₦airaland Forum

The Central Bank of Nigeria (CBN) yesterday
dismissed the call for further devaluation by
the Emir of Kano, and immediate past
Governor of the bank, Mallam Muhammad
Sanusi II, saying there would be no further
devaluation of the naira.
Sanusi on Friday had faulted the decision of
the CBN and the federal government not to
further devalue the naira, and also to retain
fuel subsidy.
He said, “it is wrong to continue with the
fuel subsidy. It is wrong to continue to
pretend that you can keep the naira at a
certain level, when the price of oil is falling,
without depleting your reserves. You have
to make a choice.”
But CBN Deputy Governor, Corporate Services
Directorate, Mr. Adebayo Adelabu, yesterday,
while addressing journalists in Lagos, at the
sidelines of the Investiture of the Chartered
Institute of Bankers of Nigeria (CIBN),
responded to Sanusi’s comment saying, “We
are all aware of the CBN’s official position on
this, that there will not be any further
devaluation of the naira, and this has been
communicated.”
“We have made the official position known
to the public. There could be comments
from various quarters of the economy but
we have made our official position known”,
he said.
CIBN backs CBN
The position of the CBN was also supported
by the Chartered Institute of Bankers of
Nigeria (CIBN). Commenting on the calls for
further devaluation of the naira, CIBN
President, Otunba Adebola Osibogun, said,
“The CBN itself is a member of the institute;
off course they consult with us, we work
together, even though they take the
decision, so whatever the CBN decides, the
institute always support.”
LCCI backs Sanusi
But the Lagos Chamber of Commerce and
Industry, supported Sanusi’s position, saying
there is need to adjust the exchange rate in
line with current realities.
In a telephone interview with Vanguard,
Director-General of LCCI, Mr. Muda Yusuf,
said, “We have to situate our policies within
the context of current realities.
The reality for now is that the current
exchange rate policy is not sustainable. That
is why we have all the crises we have been
having in the foreign exchange market.
“I think it is a good advice that we should
adjust, I won’t call it devaluation, adjustment
of the exchange rate in line with current
realities.
That will make it easier to manage the
current crises that we have. The current
approach of the CBN is even creating more
problems, than it is even solving. I don’t
even believe that is the way we should go”.
Diversifying the economy a must-CBN
Speaking on the theme of the CIBN
Investiture, “Diversifying the Revenue base
of Nigeria economy, the CBN Deputy
Governor, Adelabu said though Nigeria
missed the opportunity to diversify the
economy when the crude oil prices where
above $100 per barrel, doing so has become
a must in view of the decline in crude oil
prices and revenue.
He said, “The dwindling oil prices, reduction
in volume of crude oil production are
affecting us, with revenue nose diving,
because we relied so much on crude oil. We
lost the opportunity to diversify between
2009 and 2014 because we had relative
stability in exchange rate, and oil prices
went up as high as $110.
“We should have diversified in the period of
boom. Now we don’t need anybody to teach
us that we have to look at other areas of
revenue. This is a challenge to everybody
especially to the banking industry.
“Banks need to look at other sectors in
terms of lending. Fortunately we are blessed
with almost every resource on the earth.
Agriculture is a sector we must focus on. We
have lots and lots of solid mineral”
resources; and we should focus on
developing them. Most importantly, we have
to patronise local products.
Every Nigerian should deemphasise
consumption of imported goods, because
by doing so, we are helping other countries.
We should all patronise locally made goods.”

kaorama:
Sanusikniws nothing about naira

kossyablaze:
Can somebody shout skiborobo!

Ebubeslym:
hmmmmmmmm

kossyablaze:
lol wetin?

kaorama:
Sanusi's intention is to set up the CBN governor for failure and then turn around to sk for his sack. This is not about cows and rams, but a question tough economic policies to keep the eonomy afloat. Sanusi's suggestion is a lazy way around the lingering economic challenges. Just like parents obting to eat one their sons to quench hunger.