CBN: Naira Will Be Stabilised In 2016

The Central Bank of Nigeria (CBN) has vowed to evolve additional measures to boost the Nigerian economy and stabilise the naira. 

The position of the apex bank was made known by its governor, Godwin Emiefiele, who spoke during an interactive session with some senior journalists in Abuja.

Emiefiele however refused to give details of the measures and modalities for their implementation adding that doing so would be counter-productive and pre-emptive.

He explained that the economy was not as bad as being portrayed when compared with other economies in Africa, even as he advised importers to restrict their imports to raw materials and equipment rather than finished products and food to reduce the pressure on the nation’s scarce foreign exchange.

He said: “CBN will soon start a nationwide campaign to sensitise Nigerians to items excluded from importation.

“This is part of efforts to save more foreign exchange and stabilise the nation’s currency. The solution to free-fall of the naira is by controlling the demand for foreign currencies such as the dollar. If we are able to reduce importation, the demand for the dollar will fall automati­cally.’’

He also advised that Nigeria should take agriculture seriously and go back to the farm to produce what is needed.

He said: “Public servants should also engage in farming be­cause the only business public servants are allowed to engage in is farming. And you don’t need power to farm tomato, vegetables or fish.’’

Emefeile also blamed unscrupulous busi­nessmen who engaged in illicit activities for exerting pressure on the dollar and other currencies.

He said the CBN had ensured reasonable naira stability by keeping official exchange to the dollar be­tween N196 and N197.

“CBN does not have plenty dollars to sustain the bureau de change,’’ he stated.

Emiefiele insisted that the 22 per cent depreciation of the naira was reasonable when com­pared with other emerging economies adversely af­fected by global economic recession.

“Our situation is not as bad as people think. When you devalue, there must be structural adjustment. We have never followed up with structural adjustment.

‘’So, the approach we are adopting at the moment is that, having done a 22-per cent adjustment in the cur­rency, let us structurally ad­just our position.

‘’Let us say, look, stop importing rice; stop im­porting toothpick; stop im­porting tomato from South Africa; stop importing 20 million eggs daily from Af­rica,” he concluded.

Meanwhile, the Debt Management Office (DMO) has disclosed that the total debt profile of Nigeria presently stands at $64 billion.