Again, Buhari rejects devaluation of naira

Buhari in France

President Muhammadu Buhari has again ruled out the possibility of his government devaluing the naira.

The president said Saturday that the priority of his administration was to ensure national food security before export of food products.

The president said this while contributing to 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 Sharm El-Sheikh, Egypt.

President Buhari said for 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.

“The land is there and we need machinery inputs, fertilizer and insecticides,” he said.

Reiterating his opposition to the devaluation of the naira, President Buhari said Nigeria cannot compete with developed countries which produce to compete among themselves, and can afford to devalue their local currencies.

“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 president asked.

“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 pressure government to devalue the naira.

President Buhari, who expressed optimism that Nigeria would get out of its current economic downturn, noted that another major problem militating against economic revival is the huge resources deployed towards fighting insurgency and international terrorism.

He, however, commended the support being received from the international community in the administration’s fight against terrorism as well as cooperation in tracing looted funds stashed away in foreign countries.

Responding to a question on his performance since he assumed office, the president said that his administration had been quite focused on three fundamental issues of securing the country, reviving the economy and stamping out corruption.

“The message on corruption has been driven home vividly and Nigerians are very acceptable to the message,” he said, adding that those accused of stealing public funds are cooperating by voluntarily providing useful information while investigations and prosecutions are ongoing.

In his opening address at the Forum, the Egyptian President, Abdel-Fattah El-Sisi, said Africa needs to concentrate on transforming into knowledge societies using innovation and research. The Presidents of Gabon, Equatorial Guinea, Sudan and the Prime Minister of Ethiopia also participated at the Roundtable.

In his opening message, the President of the African Development Bank (ADB), Akinwumi Adesina, said that “Africa must think big, act big and develop big.”

Before departing Egypt, President Buhari and his Egyptian host, had a bilateral discussion on security, military cooperation, agriculture and solid minerals development.

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  • donMe$$i

    What does he mean they are focusing on Agriculture and solid minerals development?
    BUT THE MINISTRY OF (mis)INFORMATION RECEIVED A HIGHER ALLOCATION THAN AGRIC AND SOLID MINERALS!
    What that means in simple terms is, they are focusing on (mis)Information dissemination.
    From all intents and purposes, they are focusing on diversifying PROPAGANDA..AKA ‘FABU’!

    SHAME!

    • Aloa Akan

      If you have been following the trend in solid minerals, the minister has made it clear that this year they want to carry out a geological survey of all the minerals that are present in the country. They want to be sure of what we have before they can invite people to invest. That was why he said they are embarking on the geological survey.

      Meanwhile, the way you experts think is very ridiculous. In one breath you are encouraging government to sell all government owned enterprises like power assets and refineries; in another breath, you want government to also pump huge sum of money into solid minerals sector so that you could be appeased. Isn’t that confusing?

      • Baba B

        My brother why bother to respond that stark illiterate who thinks because he can read and write makes him informed

      • whales1212

        Lol

      • Analyst

        You the the search for oil in North East or where? One thing is for minister to say something but when you look at the budget you will found that Aso Rock rent which is to be collected by Landlord Buhari is more than that of Agric and Solid mineral. Looter are looter. He who looted with Abacha must show us his loot before talking.

        • Aloa Akan

          I know you wanted to contribute. God in His Infinite Mercies will grant you the wisdom to do so.

    • Abdul

      kindly give us a break mister, you must not comment on every topic.

  • Tafidan Dogon Daji

    I am confident and optimistic that Nigeria would be economically cum security healthy in a few months ahead but all accused persons must be regarded as innocent unless by a court of law pronouncement.The government at the center should respect rights of all citizens.Those granted bail should be allowed to enjoy it no matter the hatred and malice.
    Nigerians should rally round PMB in his fight against all filts pulling down the country to its kness.We should continue to say NO to devaluation by looking right back to three decades this desease had caused the nation.

  • OLODONOMICS in action

    If Duncee could not know the difference between millions and billions in the budget figures how will he understand macro economics with particular reference to Foreign Exchange hedging and/or regulation? Dr Jonathan is to blame for everything…including his failure of Maths in 1957. Indeed, Nigerians don enter one chance bus. This is called Olodonomics!

    • OROSANYA

      depreciation of ₦ nowadays especially in parallel market, although parallel or black market can be manipulated by the traders, they either do it on their self interest, so those who doesn’t believe in the prosperity of nigeria can harbour $ as they can on imported goods hereby cause hike!

      But in my own point of view the depreciation of ₦ is a great success to this nation if well manage to nigeria situation today. the looted fund is in $ and it must be refunded back in $, so if $1 is ₦198 when the money is looted, then if the money is refund today at $1 to ₦350 the nation has gained ₦152!

      imagine if $1=₦1000, the gain is ₦902!

      So in conclusion if the government managed to refund the $trillion looted and the refunded money, change it in parallel market, this will reduce the pressure on ₦ and the scarcity of $ in parallel market so the ₦=$.

      (take note all the money took out of CBN during jonathan regime were changed in parallel market before distributed)

      you have other opinion?

      2. …2017 budget will beat record… ₦1 quadrillion!, all the social sectors will be substantially finance to trillions ₦, poverty will be completely eradicated and by the end of year 2018 Nigeria will be declared a developed state and classify one of the first three country in the index of human .

      I know you will argue on how this can happen with the economics situation of today, low foreign reserve, low oil price, with depreciation of ₦.

      yes oil price is down, foreign reserve is dry but we still have foreign looted fund reserve at hand! when recovered and well managed, it won’t be problem to have money for this budget!

      we can only pray that a $ hit ₦1000 and all $1 trillion looted recovered!

      I know for sure that with the determination of this government and the support of foreign nation to help recovered all $ trillion looted it will happen…..$1 trillion recovered and change to ₦ will give us ₦1 quadrillion needed to finance that budget!

      year 2017 bye bye to poverty!

      3. ….OIL AND LFR

      THE TWO MAIN MEANS OF INCOME FOR NIGERIA ECONOMY

      …..with the determination of Nigeria president Buhari and the trust of of world leaders toward nigeria, from America, Europe, Asia and gulf nation the down price of oil and the rise in $ is not a corse to nigeria but a blessing.

      Among the oil producing countries, and OPEC only nigeria have what other didn’t, we have oil in common but nigeria have the looters as well, this opportunity raise nigeria above other oil nation and when all this country are frustrated with oil down price, nigeria have turn to her looted fund reserved to keep her economy running.

      Nigeria is bless with oil and (LFR) looted fund reserve, when the oil price is down, the rise-up of dollar $ hike the value of our LFR, if government inject the LFR recovered on the economy, it will boot our economy!

      at rate of $ to ₦ today if government managed to recovered $1 trillion LFR it will give us:

      $1=₦400, $1trillion=₦400 trillion!

      Note (LFR is looted fund reserve)

      • Paul Young

        Hahaha, somebody wake this man. I mean i would love for all the things you said to happen but there is no way we are going to recover $1 trillion LFR according to you, and certainly not before the end of the year. Anyway i have learnt one today, LFR

        I JUST WANT TO ENJOY THE DIVIDENDS OF DEMOCRACY

      • Analyst

        keep dreaming….when you wake up, we discuss.

    • Aloa Akan

      The joke is on you young man. The “olodo” has you chose to call him has given you enough reason to counter him. Who benefits from devaluation in a mono-economy and import-dependent country like Nigeria?

      With all your A1 in Mathematics and all the awards in Economics, Econometrics, and Advanced Economics, you can’t provide a convincing answer to an “olodo”. You should be ashamed of yourself.

  • favourtalk

    Does pmb look like someone who is playing? Let us developed our home and stop running around the world

  • Isi Agwo

    Just as if the Naira is waiting for the daft, certificate forging illiterate’s word before it continues on its downward spiral. Bokohari’s presence in Aso Rock, with his coconut head, is enough reason for the Naira to go down the hill.

  • Otile

    The president is quite right here. Devaluing the Naira now does not make any economic sense. Why should we devalue, what are we manufacturing to export? Nigeria is a consumer nation at the mercy of manufacturers.

    What Nigeria needs at this point is stop wasting resources on North East and start building profitable industries.

    • Aloa Akan

      For the first time?

    • Analyst

      When you cannot get the foreign currency even in the bank to import as they keep sending us to the parallel market, what do you have to do now?

      • Otile

        Do like China. At first Chairman Mao banned all imported goods, cut ties with predatory foreign market forces, shunned borrowing money from World Bank, killed all coupists and ex-coupists, hanged all known corrupt officials, made education free for all citizens, rewarded scholars specializing in science and Math. He then looked inward, promoted unity and justice for all, checked religious extremists, abolished polygamy, checked excessive population growth, and emphasized nationalism.

        Today China is self-sufficient, 2nd most powerful economic power in the world. Here in the Republic of Nigeria Buhari is a non-starter. He is not doing anything useful to mankind. He is nepotistic and anti-science. His policies are not the way to develop a nation.

        Don’t get me wrong, I do not hate Buhari. The problem is that he does not know any better, his advisers and appointee do not know any better either. There are many Nigerians from every zone who can move the country forward, but such people are often ignored or clamped down by the corrupt forces.

  • tuby NY

    While PMB sounds determined n unmoved about d current naira value crisis or d calls for its devaluation — he seems quite right about his reasons though n I surely agreed with him. Pres. Buhari might not have spoken extensively about economical reason n reasons about his decision/believe.. but it is understandable if one understand basic economic rules n developments.

    Every single thing that is imported in2 Nigeria is bn produced smwhere, n it’s surely keeps ppl employed in these various countries at d expense of our HUGE working age/class Nigerians, that are unemployed 2day n wth no hope of getting one 2morro if we don’t start producing n buying locally. Imported n mono-product (oil) dependant economy lik ours are not sustainable, n no country can ever developed n provide jobs 4her population. But Mr. President has 2mak sure we have light in this country for a start though..

  • Aloa Akan

    I want all the proponents of Devaluation to answer these two simple questions:

    1) When Nigeria has enough dollar in her reserves and have the world best as Minister of Finance and CBN governor, why was naira never appreciated to N100 to $1?

    2) If we devalue naira to like N350 to $1, is there 100% guarantee that the parallel market will be stable at that rate?

    Thank you.

  • Analyst

    “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 president asked. You mean Buhari doesn’t have anyone to tell him why? No wonder the naira has bein trouble?