He stated that countries which had liberalized their foreign exchange markets, like Nigeria, experienced better exchange rates.
Bagudu expressed confidence that the Nigeria foreign exchange market would perform better, citing global indices that indicated improvements. He advised both local and foreign investors to take steps in this direction.
Bagudu, a former Kebbi State governor, made these remarks during a chat with some business editors in Lagos on Friday, about six months after Tinubu removed the rate cap on the exchange rate, among other currency reforms.
He said, “Mr. President has signed two Executive Orders. We have been deceiving ourselves; we have run a system where we don’t have dollars, or we don’t have foreign exchange anymore. So even if you desire to enjoy repatration, you don’t have, because you have boxed yourself into a corner. It has to be a willing-buyer, willing-seller market.
“There are things you can’t control. If somebody makes legislation and says that every bag of yams will cost N100, the people who hold the yams will just take them quickly back to the store and lock them. So the steps taken by Mr. President and the central bank may be inconvenient now in terms of the fluctuation, but we believe it will stabilise and get better. Countries that have chosen that route have done better on average in the long-run.”
Bagudu also said Nigeria had reduced borrowing in the 2024 budget, adding that the country was making efforts to raise revenue in order to achieve better economic stability.
Bagudu also advised Nigerians to demand the resignation of public officials if they failed to perform in the office they had been assigned.
He said, “We should task people, we should ask questions from public officials so that (for example) if you don’t think you can do it, step aside and allow somebody who can do it. That’s how companies are run.