Last updated on September 20th, 2020 at 08:55 pm | This article was published at an earlier date and has been updated with new information.
Again, Buhari rejects devaluation of Naira says foreign exchange business had become a scam to drain the Nigeria economy.
President Muhammadu Buhari declared late Wednesday in Nairobi, Kenya, that he was yet to be convinced that Nigeria and its people will derive any tangible benefit from an official devaluation of the Naira.
Speaking at an interactive meeting with Nigerians living in Kenya, President Buhari maintained that while export-driven economies could benefit from devaluation of their currencies, devaluation will only result in further inflation and hardship for the poor and middle classes in Nigeriaâ€™s import-dependent economy.
The president added that he had no intention of bringing further hardship on the countryâ€™s poor who, he said, have suffered enough already.
Likening devaluing the Naira to having it â€œkilledâ€, President Buhari said that proponents of devaluation will have to work much harder to convince him that ordinary Nigerians will gain anything from it.
The president also rejected suggestions that the Central Bank of Nigeria should resume the sale of foreign exchange to Bureaux de Change (BDCs), saying that the Bureau de Change business had become a scam and a drain on the economy.
â€œWe had just 74 of the bureaux in 2005, now they have grown to about 2,800,â€ President Buhari noted.
He alleged that some bank and government officials used surrogates to run the BDCs andÂ prosper at public expense by obtaining foreign exchange from government at official rates and selling it at much higher rates.
â€œWe will use our foreign exchange for industry, spare parts and the development of needed infrastructure.
â€œWe donâ€™t have the Dollars to give to the BDCs. Let them go and get it from wherever they can, other than the Central Bank,â€ President Buhari told the gathering.
The president reaffirmed his conviction that about a third of petroleum subsidy payments under the previous administration was bogus.
â€œThey just stamped papers and collected our foreign exchange,â€ he said.
The president appealed to Nigerians studying abroad to bear with his administration as it strives to address the challenges they are facing as a result of new foreign exchange measures.
He said that he was optimistic that the Nigerian economy will stabilize soon with the efficient implementation of measures and policies that have been introduced by his administration.