NADECO USA WARNS AGAINST FG STOPPAGE OF DIASPORA REMITTANCES IN NIGERIA ..... Says, "We Will Galvanize And Mobilize Support

"NADECO USA, will confidently say that, for three consecutive years, we have had an amazing diaspora remittances into our domestic economy. In 2021, it was $20.1 billion, 2022 was $20.13 billion while in 2023, the amount recorded was $20 billion. This is no doubt, is a clear indication that, dollar remittances is one of the key factors that is sustaining and driving our forex market." NADECO USA.

A political pressure group advocating for quality governance and sustainable¹¹ development and leadership in Nigeria, under the aegis of the National Democratic Coalition, NADECO USA has continued to raise its voice in calling out the government to make life more meaningful for its citizenry and not become an impediment to the well-being of the people it swore on oath to protect and lead.

The group, in a terse statement issued and signed by its Spokesman, Comrade David Adenekan on Tuesday 20th February 2024 and copies widely circulated both in Nigeria and the Diaspora, warned the Federal Goverment against adopting measures that will further impoverish the people especially those in the diaspora who make their legitimate earnings overseas and make remittances home in order to assist their family and loved ones including saving for their return home and investing back in their fatherland.

According to the statement, "Today, there is no doubt that, diaspora remittances remain the saving grace of the great shortfall in our forex market and the decision by the Tinubu led administration to stop the payment of money that would be sent home in dollars, will not be accepted but, resisted. 

NADECO USA, will confidently say that, for three consecutive years, we have had an amazing diaspora remittances into our domestic economy. In 2021, it was $20.1 billion, 2022 was $20.13 billion while in 2023, the amount recorded was $20 billion. This is no doubt, is a clear indication that, dollar remittances is one of the key factors that is sustaining and driving our forex market. 

However, since the introduction of a new policy by the Central Bank of Nigeria to stop the payment of diaspora remittances in dollars, we have seen a downturn trend in the value of Naira. The free fall mode of the naira to the dollar is now deepening by the day. It is obvious from empirical observation that, this new policy is creating scarcity due to the monopoly of the forex market by the banking operators and overregulation by the Central Bank of Nigeria, in a free market economy.

The question therefore is; what is the rationale behind the stoppage of people from collecting their money in dollars (hard currencies) in a laissez-faire economy? 

This same policy was in the past,  introduced by Central Bank of Nigeria under former President Goodluck Ebele Azikiwe Jonathan to fight against the hoarding of dollars in which artificial scarcity was being created by syndicates outside the grip and financial control of the Central Bank of Nigeria, in its attempt to raise the value of the dollar against the naira. The policy never achieved the desired result as it further worsened and led to the decline in the value of our local currency (Naira) against the dollar.

In light of this, the Central Bank of Nigeria was compelled to revert to the old order of making payment in dollars or hard currencies. 

Suffice it to say, the banking system in Nigeria is saturated by unscrupulous elements that are collaborating with many speculators at the parallel market to swindle the country of much needed dollars in the forex market. 

Yes, the evil and corruption in our banking system still persist today and this new policy by CBN does not allow consumers that needed independence to make a choice of payment. This will give the operators of most of these commercial banks undue advantage to continue to work with Bureau De Change Operators and speculators to swindle the country of the much needed dollars in the forex market. 

Today, we are already seeing a monopoly of the forex market by the banking operators which has resulted in the value of dollar to surge against the naira.

Nigerians in the diaspora are known to work very hard to make a living and they will not allow any undue advantage to be provided to the banking operators in Nigeria to milk them of their hard earned income and earnings that they have to part with to support businesses, family members and friends in Nigeria.

Without mincing words, NADECO USA therefore strongly calls on the Governor of the Central Bank of Nigeria, Olayemi Cardoso, to immediately revert to the old method of payment in dollars (hard currencies) or else, NADECO USA will evolve a strong mechanism to mount a strong campaign against diaspora remittances in Nigeria.

"To be forewarned is forearmed.

We move......

David Adenekan Is The Spokesperson For NADECO USA.