Naira devaluation will do more economic harm than good, argues Conference of Nigerian Political Parties (CNPP) National Publicity Secretary, Osita Okechukwu, in his commendation for President Muhammadu Buhari for taking the stance.
Buhari insisted during his recent visit to France that his government would not allow any further devaluation of the naira.
Okechukwu applauded him, saying stabilisation of the naira through tighter restrictions on access to foreign exchange (forex) will conserve foreign reserves and hence stem round tripping, speculation, and illicit financial transactions by rent seekers.
CNPP also expressed support for other economic policies like the Single Treasury Account (TSA), ban on commercial banks to stop accepting foreign currency cash deposits and to pay dollar purchase within 48 hours in advance, and exclusion of 41 items from the official forex market.
“Retreat of the state as is being advocated by JP Morgan and portfolio speculators, in the midst of scarce foreign exchange will create fierce struggle for the few dollars in the marketplace, and dangerously depreciate the naira, especially when oil remains our main foreign exchange earner,” the party added.
“Which products will the devaluation of the naira further to say N500 per $1 induce its export? None.
“For as Sam Aluko said, ‘the Nigerian economy is not yet modernised or capitalised economy, even though the ongoing reform programs try to run a capitalist economy, without capital.
‘“A largely informal economy does not require reform, it requires tendering, nurturing and propelling by the state.
“It should not be left alone to the whims and caprices of a nebulous philosophy of free market, free enterprise and global competition.’”
CNPP urged Buhari to resist the pressure from captains of industry and foreign exchange predators, most of whom have no functional factories, who created two countries of the few in their tiny island of prosperity and the many in their ocean of misery in one country.
