As the the naira continues to plummet the call for its devaluation surges high among experts. They believe that devaluation is the only way out for Nigeria. Devaluation simply is the deliberate act by the CBN to reduce the value of the naira. To have a better understanding of the naira devaluation brouhaha, INFORMATION NIGERIA has put together in this piece the stance of President Buhari and Governor Oshiomhole’s on the issue….
President Muhammadu Buhari, while speaking in Kenya, said export-driven economies could devalue their currencies and not an import-dependent economy like Nigeria. Devaluation, he said, would result in further inflation and hardship for the poor and the middle class in Nigeria. He said he had no intention of bringing further hardship on the poor who, he believes, have suffered enough. Also in France last September, Buhari said: “I do not think it is healthy for us to get the naira devalued. The Central Bank is providing ample foreign exchange (forex) to essential services and industries.”
Gov Adams Oshiomhole speaking at the Cable Colloquium, a programme organised by THE CABLE on Channels TV to discuss whether or not the naira should be devalued on February 11 said the issue of devaluation of the naira would not have surfaced at all if oil prices have not fallen drastically, adding that investment bankers are the ones calling for its devaluation.
Oshiomhole explained that when naira is devalued, prices of foreign goods (which Nigerians mainly consume) will increase and the idea of naira devaluation is to force Nigerians to stop consuming foreign goods and focus on becoming a producing nation, because Nigerian made goods will be cheaper and more sorted after. The governor however noted that it has not worked in Nigeria as no matter how expensive foreign goods are in Nigeria, some will still go ahead and buy.
Oshiomhole also noted that the in 2014, when the naira was devalued, rather than have an increase in export, we had an increase in imports. On a final note he said, the true value of naira is what it can get you in the local market not otherwise.
What do you think???