Why naira should not be devalued — Oshiomhole

Adams Oshiomhole, Edo State Governor
Adams Oshiomhole, Edo State Governor

The Governor of Edo State, Adams Oshiomhole, on Thursday in Lagos defended the Federal Government’s refusal to devalue the naira.

Mr. Oshiomhole said, while delivering a keynote address at the maiden edition of The Cable Colloquium, that the government’s position was to pull speculators out of business.

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 benefitted 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,’’ Mr. 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,’’ Mr. 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,’’ Mr. 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.

(NAN)


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  • Rollingdollar

    This local champion always propagating theory that has no basis. The Naira has since devalued itself, which naira is he talking about now. Jack of all trade,master of none; that’s Oshiomole for you.

    • OluJay

      Why don’t u respond intelligently to d issues & points raised by d comrade instead descending into diatribe?

    • share Idea

      Don’t mind him, he is now attributing the naira fall on speculators, how the fall of oil price is based on speculators, he does not understand simple economic theory about Demand and Supply

    • Matthew Ikponmwonba

      It ‘s a shame on you Rollingdollar on your awkward and irrational input. It is equally disastrous for you at your age to keep on playing blind politics with your own shadow if this thrash of yours is all you can say. If you are able to look beyond your nose, you will comprehend that the Comrade Governor is only having his say and raised an argument in favour of the current Government economic policy of refusing to further devalue the Naira. I hope you will agree with me that there is always a two side to a coin? I expected you to have your say on which school of taught you feel will alleviate our current economic recession backing your argument with facts and figures and in relation with real life economic situation of Nigeria as Governor Oshiomhole has argued in his view. Maybe you only read the news caption and never bother to read and digest the points the Comrade governor was making before you started casting aspersion.

  • UOU

    Motor park labour khaki cape varde inlaw economic adviser, in shadow

    • TrueNja

      With all your worthless education, why can’t you jump into Lagoon or Atlantic ocean since a motor park labor khaki is your governor for almost 8 years.

      • UOU

        Not my governor, ewe

  • Charlie

    The problem in Nigeria is that many of our leaders do not take the time to educate themselves on issues because they actually believe that they were elected geniuses. They are not scientific in their thinking, they don’t think economics is a science, so they think every ridiculous idea is as valid as any time tested economic laws such as demand and supply. That’s why economic illiterates like Oshiomole keep talking nonsense.

  • Dr.Dan

    This man must be leaving under the rock not to know that high demand and weak supply had already devalued the naira. Official devaluation will just be a way of minimizing the loss. First bank charges me #425 to £1 each time I use my naira card. There is no point of claiming the naira is #197 to a dollar when Nigerian banks charges parallel market rate.

  • Mo Mody

    With advisers like Comrade Oshiomhole, a former textile labourer now playing Economist, Nigeria is heading into serious trouble under President Buhari. If Oshiomhole has a basic understanding of economics, he would have known that the devaluation of the Naira under SAP would not have any positive effect until Nigeria’s debt problems as at that time were solved. Undoubtably, Nigeria began to experience positive effects in terms of foreign capital inflow beginning with the negotiated write-off of Nigeria debt under the supervision of Dr. NOI.

    • TrueNja

      “A former textile laborer….”
      Oshiomhole is a 2 term action governor of Edo State. With your useless PhD or whatever, what have you achieved in life.

      • Mo Mody

        It is only in Nigeria that people are termed “action governors” (whatever that means) and get applause from their naive supporters for building mere roundabouts with overbloated budgets, while their unemployed youth lanquish in prostiution in foreign countries.

        • adeade

          Please don’t mind the guy,. He enjoys being ruled by the illiterates.. Oshiomole who doesn’t have a basic university degree now turns to economic adviser…Nawa oooooo

  • musa aliero

    Confused man oshiomole

  • musa aliero

    Still waiting for your to tell us d minister that stole $6billion

    • Fuzio

      The attorney general claimed that they have recovered more than $2 Trillion so far from ex corrupt officials. Why can’t they fund the Forex market with that money?

  • Fuzio

    The next thing to do is to ban currency speculation in Nigeria. This is the same policy Buhari pursued in his first outing as president in 1983 with disastrous effect. It led to rationing and the infamous ‘essential commodity’ syndrome. We are back at it again. Nigeria will continue to do the same thing over and over again and expecting a different outcome each time. Insanity is what they call it.

  • Fuzio

    Let him go and earn Dollars and give it to the the government at an exchange rate of N197 per $1 and see whether what he can buy in Nigeria with N197 is equivalent with what he can buy with $1 elsewhere. That is the test.