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CBN replies Sanusi, says no to devaluation of naira

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Stop building new mosques when our girls are illiterates, Sanusi tells northerners

In from Timothy Enietan-Matthews (Nation’s capital) . . .
The Central Bank of Nigeria (CBN) has dismissed calls by the Emir of Kano, Alhaji Mohammed Sanusi II, for a further devaluation of the naira.
The CBN, while dismissing the call, said there would be no further devaluation of the naira.
CBN’s Deputy Governor, Corporate Services Directorate, Mr. Adebayo Adelabu, stated this on Saturday in Lagos while speaking with journalists at the investiture ceremony of the Chattered Institute of Bankers of Nigeria, CIBN.
It will recalled that Emir Sanusi, who was CBN”s immediate past governor, had Friday faulted the decision of the CBN and the federal government not to further devalue the naira, and also to retain fuel subsidy.
He said: “it is wrong to continue with the fuel subsidy. It is wrong to continue to pretend that you can keep the naira at a certain level, when the price of oil is falling, without depleting your reserves. You have to make a choice.”
But Adelabu said: “We are all aware of the CBN’s official position on this, that there will not be any further devaluation of the naira, and this has been communicated.
“We have made the official position known to the public. There could be comments from various quarters of the economy but we have made our official position known”, he said.
The position of the CBN also received the blessing of CIBN, as its President, Otunba Adebola Osibogun, said: “The CBN itself is a member of the institute; of course they consult with us, we work together, even though they take the decision, so whatever the CBN decides, the institute always support.”
Speaking on the theme “Diversifying the Revenue base of Nigeria economy, the CBN Deputy Governor, Adelabu said though Nigeria missed the opportunity to diversify the economy when the crude oil prices where above $100 per barrel, doing so has become a must in view of the decline in crude oil prices and revenue.

Read also: CBN won’t review forex policy for importers –Emefiele

He said: “The dwindling oil prices, reduction in volume of crude oil production are affecting us, with revenue nose diving, because we relied so much on crude oil. We lost the opportunity to diversify between 2009 and 2014 because we had relative stability in exchange rate, and oil prices went up as high as $110.
“We should have diversified in the period of boom. Now we don’t need anybody to teach us that we have to look at other areas of revenue. This is a challenge to everybody especially to the banking industry.
“Banks need to look at other sectors in terms of lending. Fortunately we are blessed with almost every resource on the earth.
“Agriculture is a sector we must focus on. We have lots and lots of solid mineral resources; and we should focus on developing them. Most importantly, we have to patronise local products.
“Every Nigerian should de-emphasise consumption of imported goods, because by doing so, we are helping other countries. We should all patronise locally made goods.”

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