Post by Honorebu on Feb 28, 2016 15:23:09 GMT
– Vice President, Yemi Osinbajo has confirmed that he remains against devaluing the Naira. – Speaking during a debate in Lagos, he also said that the north-east will be de-mined before refugees return. – He named Biafra agitation, pipeline vandalism and Fulani conflict as security threats along with Boko Haram.
The Vice President, Yemi Osinbajo, has reaffirmed that the Naira will not be devalued during a debate in Lagos. However his opponent, former Central Bank of Nigeria (CBN) governor Joseph Sanusi, replied that delaying devaluation would be a disaster for the country. The two public figures were speaking at a hall meeting debate in Victoria Garden City (VGC) on the Lekki-Epe axis of Lagos. During the debate, Osinbajo said the CBN will operate in line with the speech delivered by President Muhammadu Buhari on strong monetary policies and avoiding devaluation.
He said that the foreign exchange policy of the government is to stop unnecessary consumption of imported goods and promote local manufacturing. However, Sanusi, a VGC resident, advised the government to either devalue the Naira or stop the confusion between the official and parallel market exchange rates. He said that allowing an official rate of N97 per dollar while one dollar sells for N300 on the parallel market is ludicrous and distracting. “The Naira is already devalued and the government not accepting it is postponing the evil day,’’ Sanusi said.
Osinbajo replied that the government met a falling revenue profile in May 2015 when it came into power, which was down by about 70% compared to the same period of the preceding year. He said that in spite of the high cost of $22 to produce a barrel of crude oil, now selling at about $33 dollars, no fewer than 38% of the foreign reserve was spent on importing petroleum products under the last government. He also said the previous administration spent N20 billion on food imports every year, which reduced the nation’s foreign reserve drastically from $40 billion to $25 billion.
As a result, he said the present administration is bent on diversifying the economy from crude oil to agriculture and solid minerals production. Ex-CBN head Sanusi believes not devaluing the Naira would be a disaster The vice president further said the administration was targeting 2018 for complete reliance on refined petroleum products. He added that the petrochemical industry, railways, and provision of other infrastructure is the priority of the federal government. Going on to speak about the Boko Haram insurgency, Osinbajo said the terror force has been degraded as a military force, despite the ongoing suicide bombing campaign. “This is a challenge we must tackle going forward but the other challenge is the over two million people displaced by insurgency who need resettlement,’’ he said.
He said the idea must be to re-settle refugees and internally displaced persons as soon as possible after the whole north-east has been demined, adding that the Indigenous People of Biafra (IPOB), pipeline vandalism in the South-South and the Fulani also constitute threats. The debate then moved on to corruption, with Osinbajo describing the problem as a critical issue. “The whole system, both public and private, is replete with corruption which has become the rule rather than the exception.” “Unless we seriously fight corruption through a systematic rebirth of our public system, the future of the country is in grave danger,’’ Osinbajo said. After the debate, the Chairman of the VGC Residents Association Olusegun Ladega requested Osinbajo to intervene in the flooding of the estate caused by the lack of ancillary drainage on the Lekki-Epe Expressway.
Source:Naij.com
The Vice President, Yemi Osinbajo, has reaffirmed that the Naira will not be devalued during a debate in Lagos. However his opponent, former Central Bank of Nigeria (CBN) governor Joseph Sanusi, replied that delaying devaluation would be a disaster for the country. The two public figures were speaking at a hall meeting debate in Victoria Garden City (VGC) on the Lekki-Epe axis of Lagos. During the debate, Osinbajo said the CBN will operate in line with the speech delivered by President Muhammadu Buhari on strong monetary policies and avoiding devaluation.
He said that the foreign exchange policy of the government is to stop unnecessary consumption of imported goods and promote local manufacturing. However, Sanusi, a VGC resident, advised the government to either devalue the Naira or stop the confusion between the official and parallel market exchange rates. He said that allowing an official rate of N97 per dollar while one dollar sells for N300 on the parallel market is ludicrous and distracting. “The Naira is already devalued and the government not accepting it is postponing the evil day,’’ Sanusi said.
Osinbajo replied that the government met a falling revenue profile in May 2015 when it came into power, which was down by about 70% compared to the same period of the preceding year. He said that in spite of the high cost of $22 to produce a barrel of crude oil, now selling at about $33 dollars, no fewer than 38% of the foreign reserve was spent on importing petroleum products under the last government. He also said the previous administration spent N20 billion on food imports every year, which reduced the nation’s foreign reserve drastically from $40 billion to $25 billion.
As a result, he said the present administration is bent on diversifying the economy from crude oil to agriculture and solid minerals production. Ex-CBN head Sanusi believes not devaluing the Naira would be a disaster The vice president further said the administration was targeting 2018 for complete reliance on refined petroleum products. He added that the petrochemical industry, railways, and provision of other infrastructure is the priority of the federal government. Going on to speak about the Boko Haram insurgency, Osinbajo said the terror force has been degraded as a military force, despite the ongoing suicide bombing campaign. “This is a challenge we must tackle going forward but the other challenge is the over two million people displaced by insurgency who need resettlement,’’ he said.
He said the idea must be to re-settle refugees and internally displaced persons as soon as possible after the whole north-east has been demined, adding that the Indigenous People of Biafra (IPOB), pipeline vandalism in the South-South and the Fulani also constitute threats. The debate then moved on to corruption, with Osinbajo describing the problem as a critical issue. “The whole system, both public and private, is replete with corruption which has become the rule rather than the exception.” “Unless we seriously fight corruption through a systematic rebirth of our public system, the future of the country is in grave danger,’’ Osinbajo said. After the debate, the Chairman of the VGC Residents Association Olusegun Ladega requested Osinbajo to intervene in the flooding of the estate caused by the lack of ancillary drainage on the Lekki-Epe Expressway.
Source:Naij.com