LAGOS, Nigeria — The IMF is pressing Nigeria to further devalue its Naira currency in the midst of instability over the political and economic outlook for Africa’s biggest oil producer and the economy.
Experts said there is a disappointment from President Muhammadu Buhari’s long anticipated Cabinet list — five months really taking long and still not completed— This includes no financial guide to much needed change.
“There’s no economist on the (Cabinet) list that can suggest to the government ways to improve revenue generation and how to run the economy,” said Garba Kurfi, managing executive of APT Securities and Funds.
The Naira has lost 25 percent of its value in the previous year and the share trading system plummeted by 20 percent a year ago and 14 percent this year in the wake of political instability and divided costs for oil that provides most government revenues.
Nigeria’s Central Bank devalued the naira by 8 percent in November and after that settled the official exchange rate at an even lower 198 to the dollar, however, it’s offered at 222 at black markets.
Not able to stem the slide, the Central Bank has defended the Naira by restricting access to foreign currency and banning an extensive list of importation in the country.
“It’s like digging a hole to fill up another hole,” said a report on Nigeria’s huhuonline news site. The restrictions are “entirely inconvenient,” said the International Monetary Fund’s Africa executive, Antoinette Sayeh.
They “are as of now making it harder for the normal people to purchase milk,” she said at the IMF yearly meeting that ended in Peru this week, as reported by the organization’s website.
She called for an audit for the restrictions and for officials to “allow the exchange rate to keep on adjusting”.
Looking at the situation of the Naira in Nigeria today, do you think devaluing Naira more will stop the recession and inflation Nigerians are facing now? Leave your comment below. Sharing is love, don’t forget to share with your friends on Facebook, Twitter and Google+