The huge gap between the official CBN exchange rates and exchange rates of forex at the black market has caused a huge loophole where some people exploit to earn millions if not billions of naira monthly, former CBN governor and Emir of Kano, Muhammadu Sanusi, said on Wednesday.
Sanusi explained while speaking at the at 15th Joint National Council on Development Planning in Kano:
“We have created our own billionaires since 2015 from foreign exchange subsidy. For instance, when the CBN was selling dollar at N197 and people were buying at N300, if I sit down in my garden and pick up my phone I would have enough people to call in the industry to get 10 million dollars at officials rate and sell at N300 and make a profit of over N1bn and if I do that four times in a year, for doing nothing I would have earned N4bn.
“And people were telling us that this policy was to help the poor. We should not devalue because if we do the poor people would suffer.
“People that were profiting from this were the ones telling the government that if you devalue people would suffer; meanwhile they all got the dollar at N197 and price their goods at N300.”