received Ambassadors from Italy and
Canada among other callers in his office,
the Vice President spoke in a similar vein
The 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 President
Muhammadu Buhari administration is
concerned.
This position was stated on Thursday by the
Vice President, Prof. Yemi Osinbajo (SAN).
Buhari had earlier expressed his views that
a further devaluation of the Nigerian
currency is not healthy for the Nigerian
economy.
And speaking on Thursday when he received
Ambassadors from Italy and Canada among
other callers in his office, the Vice President
spoke in a similar vein about the Naira.
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.
“What we need to do is to start spending
more on the economy and then things will
ease up a bit.”
Osinbajo 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 the 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 don’t 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 might be affected.
In his reckoning, the FDI is more forward
looking than portfolio investments, which is
being affected by the decision to manage
the foreign exchange resources of the
country at this time.
“I am not sure devaluation is the issue, but
how to ensure foreign direct investment,
which is more useful,” the Vice President
noted, adding that he expects a bit more
stability and direction in the next few
months.
He disclosed that the Federal Government
would work with the Central Bank of Nigeria
to ensure that legitimate businesses are not
badly impacted by the current foreign
exchange restrictions, especially those who
have previous contracts and loan
commitments.
The Vice President received the Italian
Ambassador in Nigeria, Fulvio Rustico; and
the Canadian High Commissioner in Nigeria,
Perry John Calderwood.
Prof. Osinbajo expressed the appreciation
of the Federal Government to both envoys
on behalf of Buhari and also looked forward
to closer and deeper ties between Nigeria
and the two countries.
A delegation of top executives from
Citigroup, led byJim Cowles, also paid a
courtesy call on the Vice Presidenton
Thursday.
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