Federal Government Set to Officially Devalue Naira - VP Osinbajo Reveals

In the presence of the current economic challenges facing the country, the vice president, has said that Nigeria is in the move to substantially re-evaluate its foreign exchange policy.

VP Yemi Osinbajo

In the presence of the current economic challenges facing the country, the vice president, has said that Nigeria is in the move to substantially re-evaluate its foreign exchange policy. 

While addressing investors in a conference organised by Renaissance Capital in Lagos State, Vice President, Professor Yemi Osinbajo, in his speech on Wednesday evening, said that in the presence of the current economic challenges facing the country, that the President Buhari-led federal government is in the move to'substantially re-evaluate' its foreign exchange policy.

 

The vice president who added that a 'more flexible approach' to the currency should be 'expected soon', told investors, "We expect that with a more flexible policy, we will be able to attract more capital into the system and ease business." He added, "We expect very soon we will see a more flexible approach to the currency."

 

Nigeria’s Economy has come under heavy attack following the drop in the price of oil, which is the country’s main export. However, the International Monetary Fund has advised those piloting the country’s economy to allow greater exchange rate flexibility as “the first line of defence.”

 

Despite the slowdown in foreign exchange earnings as a result of the fall in oil price, President Buhari has stood his ground that the naira should not be further devalued.

 

Osinbajo continued, "We believe there must be some substantial re-evaluation of the foreign exchange policy especially with a view to increasing foreign exchange supply, encouraging capital importation and also being able to allow free flow of remittances.

 

"We expect that with a more flexible policy we will be able to attract more capital into the system and ease business."

 

The vice president said that the executive is 'not responsible for monetary policy' but added that he hoped the central bank would act soon with the policy changes he talked about.