Nigerian Rights activist Femi Falana has raised serious allegations of economic sabotage by the International Monetary Fund (IMF) and the World Bank in Nigeria, accusing them of colluding with the Central Bank of Nigeria to obstruct currency swap initiatives and bolster the dominance of the United States Dollar.
Falana expressed his concerns in a recent statement titled “Why Nigeria must join BRICS,” emphasising that while other nations are striving to promote their local currencies, the Nigerian government continues to “dollarise” the economy.
Falana referred to a currency exchange agreement between Nigeria and China that aimed to enhance local currency liquidity and facilitate transactions between the two countries.
However, he claimed that the IMF and World Bank, alongside the Central Bank of Nigeria, conspired to frustrate this currency swap, with the intention of perpetuating the dominance of the US Dollar in Nigeria.
In spite of Nigeria’s significant role as an oil and petroleum supplier to China’s thriving economy, the Federal Government persistently demands payment in US Dollars instead of the local currency, the Naira.
The rights activist cited Kenya, Russia, and India as examples of countries embracing transactions in their respective local currencies. Additionally, he highlighted the plans of Brazil, Russia, India, China, and South Africa to introduce a new international currency for cross-border trade among member nations, aimed at challenging the US Dollar’s long-standing status as the world’s reserve currency.
Falana advocated for Nigeria to take a lead in the African Union’s project, the African Continental Free Trade Area (AfCFTA), which was implemented two years ago. He emphasised the importance of promoting regional trade as an alternative to the increasing dollarization of Nigeria’s vulnerable economy. He urged the Federal Government to urgently renew the currency swap with China and pursue similar agreements with other friendly nations, enabling Nigeria to conduct imports and receive payments in the Naira.
Furthermore, Falana recommended that the Nigerian government collaborate with the BRICS nations to advocate for a new international currency, aligning with Section 19(e) of the Constitution, which mandates the promotion of a just world economic order. He highlighted the need for decisive action to save Nigeria’s economy from its current state of dollarisation and urged a shift away from the unsuccessful redesign of the Naira.