Devaluation of the Naira is not an appropriate option in the current economic realities in the country, and offers no solutions as far as the Buhari administration is concerned, vice president, Prof Yemi Osinbajo, said yesterday.
President Muhammadu Buhari had earlier expressed his views that a further devaluation of the Nigerian currency is not healthy for the nation’seconomy.
Speaking when he received Ambassadors from Italy and Canada among other callers in his office yesterday, Osinbajo re-emphasised the federal government’s position on the matter.
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.”
According to him in a statement by his spokesman Laolu Amanda , “ what we need to do is to start spending more on the economy and then things will ease up a bit.”
He observed that the issues around the economy are no exact sciences, stressing that what is important is to be reasonably flexible in dealing with them.
He outlined federal government’s plans to set-up a $25 billion Infrastructural Fund which would be sourced from local and international sources including through Nigeria’s Sovereign Wealth Fund and also the pension fund among others.
The vice president 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. He said “this is our approach to speeding up the country’s infrastructural development.”
Osinbajo restated that the current foreign exchange restriction is a temporary measure to ensure that “we dont 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.
Source : Leadership