VP Osinbanjo says devaluation of Naira is not an option

Vice president, Yemi Osinbajo yesterday said that further
devaluation of Naira was not an option to solve the
current economic down turn in the country.
He talked about the Federal government's plan to set up
a $25billion Infrastructural Fund which would be
sourced from local and international sources including
Nigeria’s Sovereign Wealth Fund.
the Ambassadors of Italy Mr. Fulvio Rustico and the
Canadian High Commissioner in Nigeria Mr. Perry John
Calderwood in his office at the presidential villa, Abuja.
He said:
“I don’t agree on devaluation and it is not that I
am doctrinaire about it. In the first place, it is not
a solution-we are not exporting significantly. And
the way things are, devaluation will not help the
local economy.
“What we need to do is to start spending more on
the economy and then things will ease up a bit.”
The Vice President disclosed that already other
sovereign wealth funds have indicated interest in the
fund which would be used to address the nation’s
decaying road, rail and power infrastructures.
He added:
"This is our approach to speeding up the
country’s infrastructural development.”
Osinbajo also said that the current foreign exchange
restriction is only a temporary measure to ensure that
“we don’t deplete our foreign exchange substantially,” at
a time when the prices of oil in the international market
is dropping.
He added that the restriction was for the benefit of the
country's economic stability.
He said:
“I am not sure devaluation is the issue, but how to
ensure foreign direct investment which is more useful”,
he said.
The Vice President also reassured investors who already
have contracts and loan commitments that the federal
government would work with the Central Bank of Nigeria
to protect legitimate businesses from being affected by
the current foreign exchange restrictions.
Vanguard