Nigeria Will Not Devalue The Naira Because Because The Country Is Import Dependent, Say President Buhari

by Benson Agoha | Nigeria
 

* President Muhammadu Buhari of Nigeria. (Credit: via Pulse)

 

Nigeria will not devalue the Naira any further because she is import dependent, according to President Muhammadu Buhari.

 

President Buhari spoke at a Presidential Panel Roundtable on Investment and Growth Opportunities at the opening session of the Africa 2016: Business for Africa, Egypt and the World at the Egyptian resort of Sharm El-Sheikh.

 

His statement was said to have allayed fears of the business community, many of which have come to believe that a devaluation was imminent.

 

He said "Developed countries are competing among themselves and when they devalue they compete better and manufacture and export more. But we are not competing and exporting but importing everything including toothpicks. So, why should we devalue our currency?"

 

The Naira is currently exchanging at N287.04 /£1.

 

President Buhari stressed that Nigeria being a mono-economy dependent on oil, and with a teeming unemployed youth population, the way out of the current slump in the global oil market, is for the administration to focus on agriculture and solid minerals development.

 

He said "The land is there and we need machinery inputs, fertilizer and insecticides."

* President Muhammadu Buhari (Centre) Speaks at the Africa 2016
Business For Africa, Egypt and the World Roundtable on Investment,
at the Egyptian resort of Sharm El-Sheikh.

On Friday, the Naira fell to record-lows against the dollar, as Africa’s largest oil producer faces its worst financial crisis in years.

 

The naira exchanged at N345 to the dollar and N485 to the British pound - a depreciation of 20 and 45 in the parallel markets respectively, according to Per Second News findings.

 

According to him, "We want to be more productive and self-sufficient in food and other basic things such as clothing. For our government, we like to encourage local production and efficiency."

 

He added that those who have developed taste for foreign luxury goods should continue to pay for them rather than pressure the government to devalue the naira.