Devaluation of Naira Not a Solution to Our Nation’s Current Economic Down Turn – VP Osinbajo

Vice President, Prof. Yemi Osinbajo yesterday said that further devaluation of Naira was not a solution to the current economic down turn in the country and therefore, the government would not devalue the currency.

He announced the federal government’s plan to set up a $25 billion Infrastructural Fund which would be sourced from local and international sources including Nigeria’s Sovereign Wealth Fund.

Osinbajo spoke when he received the Ambassador of Italy Mr. Fulvio Rustico and the Canadian High Commissioner in Nigeria Mr. Perry John Calderwood at his office.

“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,” Osinbajo said.

“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.

“This is our approach to speeding up the country’s infrastructural development.”

Osinbajo also restated that the current foreign exchange restriction is 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 is also to bring some stability to the country’s foreign reserves without which Foreign Direct Investment, FDI, might be affected.

He allayed the fears of investors who already have contracts and loan commitments, saying 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.