC is sweet, but beneath its sweetness lies a deadly trap.

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PHOTOS: Brazil Welcomes Tinubu With Full Military Honours In Brasília

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Brazil on Monday rolled out full military honours at the Planalto Palace in Brasília to receive President Bola Tinubu.

Tinubu’s Special Adviser on Information and Strategy, Bayo Onanuga, disclosed this on X on Monday.

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READ ALSO:Tinubu Signs Direct Flight, Other Agreements With Brazil

Onanuga said Tinubu was welcomed by his host, President Luiz Inácio Lula da Silva.

Onanuga said Tinubu was welcomed by his host, President Luiz Inácio Lula da Silva.

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He wrote, “More photos of the official reception for President Tinubu at the Planalto Palace in Brasília, Monday, August 25, 2025. Brazil’s President Luiz Inácio Lula da Silva welcomed President Bola Tinubu with full military honours.”

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Tinubu Signs Direct Flight, Other Agreements With Brazil

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President Bola Ahmed Tinubu has signed a landmark Bilateral Air Service Agreement with Brazil, signalling the establishment of direct air links between Nigeria and South America’s largest economy.

The agreement was formalised on Monday during Tinubu’s official state visit to Brasília.

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Media aide to the minister, Tunde Moshood, made this known through a statement, made available to The PUNCH.

At the signing ceremony which was witnessed by Messrs Nigerian President, Tinubu and the Brazilian President Luiz Inácio Lula da Silva in Brasilia also had the Nigeria’s Minister of Aviation and Aerospace Development, Festus Keyamo, signed the agreement on behalf of Nigeria, while Brazil’s Minister of Transport, Silvio Costa Filho, also signed for the host country.

READ ALSO:2027: You Will Lose 80% Of Northern Muslim Votes If…, APC Forum Warns Tinubu

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The BASA creates a new framework for direct flights between Nigeria and Brazil, with the potential to significantly enhance trade, tourism, investment, and diplomatic relations.

The statement further noted that, “ It also marks a key step in Nigeria’s broader efforts to strengthen international partnerships and improve global connectivity.”

Tinubu had arrived in Brazil with a delegation that included Minister of Finance and Coordinating Minister of the Economy, Wale Edun; Minister of State for Foreign Affairs, Bianca Ojukwu; Minister of Agriculture and Food Security, Abubakar Kyari; and other senior government officials.

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According to the statement, the Brazilian President welcomed the agreement, expressing his administration’s commitment to expanding cooperation with Nigeria in sectors such as aviation, agriculture, and infrastructure.

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He described the BASA as a reflection of the strong ties between both countries and an opportunity to deepen economic and cultural collaboration.

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Tinubu is also scheduled to hold meetings with key Brazilian government officials, including the President of the Senate, the President of the Chamber of Deputies, and the President of the Supreme Federal Court.

The two-day visit will include high-level discussions between Nigerian and Brazilian delegations across various sectors, as both nations explore opportunities for mutual growth and development.

The statement reads, “The ongoing state visit will also see President Tinubu meeting the President of the Brazilian Senate at the National Congress, the President of the Chamber of Deputies, and the President of the Supreme Federal Court.

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“The working visit, which continues tomorrow, will also feature high-level engagements between Nigerian and Brazilian delegations across various sectors, underscoring both nations’ commitment to building a future of mutual growth and prosperity.”

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