Governor Adams Oshiomhole of Edo State, on Thursday, defended the Federal Government’s refusal to devalue the naira. Oshiomhole who spoke in Lagos while delivering a keynote address at the maiden edition of The Cable Colloquium, said that the government’s position was to pull speculators out of business.
Oshiomhole The Colloquium was entitled: “The Naira on Trial: To Devalue or Not? ‘’ According to him, a history of devaluation of the nation’s currency since the Structural Adjustment Programme (SAP) has not benefited the economy in any guise. “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,’’ Oshiomhole said.
The governor, however, noted that devaluation had never translated to an approximate increase in exported goods because of “Nigerians’ appetite for foreign or imported goods.’’ He argued that available statistics from the Central Bank of Nigeria (CBN) showed that “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 said. He said that currency speculators were the ones manipulating the naira, and exerting pressures on the CBN to devalue it, for their selfish gains.
He explained that the nation was dealing with pure speculations and assumptions on the nation’s currency because a few profit from such manipulations 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,’’
Oshiomhole said. The former labour leader said that the Nigerian worker had been trapped as a result of the actions of currency manipulators. He called on well-meaning Nigerians to support the forex policy of the CBN and the stand by the Federal Government not to devalue the nation’s currency.
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Foolish man, because he still gets his dollars directly from CBN, he does not know that market forces have already devalued the Naira just bcos it is not official declared. Even our Banks have joined black market rate. I recently bought dollars through my GTbank for Forex trading and when they debited me in Naira, the exchange rate was 300 as against the CBN official rate of 197 but funny thing was that when I made profit from my trading and returned the dollars and its profit back to my account, I was credited with the CBN official rate.
ReplyDeleteHighest level of corruption and yet this mad man is telling me rubbish
You allow the bank to play upon your intelligence or naivety If they can sell to you at black market price and latter buy from you at CBN rate. Why don't you demand for hard currency and go to the black market to sell. This is part of what Oshiomole was telling us that some people are benefiting or feeding fat on the issue of currency devaluation. The bank officials/directors too are one of them. Like what Oshiomole said, If we devalue the naira, It means that the purchasing power of naira will reduce while other currencies will have more purchasing power over our naira- This is another slave trade. For example, if your total savings in a year is one million naira, hardly will this buy you a good flat screen TV and a laptop. that were sold for 300,000 naira a year ago. After devaluation, what 1000 dollars cannot buy in nigeria a year ago, will now buy several of it /up to times 3.
DeleteNaira must not be devalued. Importation should be discouraged, most consumer goods that can be manufactured/produced locally such as cornflakes, body creams, soap, groundnut oil, wines, chicken, diary products, tooth pick, cotton bud, biro, pens, pencils, ruler, petroleum products should be ban. Secondly, any country that is not allowing our local products to enter their country, theirs too should not be allowed to enter our country.
Oshiomohole is now a Prof of Economics. Hahahaaahhaa! Laff wan kill me self? It tell you the kind of Economic team that APC carry come and their policies. Na one chance Nigerians enter soo! APSeeeeeeeeeeeeeeeeee! Changi! A country is not ruled with lies,Propaganda and grammar . Na so so mouth they get. Na God go save us from this APC wahala ooo!
ReplyDeleteAre you suggesting we made wrong choice during last election for choosing APC? Please answer.
DeleteCapital YES....even the lame man knows...
Deleteyes
DeleteWhat measures, therefore, have you put in place to plug the holes of round-tripping? This is nothing but bribing Peter to pay Paul or how do we call it? Stop the rigmarole, Oshiomole.
ReplyDelete@anonymous Feb12,9:59am. you never see say na mistake. Na one chance people
ReplyDeleteThis textile worker turned governor will not close his month in matters that are obviously behond him. Who does he know about economy? Does he think it is by blowing and telling lais (appology to mr Lai, the chief liar)?
ReplyDelete