Buhari’s Decision: Nigeria To Lose N7.6 billion Over Forex Subsidy To Hajj Pilgrims
President Muhammadu Buhari[/caption]
The wrong-headed decision by President Muhammadu Buhari directing the Central Bank of Nigeria (CBN) to sell dollars to pilgrims going to the Hajj at an exchange rate of N197 will see Nigeria losing about N7.6billion.
The CBN in a circular on August 4 to all authorized dealers and the general public explained that the sale of the forex will be funneled through commercial banks who are then mandated to sell to pilgrims at N197.
Pilgrims are expected to purchase a minimum of $750 and a maximum of $1000 per pilgrim.
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According to the apex bank, a total of 65,197 pilgrims are expected to benefit from this window which means that the CBN will be selling as much as $65,197,000 assuming that every pilgrim buys as much as $1000 each.
Nigeria’s official exchange rate closed at about N315 which suggest that this sale could cost Nigerian tax payers about N7, 693, 246,000 in exchange rate loss (based on 315 -197=118).
It will be recalled that in July 2015, the Federal Government sold subsidized forex to pilgrims at N170 at a time when the official exchange rate was about N197.
However, the stark difference has alarmed most Nigerians who have taken to social media to kick.
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The forex subsidy coming at a time of recession and millions finding it hard to feed has raised questions as to the rationale for the president’s directive.
