ABUJA (Sundiata Post) – Despite the ongoing implementation of the flexible foreign exchange policy which has systematically devalued the nation’s currency, President Muhammadu Buhari has insisted he does not see any benefit that the country could derive from devaluation of the naira.
The Central Bank of Nigeria (CBN) had last week announced ‘flexible’ foreign exchange rate policy.
With the new policy the naira was officially devalued and the exchange rate is now market-driven.
The policy also abolished the dual exchange rate regime. Under the new plan, the official exchange rate of the naira will exist in a “single flexible window,” which will likely be determined by market forces, the CBN Governor, Godwin Emeifele had said.
The CBN still retains a small intervention window to allow it intervene in some instances ‘critical’ to the nation’s economic growth and will apply foreign exchange at an adjustable rate between N230 and N250, depending on the rate in the market.
Buhari had in February at the opening session of the Africa 2016: Business for Africa, Egypt and the World at Sharm El-Sheikh, Egypt, said he was not in support of devaluation of the naira, saying that Nigeria, which is not an exporting nation, would be worst hit if the naira was devalued.
Also in March in Kenya while addressing Nigerians in that country said he won’t kill the naria.
But at the breaking of fast dinner with the business community on Monday in Abuja, Buhari said, “How much benefit have we derived from naira devaluation in the past.
“I don’t like the returns I get from the CBN because that culminated in the demand that let us devalue the naria. In August 1985 the naria was N1.3 to a dollar but now you need N300 or N350 to a dollar. What do we derive from that? How much benefit can we derive from this ruthless devaluation of the naira. I’m not an economist neither a businessman, I fail to appreciate what is the economic explanation. What has happened to us now is that we have maneuvered ourselves into mono-economy which led to the collapse we are seeing now”.
The President told the business community that the responsibility was on their shoulders to help get the economy out of the woods, putting to their investments and a lot of people in their employment.
“A lot of responsibilities now fall on your shoulders now. You have a lot of investments, a lot of people you employ”.
Buhari said as part of plans to diversify the economy, 13 states have been identified that can produce rice that will feed the nation in 18 months.
He agreed with the business community that Nigeria would be in trouble, describing as disappointing that Nigeria imported things like tomatoes, rice, wheat, among others that could be produced in the country.
Giving a vote of thanks on behalf of the group, chairman of Unilever, Kola Jamodu pledged the support of the group to Buhari’s administration as it strives to take the Nigerian economy out of the woods.
He said, “We are with you as you strive to reposion the Nigerian economy. We are very much in support of your move to diversify the economy.
“I have the mandate of the group that we will give you all the support because if the economy is in disarray, the private sector cannot survive”, he added.
Among those who attended the dinner are Alhaji Aliko Dangote, Mr. Tony Elumelu, Mr. Femi Otedola, Mr. Wale Tinubu, Mr. Jim Ovia, Alhaji Umar Mutalab, Mrs. Folorunsho Alakija and Mrs. Kemi Nelson, among others.
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