Vice President, Professor Yemi Osinbajo, in the presence of the current economic challenges facing the country, said on Wednesday that Nigeria is in the move to “substantially re-evaluate” its foreign exchange policy, adding that a “more flexible approach” to the currency should be expected “soon.”

He told investors, “We expect that with a more flexible policy, we will be able to attract more capital into the system and ease business.”

This was contained in his speech on Wednesday evening while addressing investors in a conference organised by Renaissance Capital in Lagos State.

He added, “We expect very soon we will see a more flexible approach to the currency.”

Nigeria’s Economy has come under heavy attack following the drop in the price of oil, which is the country’s main export.

However, the International Monetary Fund has advised those piloting the country’s economy to allow greater exchange rate flexibility as “the first line of defence.”

Despite the slowdown in foreign exchange earnings as a result of the fall in oil price, President Buhari has stood his ground that the naira should not be further devalued.

The president has repeatedly aired his support for the governor of the Central Bank, Godwin Emefiele’s maintaining of the naira’s official rate at 197-199 against the dollar since March 2015.

This, the Nigerian business community and foreign investors have frowned at, saying that the presidency is interfering in monetary policy, which according to them, is hurting the central bank’s independence.

Osinbajo continued, “We believe there must be some substantial re-evaluation of the foreign exchange policy especially with a view to increasing foreign exchange supply, encouraging capital importation and also being able to allow free flow of remittances…

“We expect that with a more flexible policy we will be able to attract more capital into the system and ease business…”

The vice president said that the executive is “not responsible for monetary policy” but added that he hoped the central bank would act soon with the policy changes he talked about.

Source: http://dailypost.ng/2016/05/12/nigeria-ready-to-devalue-naira-osinbajo/

Madness

I hope they won't come Back and reject or deny this news

is osinbajo m*d

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This Was Last Year:
There have been many rumours that the naira should be devalued against the U.S. dollar and other major foreign currencies. So, the eventual intervention by the Central Bank of Nigeria (CBN) has happened. CBN Governor Godwin Emefiele announced the devaluation of the naira.

Reverberating effects to economy are expected because of gamut of pronouncements like increasing Monetary Policy Rate (MPR) to 13 per cent, the adjustment of the Cash Reserve Ratio (CRR) for Private Sector Deposits and others. The naira devaluation will lead to a chain of reactions, many of which may not have the appropriate results, because the Nigerian economy mainly depends on oil.

The devalued naira will drive export of local products, which do not exist in the required volume for now, but will create an additional burden on the populace, the reason being that the cost of consumables, across the board, will escalate. As the direct consequence of the raise in the base lending rate the cost of loanable funds would have risen. In such case the development will be counterproductive, and against the thrust of the government’s touted plan to create jobs.

There is the expectation that the government’s revenue, in terms of naira will move up, because of the wide exchange rate disparity between the dollar and the local currency. But the point must be made that this expectation may be unrealisable of two variables – the falling oil prices and lower crude production aggregate. In the developed nation’s when currencies are devalued, it is to encourage exports, because the prices of local products serve as an incentive and a toast for foreign buyers. In the process, they earn foreign exchange, increase production and create additional jobs.

Unfortunately, that is not the position with Nigeria. Is there any escape-route? Certainly, but the question remains if Nigerians have been sufficiently sensitised to brace for this situation.
Source: http://www.naij.com/332430-naira-devaluation-effects-for-nigeria-and-nigerians.html

This rogue government must go! Enough of the hypocrisy!

Useless goverment

Dear OP, how is re-evaluate same as devalue?

I wouldn't have blamed you is this was on a broadcast, would have assumed you didn't get his accent...but this is on print!!!

The most idiotic & hypocritical government in the history of Nigeria.Guess we've seen it all? Power-hungry but no direction as regards the acquired power.Taking the fate of over 170 million people via trial by error.May it never be well with who or what APC represents.