‘Some people are manipulating the naira’ – Oshiomhole

Edo state Governor, Adams Oshiomhole, on Thursday, endorsed the Muhammadu Buhari administration’s refusal to devalue the naira, saying that the intention of government was to strengthen the economy, protect the poor and ensure that currency manipulators were forced out of business.

The comrade governor stated this while delivering an address at the first edition of The Cable Colloquim entitled: “The Naira on Trial: To Devalue or Not?.”

He said that devaluing the currency will adversely affect the poor in Nigeria and benefit the well to do, currency investors and collaborative private sector operatives, who are lobbying for the naira to be devalued.

He further stated that since the Structural Adjustment Program (SAP) was introduced, devaluation of the naira have not favored the economy in any way.

He was quoted as saying that:

“The first time the concept of devaluation was introduced to us by the International Monetary Fund (IMF), it generated a national debate.

“Chief Olu Falae lectured us about the beauty of devaluation. When you devalue, the price of imported goods will go up, the capacity to consume will drop, and total outflow of forex will be less.

“Nigerian goods will become cheaper, importation will be less and exportation will be more. This will lead to more foreign exchange and will shore up our foreign reserves.’’

According to him, each time the currency was devalued, it resulted in an almost proportional increase in importation of goods because of “Nigerians’ appetite for foreign or imported goods’’.

He added that devaluing the naira at a time when domestic production is low, will be a huge mistake.

He further stated that data from Nigeria’s apex bank suggests that the “the thesis that if we devalue, we will export more, cannot be supported.

“The real critical question is – will devaluation curb our appetite for imported goods? I am unable to find gains in devaluation,’’ Oshiomhole added.

He noted that currency investors were manipulating the naira and putting pressure on the central bank to devalue the currency, so they could profit from it.

Oshiomhole went further to say that Nigeria was battling with guesses and assumptions on how to manage the falling naira due to profits gained from manipulation of the exchange rate.

“Some people are speculating on the naira; just manipulating the naira for their selfish ends. This is how a section of the business community make their money.’’

Gov. Oshiomhole also stated that workers in Nigerian have become trapped as a result of the selfish actions of currency manipulators and investors.

He urged Nigerians to support the foreign exchange policies of the central bank and the federal government’s position on the devaluation of naira.

The year 2016 saw the naira fall to its all time low, with several analyst speculating that the national currency might continue to free fall. In a bid to defend the naira, the central bank and the federal government introduced several policies that they hope will protect the naira, defend the economy, while encouraging investors and small scale business owners.

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