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In response to mounting economic challenges caused by the recent depreciation of the Nigerian naira, President Bola Tinubu has named prominent billionaire businessmen, including Aliko Dangote, Femi Otedola, Abdul Samad Rabiu, and Tony Elumelu, to the nation’s new Economy Advisory Committee. The announcement came following a high-profile meeting held at the Presidential Villa in Abuja on Sunday.
Tinubu, addressing the urgent need to address the economic hardships facing Nigerians, unveiled the establishment of an economy advisory committee comprising representatives from the federal government, sub-national entities, and the private sector.
The meeting saw the participation of influential figures such as Dangote, chairman of the Dangote Group, Otedola, chairman of Geregu Power Plc and First Bank Holdings Plc, Rabiu, chairman of BUA Group, and Elumelu, group chairman of United Bank for Africa and Transnational Corporation Plc (Transcorp), among others.
Naira’s freefall takes toll Dangote and Rabiu’s fortunes
Enlisting the expertise of industry leaders highlights the seriousness of the economic situation, especially the significant depreciation of the Nigerian naira against the U.S. dollar. Nigerian billionaires, like every citizen, have keenly felt the consequences of this currency devaluation.
As the naira depreciates significantly, closing at N1,665.50 per U.S. dollar on Friday, Nigerian billionaires like Dangote and Rabiu are seeing a substantial decline in their fortunes.
In just a month, Rabiu’s net worth has dropped by more than $3.1 billion, falling from $8.4 billion to $5.3 billion, while Dangote’s net worth has decreased from $20 billion to $12.9 billion. This decline is attributed to the devaluation of the naira and a recent pullback in the share price of Dangote Cement.
Industry captains advocate swift action amidst economic turmoil
In the face of economic challenges, Dangote emphasizes the need for swift and decisive action from both the public and private sectors. Elumelu echoes similar sentiments, stressing the importance of collaborative efforts to stabilize the economy and restore confidence among citizens and investors. The economy advisory committee is expected to play a crucial role in developing sustainable solutions to alleviate the burdens faced by Nigerians.
Amid the economic challenges, the Central Bank of Nigeria (CBN) has introduced sweeping policy guidelines aimed at Bureau de Change operators (BDCs). These measures include a ban on street trading and the imposition of fresh per capita share requirements for registration, indicating a commitment to addressing the root causes of the economic downturn.
As Nigeria grapples with these economic challenges, the newly appointed economy advisory committee is poised to play a pivotal role in formulating strategies to navigate the turbulent economic landscape and pave the way for sustainable growth and development.
