While some partisans and economic novices fret over Tinubu’s economic policies, a neighbour is watching and taking notes. Ghanaian leader John Mahama has ordered his finance minister John Jinapor to map out a strategy to stop its practice of paying dollars for crude oil. The Ghanaian president wants his country’s firm Tema Oil Refinery and the private Sentuo refinery to target about 100,000 barrels per day. Here is how an official puts it: “I was at Mr. President’s house, and he said, ‘when the Tema Oil Refinery takes delivery of crude how do they pay?’ Then I said, ‘Mr. President, in accordance with the Petroleum Holding Fund and the Petroleum Revenue Management Act, you have to go and look for dollars and pay in foreign currency.’ Then he gave me instructions. Fortunately, the finance minister and the Central Bank of Ghana Governor were around. He said rethink, take a second look at it. When Tema Oil Refinery takes the crude process and sells it in Ghana cedi; why don’t we pay Ghana cedi into that account rather than going to the forex and buying dollars. And then the CBN Governor said, “Yes, Mr. President you’re right! Because when we go to the market and we buy forex, we put pressure on our currency. We add cost to it. So next week let’s have a meeting so that we can restrategise.” It currently clocks in at 45,000 Bpd. The reason is that paying all that money for crude will cost a lot in forex reserves. It is looking at what Nigeria is doing a few miles across its borders.
President Bola Tinubu introduced that audacious step a few months after he ascended the throne. Since then, we have saved up to 40 percent of our foreign exchange reserves. It is not just a way to save money. It also translates into currency sovereignty and, by extension, the dignity of the nation. Is it a wonder that a government that inherited $4 billion in its coffers in 2023 now boasts over 50 billion today?
Many Nigerians now effect transactions with Naira cards. It is because we have reserves in forex. Hence school fees can be paid, business transactions concluded and travels happen without cutting corners to extract dollars. With Tinubu’s policy, we are using Naira to save the Naira, hence a stabilised forex market. Not only that, we are using naira to ease access to dollars. Tinubu made naira king, so other currencies can curtsey when we travel.
If another country can see it and emulate, why can we not enjoy it and acknowledge? The policy is helping traders as far away as China where our people now do business in Naira. Let us not moan, let us applaud the pride of the naira.
