VP Osinbajo, ex-CBN Governor ‘clash’ in Lagos over naira devaluation

Professor Yemi Osinbajo, Vice President of Nigeria

The Vice President, Yemi Osinbajo, on Saturday reaffirmed the position of the Federal Government that the country’s currency would not be devalued in spite of pressures to act otherwise.

But the former Central Bank of Nigeria (CBN) Governor, Joseph Sanusi, replied that delaying the devaluation was akin to postponing the evil day.

The positions were taken at a town hall meeting that the Vice President held with his co-tenants in the Victoria Garden City (VGC) on the Lekki-Epe axis of Lagos.

At the widely attended and thought provoking event, Mr. Osinbajo insisted that devaluation was not on the table, adding “that is the position of government’’.

According to him, the CBN will operate in line with the speech delivered by President Muhammadu Buhari, after he was elected to come up with flexible exchange rate to be supported by strong monetary policies.

He said that the foreign exchange policy of government was to stop unnecessary consumption of imported goods and promote local manufacturing.

However, former CBN Governor, Mr. Sanusi, a VGC resident, advised the government to either devalue the currency or stop the confusion between the official and parallel market exchange rates.

He said allowing an official rate at N97 per dollar while the parallel market sold for over N300 was “distractive’’.

“Naira is already devalued and government not accepting it is postponing the evil day,’’ Mr. Sanusi said.

Mr. Osinbajo had also said government met a falling revenue profile in May 2015, which was down by about 70 per cent compared to the same period of the preceding year.

He aid that in spite of the high cost of about $22 to produce a barrel of crude oil now selling at about $33 dollars, no fewer than 38 per cent of the foreign reserve was spent on importing petroleum products.

He also said the previous administration was spending about N20 billion on food importations annually, which reduced the nation’s foreign reserve drastically from about $40 billion to about $25 billion.

As a result, he said, the present administration was bent on diversification of the economy from crude oil to agriculture and solid minerals production.

Mr. Osinbajo said the focus on agriculture was to make Nigeria self-sufficient in rice, poultry and palm oil production as well as develop the entire agriculture value chain to create wealth and jobs for the teeming youth.

The vice president further said the administration was targeting 2018 for complete reliance on refined petroleum products, adding that the petrochemical industry, railway infrastructure and provision of other infrastructure were top on the priority of the federal government.

He told the VGC community that the major areas of focus of the Mr. Buhari administration were security, governance, anti-corruption and economic rejuvenation.

According to him, Boko Haram insurgency had been degraded as a “military might’’ although pockets of suicide bombings still take place.

“This is a challenge we must tackle going forward but the other challenge is the over two million people displaced by insurgency who need resettlement,’’ he added.

He said the idea was to re-settle the people back to their farming occupation first, but that would be after the entire North East land had been de-mined.

He said government was mindful also of the agitation by the Indigenous People of Biafra (IPOB), pipeline vandalism in the South-South and the Fulani- farmers clash in some communities, all which pose security threats.

Mr. Osinbajo said in governance, corruption was a critical issue because “the whole system, both public and private, is replete with corruption which has become the rule rather than the exception.

He recalled the arms purchase scandal “where a huge amount of money was spent but unfortunately it went into private pockets’’.

He recounted that fake Armoured Personnel Carriers and fake bullet proof vests were purchased for soldiers thus endangering the lives of anti- terrorism combatants.

“Unless we seriously fight corruption through a systematic rebirth of our public system, the future of the country is in grave danger,’’ Mr. Osinbajo said.

He said the administration had a robust plan to uplift education standards through the recruitment of 500,000 additional graduate teachers to serve in the rural areas, development of materials for teacher education and focus on science, engineering, technology and mathematics education.

He said President Buhari had put together an asset recovery team, adding that looted assets and funds recovered would be returned to the federation account.

The vice president also announced that all idle mining licences issued by the past administrations were being mopped up, while the government was reviewing the contract signed between the CBN and Systemspec on remittances made into the Treasury Single Account.

The Chairman of the VGC Residents Association, Olusegun Ladega, requested Mr. Osinbajo to intervene in the flooding of the estate caused by the non-provision of ancillary drainage on the Lekki-Epe Expressway by the Lagos State Government.

Also, another resident, Tochi Okwor, raised concerns about the high rate of communicable diseases, such as TB and HIV and AIDS, which she said might reach unacceptable proportion if nothing was done.

She also advised the federal government to remove the Nigeria Centre for Disease Control (NCDC) from the Health Ministry and make it an independent organisation to enable the NCDC play its role effectively. (NAN)


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  • 9ja deserves better dan Buhari

    Nigeria is animal’s game village, where tortoise rule with his manipulation and evil, though Called wisdom in d eyes of the furry under the leadership of APC/Buhari. This message is meant for those who know the stories of tortoise well. #IssuesProfundusTimeBrevis

    APC and her followers are like morons who you could tell to climb an electrical pole/high tension without any preventive measure against electric shock, and then when you come down I will give you one million naira from our money, you know we are brothers, just the way Satan tempted Jesus. You could imagine why a section of the country leaders hate education and only proffer it till date. #IssuesProfundusTimeBrevis

  • Artful ºDodger

    Sanusi the voodoo economist still talking about devaluation. If you do not have stock of stolen dollars stashed away somewhere i wonder if you will still be singing the same song. You must remember to always think of those who have never had access to government treasury to steal, the common man and woman in the village who have to sell his agricultural produce to get a naira. These kind of people do not exist in the world of the advocates of devaluation which you belong. God punish you there!

    • Mentor

      Please tell them that even if they devalue the Naira to N10,000 to the $1, it will not solve the underlying institutional, structural, and infrastructural constraints impacting on Nigeria’s productivity and prosperity.

    • DTaj

      Joseph Sanusi, not Lamido Sanusi! Use your brain before posting comments…

      • aisha ani

        Thanks for pointing that out.

  • f.d.x escalope

    @disqus_UxVAvGuiki:disqus

    But it’s a thing of regret that Yemi Osinbajo does not or simply can not articulate his thoughts
    on why there will be no devaluation notwithstanding the rising inflation stoked by the two-tiered
    exchange rate in place, with the parallel market exchange rate of 345 Naira to a dollar today
    governing cooking oil and rice imports. As inflation creeps in, due dollar shortage to do quick
    commercial business, the parallel rate of exchange spreads to machines and chemicals for
    small scale industries, and, is beginning to bob up in the prices of medicines at pharmacies.

    • ??????????

      DOES NIGERIA HAVE ENOUGH DOLLARS TO FUND THE EXCHANGE RATE OF 198 TO A DOLLAR?

      THAT IS THE BOTTOM-LINE…THAT IS THE ULTIMATE QUESTION…. WITH $29B FOREIGN RESERVES.

      • Artful ºDodger

        With prudence and discipline yes. More items need to be added to the import prohibition list. Items like Rice. shoes and textile all of which Nigeria already have some significant local capacity. Luxury goods should attract a 10,000% import duties to make them unattractive while the CBN is to give priority to essential industrial machinery before luxury goods like cars etc.

  • Mentor

    As for comparison of Naira with other African countries currencies, you can redinominate the Naira, as Ghana did.

    How about oil price under Jonathan @ $115 vs now @ $30 under Buhari?

  • Sparzo

    N1 = 8.85 Italian Lira.

    Are Nigerians better off than Italians?
    You and your voodoo accounting.

  • peaceometer

    Devaluing naira can never solve the problem at hand, if I may ask, if you devalue naira are you telling me Nigeria has developed to producing country, rather the problem is shifted for our children. Let improve and sustain industries and bring in money, rather than taking money outside the country in folds. Enugu coal mine, Ajaokuta still rolling, palm production , rice milling are ways Nigeria can become the world market of purchase rather than country of dumping. We should not be fed, Nigeria has resources to feed the world. I bet you.I have spoken

    • lala

      Agreed. In a recent discussion i had with a few friends, i postulated that if all Nigerians currently residing in the country decide that over the next one year none of us will travel out of the country, i bet without a shadow of doubt that the exchange rate at the [parallel market will come crashing down. It may even go lover than the CBN rate, i haven’t traveled in two years upon my return to Nigeria having lived abroad for ages. trust me im well alive and kicking. Nonsense. What gains did past devaluation offer?

      • peaceometer

        Thank you.

  • The parallel market exchange rate can not be the same with official rate because of greed. Even if the government devalues the naira today, the parallel market rate Will be pushed up the next moment. So devaluation is not the solution. In fact one of the solutions is urgent demolition of the parallel market. Two exchange rate systems is ruinous to the naira.

  • professor2000

    @Peaceometer:disqus

    Nigeria’s deadly mess today is under-reported

    Yes, you are right. Nigeria has the potentials to overcome its problems, but it does not have the leadership needed
    to achieve that feat. President Buhari has no theoretical training in the philosophy of social sciences to conceive
    the TOTAL CHANGE Nigeria requires, because no facet of public administration is free of gross corruption to be
    considered worth retaining.

    Nigeria is in utter mess and risks imploding into real fighting war on tribal, sectarian,
    and economic deprivation grounds. In political history terms, Nigeria is today in full-blown regressive syndrome.
    Buhari is reported to have approved hosting an economic summit. But truth is, economics is not the solution to
    anomie. In Nigeria today, public laws are trampled upon by routine beheading on the streets.

    • Public Records

      EXCHANGE RATE: AFRICA.

      South Africa: Rand 1 = 13 Naira . Angola:
      1 kwanza = 2 Naira . Botswana: 1 Pula = 18 Naira . Cape Verde: 1 Escudo = 2
      Naira . Algeria: 1 Dinar = 2 Naira . Egypt: 1 Pound = 25 Naira . Eritrea: 1
      Nakata = 13 Naira . Ethiopia: 1 Birr = 9 Naira . Ghana: 1 Cedi = 50 Naira .
      Gambia 1 Dalasi = 5 Naira . Kenya: 1 shilling = 3 Naira . Liberia: 1 Dinar = 4
      Naira . Lesotho: 1 Loti = 14 Naira . Libya: 1 Dinar = 146 Naira . Morrocco: 1
      Dirham = 146 Naira . Madagascar: 1 Ariary = 4 Naira . Mauritius: 1 Rupee = 6
      Naira . Malawi: 1 kwacha = 11 Naira . Mozambique: 1 Metical = 4 Naira .
      Namibia: 1 Dollar = 12 Naira . Seychelles: 1 Rupee = 12 Naira . Sudan: 1 pound
      = 32 Naira . Swaziland: 1 Lilangeri = 13 Naira . Tunisia: 1 Dinar = 100 Naira .
      Zambia: 1 kwacha = 18 Naira

    • mannix

      Selective justice is injustice. Corruption can’t be fought with people like

      Raji Fashola and Bola Ahmed Tinubu dressed up in false robes as the

      anti-corruption sheriffs in town. That’s insane and laughable, to be sure!

      • breaking news

        News-break:

        “Men of the Independent Corrupt Practices and other related offences
        Commission (ICPC) were in Ekiti State for the better part of last
        week, in continuation of the anti-graft agency’s investigation of the
        alleged misappropriation of over N25 billion.

        The ICPC team of investigators, which included two men and one woman,
        visited some of the projects claimed to have been executed with the
        N25 billion bond obtained from the capital market by the Fayemi
        administration.

        The visit was said to be at the prompting of petitions written by the
        State Government and a group, Save Ekiti Coalition (SEC).”

        • i dey hear

          “It would come as no great surprise if Bola Tinubu’s boasted great wealth did NOT derive from any

          stupendous inheritance – ancient or modern. I have also become aware that he (Bola Tinubu) is a

          beneficiary of most of the lucrative contracts in all the (Yoruba) ACN states, without exception”.

          …………Chief Tom Ikimi

          [August 26th, 2014]

          • Incircle

            WITH ALL THIS NONSENSE GOING ON IN NIGERIA MY FEARS ARE HEIGHTENED.
            NIGERIA MAY COLLAPSE ANYTIME SOON. EDO STATE WORKERS ARE NOT PAID
            FOR 12 MONTHS UNDER ADAM OSHIMOLE’S MERE NOISE-MAKING GOVERNMENT.
            I WONDER HOW THOSE WORKERS IN EGOR LOCAL GOVERNMENT CAN HOLD ON.

        • Oluwasanmi

          ………this is what people are saying….exactly what Nigerians are complaining about Buhari……
          ……….why did Buhari refuse to look into this Ekiti multi-billion theft mess since last year?…….
          …….It took several petitions from Ayo Fayose and Ekiti people before EFCC started probe……..
          …whereas, the same EFCC moved into action since June against PDP’s Sule Lamido in Jigawa…
          ………After protests of selective justice, EFCC now thinks Kayode Fayemi may actually be a thief….

    • Basketmouth

      Go and read Winston Churchill’s biography. You will understand that theoretical knowledge amounts to nothing in leading a nation with complex political and economic situation like Nigeria. Churchill despite his theoretical deficit was literally begged by the Britons to lead the Nation during the second world war. He was not in any way cerebral like Chamberlain and others before him but yet he was a successful leader at a critical time in British history. It was our over reliance on theory that has failed so many of our technocrats. Successful leaders think out of the box without depending on some theories that have no bearing on the reality on ground.

      • professor2000

        @basketmouth:disqus : You have a good point. But one thing. Remember one thing. Churchill was elected
        majorly for his proved skills to plan and prosecute a military war with Germany. It is doubtful if without
        a war looming he’d ever have been considered, if the problem were that of ECONOMIC RECESSION.

        Once a politician invokes CHANGE as mantra he will make himself vulnerable to fail because it is as
        absolute as announcing another creation day, biblically speaking. Barack Obama who invoked it is
        rated as just another mediocre American president who’ll get a mention in history only as a black man
        under whose tenure Osama bin Laden was killed by U.S special forces in Pakistan.

        • Basketmouth

          It very well may be that Churchill may or may not have succeeded had the situation surrounding his ascension to power been different. However that is just an assumption. Regarding Barack Obama, I think history will record him as one of the most successful American president. One only need to look at where America was when he came to office and where America is today. I believe we are not giving the guy enough credit for his achievement. He has created millions of job over the past 8 years and this is a country that was losing 850 thousand jobs a month when he became the president.

          Buhari has just been in office for how many months and we are all convincing ourselves he has no clue. Well my answer to that is we have another 3 years and few months to decide if he actually have a clue or not. Anyway I appreciate your civil contribution. You are one of those few on this forum who talks idea and not personalities.

  • Charles

    Naira has already devalued itself. The VP and his friends can say all they want.

  • Omooba Adekunle Orafidiya

    VP Osinbajo is a houseboy. He has no say.

  • Gugurus Ekpa

    Joseph Sanusi is an !diot. He simply wants the old ways to continue.

    • objective

      When he was CBN Governor, he couldn’t do anything but only promoted corruption. Now he’s there postulating some unacceptable theories. He should just go and sit down or be investigated. He’s part of the problem.

  • StormRider1

    Is devaluation really the best answer or herd-mentality is turning some people into myopic thinkers?

  • MI

    Devaluation will only worsen our case…. When the facade about dollar demand wears out or is forced out, in favor of local production, all will be well again. No to devaluation, we are not China and therefore hold no advantage at the moment for our country. Devaluation will only escalate cost of commodities e.g we still import bulk of petroleum product therefore, fuel cost will increase by same percentage number. Everything goes up… not only the items on the list of 41 but everything except salaries that will remain same. Ever wonder, when China, Japan, devalue their currency, the US, UK, IMF, World banks etc complain bitterly to very tensed levels; yet same institutions and countries want our currency devalued Why?. It’s never in our interest – that’s simply, common sense.
    Even if we devalue the naira doesn’t make the dollar available for the needy; it’s a function of demand and supply. The current challenge we face isn’t peculiar to Nigeria alone but many countries of the world. Level of hardship is directly proportional to the level of foolishness in their good times.God willing I see things like the Inonso cars selling several thousands of units in 2 – 3yrs from now, 100% rice sufficiency, textiles, furnitures and many others. With a population of nearly 180million people, we must grow our economy, at the minimum, making our own things.

  • VP is a LIAR

    Buhari went cap in hand to borrow over 5b fromn the world bank–if they wanted him to devalue the naira, they would say unless u bring down the value of NAIRASIS, we would not give u the loan period—For a beggar has no choice simple native intelligence–so why all the noise about Buhari refusal to devalue the naira which is already on a roller coaster ride? The Apes in APC should please stop playing politics with the minds of Nigerians-Aware Nigeria is animal’s game village, where tortoise rule with his manipulation and evil, though Called wisdom in d eyes of the furry under the leadership of APC/Buhari. This message is meant for those who know the stories of tortoise well. #IssuesProfundusTimeBrevis

    • bigbang

      That makes no sense. The World bank is a lender. They have no leverage or mandate to do such a thing. We will just borrow money from the BRICS bank. Worst case scenario, Nigeria will borrow more money domestically. Worst case scenario we will have 65 percent budget implementation, instead of 100 percent. You can’t threaten Nigeria.

      • Ahmad

        U think the Mumu you are replying knows what BRICS means? Lol.

  • AriaFada

    Listening to the comments, is like listening to goats voting for Eid. Chai..ignorance is a wicked thing and it is at its most wicked when educated leaders like the VP lead people astray. I can understand Buhari, in the same way I understand a child who puts his finger in electricity socket, both are limited by knowledge and don’t know any better.
    Mr Osibanjo, correctly describes the symptom of the economic disease; Importation of food and luxuries and high import dependency, but it is the cure where he reveals himself an economic quack.
    The parallel exchange rate policy is not stopping imports of undesirable luxury, it is encouraging round tripping such that banks are no longer supplying genuine importers with $, instead the banks prefer to sell on the parallel exchange. A pharmaceutical factory employing Nigerians was told by CBN to source bottles from local manufacturers, the problem is no Nigerian factory produces pharmaceutical grade bottles.
    A cable manufacturer told by the CBN to source steel coatings in Nigeria, cannot find Nigerian suppliers of the grades of steel required and is unable to fulfil contracts to maintain old and degraded electrical lines, making worse black outs.
    A food maker told to buy palm oil from Nigerian sources, but Nigeria does not produce enough palm oil therefore production and staff have to be cut back.
    Airlines cannot get dollar to buy spare parts and we want to travel safely.

    The list goes on and on as bad policy begins to trickle down to all parts of the economy. For Buhari to make the same mistake once is forgivable, but to make the same mistake twice is astounding economic incompetence. I once said I would not criticise any government until at least one year has passed, but to keep silent would be a crime.

    • S.T (Ohio)

      @ariafada:disqus

      I just pray that the Buhari government will not just end up as the worst government
      Nigeria has ever had. So far, there is little reason to be hopeful. The Muhamadu Buhari
      government is long on hypocrisy and short on ideas. I also fear that the solution to Nigeria’s
      worsening state of affairs may be long in coming since the Buhari government doesn’t
      want to ever admit the obvious that things are getting worse rather than better in Nigeria.
      To admit the truth is the first condition to a resolution of a bad situation but truth is in short
      supply inside the Buhari government at the moment.

    • lala

      But we have to start somewhere. If we had maintained this policy from Buharis first coming, maybe by now we would have quality pharmaceutical bottles, quality steel products, and enough palm oil. What value has the previous devaluation added to the nation? Sometimes you have to take the bull by the horns to get out of the quagmire. Necessity is the mother of invention. It isn’t about textbook economic theories that add little value to our nation. we have been devaluing since 1986 what has changed? The minute we devalue you can bet that the parallel exchange rate will hit the skies. Its a time for introspection. Lets see what we can source from within while importing only the most essential commodities not produced here. May be this will lead to a new breed of manufacturing entrepreneurs.

      Everyone in this country is into importation, its the laziest and easiest business investment to make and it adds no value to our nation. Lets be patriotic. i bet you, let every Nigerian refuse to travel out of the country for just one year, the exchange rate will crash so badly, even you would be surprised. For starters, shelve your planned summer trip with your family, that could be as much as $10,000 less pressure on the Naira, Now sit back and imagine the multiplier effect if another 10,000 people make the same choice.

      • AriaFada

        So your solution is to allow the little industry that Nigeria has to be destroyed – and Nigerians retrenched, by a perverse economic policy. When you next have a headache, try cutting your head off. I guarantee it will cure your headache!

        • tundemash

          Simply tell us what the devaluation of naira previously has done to the economy.
          The rebuild of the economy from the 16 years of rape would not be easy and Nigerians are prepared for that arduous task with a govt that is sincere where stealing is corruption and punishable.

          • AriaFada

            I will remember your moniker, please don’t change it because within a year, I’ll try to get back to you to see how government policy is playing out.

          • tundemash

            All you need do is click on my name and see how long i have been online and that date was when forums like PT and SaharaReporters joined disquss; i have been on SaharaReporters since the days of OBJ so do indeed come back.

    • musa aliyu

      I beg to disagree over the cable matter. Come to Kaduna and see if NOCACO, the best cable manufacturer in Africa cannot handle the job.

      • AriaFada

        I obtained the examples – including the cable matter, from the wall street journal. They wrote an article titled “In Nigeria, a Hunger for Dollars-but hold the fries” and those examples were given by Muda Yusuf, the director general of the Lagos Chamber of Commerce.
        Please google the article and see for yourself.

  • bigbang

    All this devaluation talk is boring. The Vice President should have talked about other issues. We have said no. How many times do we have to say no? We need long term investors, not speculators. The long term investors are still in Nigeria. We need more local investors. The pension fund can be used to invest in housing.

  • ‘cccole’

    @disqus_saR3RDCGDF:disqus

    Just as a wrong diagnosis will lead to
    complacency and fatality the refusal by Buhari’s fanatical supporters to concede
    the facts and figures showing that things are getting worse could lead to severe
    complications for all Nigerians. For one it will prevent good thinking of the right
    solutions. What am I saying? The lies-telling habit of the APC apparatchiks is
    being taken to a very dangerous point at this critical stage in history.

    • zaranaija

      Hahahahaha! But how else can his supporters defend Buhari without denial and lies-telling?

      There’s no other way – no achievement on anything since resuming office, nothing, just a mess!

      The only way to defend such fumbling government is to deny the evidence before everyone’s eyes.

  • FirecloudOFGOD

    PDP under GEJ was utterly destroyed, bringing to a close, an inglorious 16 years of PDP mismanagement of our economy, despite peak oil prices! Sanusi, as a former CBN head cannot boast of a singular achievement beyond scream conflicting figures of misappropriated fund in NNPC! His excesses in ridiculous spending and loudmouthedness, led to his suspension. He is out of government escaping unscathed. He has an emirate in need of modernization. That task is huge. I would have thought he should focus on how to surmount them rather than dabble in issues that have already been thrashed and those who do not understand the machinations and designs of these imperialistic world bodies supported by local and blissfully errant busy bodies like him, should just keep quiet!

    • Ahmad

      Point of correction please. It was former CBN governor Joseph Sanusi that was at the event not Sanusi Lamido Sanusi. It seems you are so much in a hurry to criticize SLS that you did not even bother to read the text. What a funny bigot.

      • FirecloudOFGOD

        Thanks, my apologies!

  • Man_Enough

    With the barrage of attacks ob buhari over the unpatriotic behind the scene manipulation of the naira in the black market, one can only imagine the torrent of vilification if the president asceeds to this unholy request by some quarters that we should use our own hands to slit our throats. Devaluation dividends are based on forcast consequuences beyond the control of government. For instance, they claim that if devaluation occurs, private enterprise will trive, but the question is what if the private sector fail to react as expected, can government force it?

    • Ogom

      The government is currently trying to “force” the private sector to invest in the Nigerian economy out of patriotism, in the face of uncertainty and crazy risk.

      Will THAT work?

      • plassy

        Honestly, i don’t think you should continue to talk on this issue. Most of those responding to you are doing so in defense of Mr President. Ordinarily, i’m not of a wanton devaluation school of thought; yet the question remains: should the CBN deplete all Nigeria’s external reserve to save the Naira or should the citizens directly share a bit of the pain? Who is benefitting from the parallel market? Is the naira not in fact devalued (by all means)? How long has the goverment projected to curb the difference.i.e 197/300 to 1, before things get really out of hands? Its a dicy situation and those calling for a bit of adjustment in the exchange rate cannot be stooges to the whites. Citizens should be prepared to share the pains directly too and work hard to import mostly what Nigeria does not have comparative advantage to produce.You make youR points but they cluster theirs in unattainable rendition.Even the VICE PRESIDENT SAID NOTHING VERY PLAUSIBLE, OTHER THAN THAT THE CBN HAS TO FOLLOW THE PRESIDENT’S SPEECH. And how much is the speech helping the economy? The issue i think should be, to what extent should the adjustment be made and by what timed term is the CBN likely to stabilse the naira; and what economic measures (certainly not by taxing bank account holders and releasing dollars to those who have no use for it other than to sell at black market rates)?

  • emmanuel anizoba

    Why do we shout sheepishly for a devaluation of the Naira without the attendant economic justification? Devaluation would make our exports comparatively attractive, but our only export is crude oil. And crude oil is priced in US dollars, not in our dear Naira. So, why bother to devalue the Naira when the economy gains nothing from such a futile exercise? While we are at it, why not ask the CBN to print more Naira and distribute to the DUNCES who can’t see beyond the tips of their snouts. Let’s talk more about how to promote local production of exportable goods and services, the generators of the much-desired foreign currency to drive imports. Cheers!

    • Ogom

      “Our only export is crude oil.. “?!

      Even if we accept your premise above, devaluing the Naira would mean the government would get N300 for every $ earned, not N97. Government revenues would go up, forecast budget deficit would be closed without borrowing, more N to spend on infrastructure, etc.

      Is this a good enough argument for you?

      • Yackson

        Ogom. I am sure you don’t really understand what devaluation means. A consumer country such as Nigeria has nothing to benefit from devaluation. When the naira is devalued, you may still be earning your N50,000 salary per month, but your purchasing power would have reduced such that your N50,000 has now reduced to N30,000 in value, for instance. Devaluation is tantamount to inflation and wages/salaries will not be increased to nullify the effect. The people preaching devaluation are paid agents of the “whites” who want to destroy our economy by all means. Trading a dollar at N350 at the parallel market is the product of greed and exploitation by mere looters and opportunists who have stolen and stock-piled our money in dollars at home and are now taking advantage of our vulnerability. Who are the people at the black-market that determine the exchange rate daily? The fall in value of the naira has nothing to do with demand. It is share wickedness that we must reject. It is a display of how lawless and corrupt we are.

        • Ogom

          “.. people preaching devaluation are paid agents of the whites..”

          “The fall in the value of the Naira has nothing to do with demand”.

          I rest my case.

          • yackson

            If you think it is all about increase in demand, tell me, what is new that people now buy with dollars that they were not buying before. this is a handwork of saboteurs who have failed us in the past and now want us to see them as lesser devils by trying to give the government bad name by all means

          • Ogom

            I didn’t say it was “ALL ABOUT increase in demand”, so I won’t bother defending that (made up) position.

            I was merely pointing out that you said “it has NOTHING TO DO with demand”, which cannot be true.

          • Samuel Okpolagha

            Ogom, you just stated what was on my mind with your arguments. Therefore do not expect everyone to understand the logic behind devaluing the Naira now, time will solve it for the unbelievers.

      • hiro hiro

        Please go back to school. How can consumption based economy like ours benefit from devaluation. Please apply yours senses.

        • Ogom

          This same dead argument.. and you say I’m the one that needs to “go back to school”?

          Let’s assume for a moment we ARE a “consumption based economy” as you said. Do you think it is helpful for CBN to ‘subsidise’ the consumption of imports by selling dollars at N197 instead of (closer to) N300, as it is currently doing?

          I put it to you that at (closer to) N300/$:

          1) We would consume less imported products.

          2) Relatively expensive imports will also mean locally produced substitutes will be more attractive to consumers AND

          3) Nigeria would therefore attract greater investment in productive capacity, both domestically and internationally. The logic is simple: if I can produce elsewhere and ship to Nigeria, why would I invest in plant there? If I can import products, why would I want to invest money (long term) in setting up a factory, with the attendant headache and risk?

          If you can, please try and refute my arguments, point by point and resist the urge to hurl childish insults.

      • emmanuel anizoba

        No, it is not! Because it is not based on facts. A premise is an assumption that may be factual or not. And my statement about crude oil being our only export is factual, unless we enjoy splitting hairs.

        • Ogom

          no hope.

          You should point out which part isn’t “based on facts” or just admit you don’t understand. No one will blame you

  • We kept fooling ourself. Nigeria should face reality