Renowned Nigerian human rights activist and lawyer Femi Falana has accused the International Monetary Fund (IMF) and the World Bank of colluding with the Central Bank of Nigeria (CBN) to undermine the country’s currency swap arrangements with China. Falana claims that these global financial institutions are conspiring to maintain the dominance of the US dollar in Nigeria, as reported by The Punch.
Currency swap agreement under scrutiny
Falana’s statements come after reports that Nigeria’s currency swap arrangement with China has not provided the anticipated benefits. Nigerian economic experts have questioned the effectiveness of the five-year-old agreement, arguing that it has failed to alleviate pressure on the local currency due to a trade imbalance between the two nations.
The activist lawyer acknowledges the disappointing results of the swap arrangement but attributes this failure to the collaboration between the IMF, the World Bank, and the CBN. He believes that this alliance has intentionally sabotaged the currency swap deal to ensure the continued dominance of the US dollar in Nigeria’s economy.
Continued dollarization amid calls for BRICS membership
In his statement, Falana criticizes the Nigerian federal government for continuing to dollarize the economy while other countries are working to promote their own currencies. He also expresses disappointment in the government’s lack of interest in joining the BRICS bloc, which includes Brazil, Russia, India, China, and South Africa.
The activist lawyer argues that Nigeria should follow the example of other nations that have signaled their intent to join BRICS and reconsider their approach to currency management.
Controversial currency redesign policy
Falana also takes issue with the CBN’s contentious currency redesign policy, which has led to a widespread shortage of naira banknotes. He suggests that, rather than pursuing this redesign policy, the Nigerian government should focus on renewing the currency swap arrangement with China and exploring similar agreements with other friendly nations.
In conclusion, Femi Falana’s accusations highlight concerns about the influence of international financial institutions on Nigeria’s economic policies and call for a reassessment of the country’s approach to currency management and international relations.
