FG rules out devaluation of naira

Against calls by prominent international organisations and individuals, including the International Monetary Fund (IMF) and former governor of the Central Bank of Nigeria (CBN) and now Emir of Kano, Muhammadu Sanusi II for the nation’s currency, the Naira to be devalued, Vice president, Yemi Osinbajo on Thursday said it would not happen.
He stated that further devaluation of the Naira was not a solution to the current economic down turn in the country.
Osinbajo stated this when he received the Ambassadors of Italy, Mr. Fulvio Rustico and the Canadian High Commissioner in Nigeria Mr. Perry John Calderwood in his office at the presidential villa, Abuja.
He also recalled that President Muhammadu Buhari had at different fora said that a further devaluation of the Nigerian currency was not healthy for the Nigerian economy.
He said “I don’t agree on devaluation and it is not that I am doctrinaire about it. In the first place, it is not a solution, we are not exporting significantly. And the way things are, devaluation will not help the local economy.

Read also: Naira Devaluation: Ignore Sanusi, NLC tells Nigerians

“What we need to do is to start spending more on the economy and then things will ease up a bit.”
He however announced, that the federal government plans to set up $25 billion Infrastructural Fund which would be sourced from local and international sources including Nigeria’s Sovereign Wealth Fund.
He disclosed that already other sovereign wealth funds have indicated interest in the fund which would be used to address the nation’s decaying road, rail and power infrastructures.
Osinbajo also restated that the current foreign exchange restriction is a temporary measure to ensure that “we don’t deplete our foreign exchange substantially,” at a time when the prices of oil in the international market is dropping.
He added that the restriction is also to bring some stability to the country’s foreign reserves without which Foreign Direct Investment, FDI, might be affected.
“I am not sure devaluation is the issue, but how to ensure foreign direct investment which is more useful”, he said.

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