Buhari made a good decision on Naira devaluation – CNPP

In opposition to what others think is the best for Nigeria, President Muhammadu Buhari decided against devaluing the naira in the face of having to make drastic decision on the future of naira.

At the end of the day, the Conference of Nigerian Political Parties (CNPP) joined other Nigerians in commending President Muhammadu Buhari for opposing a further devaluation of the Naira.

CNPP, in a statement by its National Publicity Secretary, Mr. Osita Okechukwu commended President Buhari for putting in place measures that are believed to have stabilised the Naira.

He said he commending Mr. President because stabilization of the Naira through tighter restrictions on access to foreign exchange will conserve foreign reserves, which is the common wealth, and hence stem round tripping, speculation and illicit financial transactions by rent seekers.

According to him, stakeholders agree that pro-people economic policies like the Single Treasury Account, ban on commercial banks to stop accepting foreign currency cash deposits and to pay dollar purchase within 48 hours in advance and exclusion of 41 items access to official foreign exchange market will hurt in the short run; however, state intervention in the midst of the dwindling oil revenue will pay off in the medium and long run.

The CNPP has the view that retreat of the state as is being advocated by JP Morgan and portfolio speculators, in the midst of scarce foreign exchange will create fierce struggle for few dollars in the marketplace and dangerously depreciate the Naira, especially when oil remains the main foreign exchange earner.

Mr. Okechukwu asked: “To be candid, which products will the devaluation of the Naira further to say N500 per $1 induce its export? None, for as Professor Sam Aluko of blessed memory said, ‘The Nigerian economy is not yet modernized or capitalized economy, even though the ongoing reform programmes try to run a capitalist economy, without capital… A largely informal economy does not require reform, it requires tendering, nurturing and propelling by the State. It should not be left alone to the whims and caprices of a nebulous philosophy of free market, free enterprise and global competition.”

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