President Buhari denounces devaluation of Naira

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President Muhammadu Buhari said,on Wednesday, in Paris, France, that he opposed a further weakening of the naira and openly
endorsed the Central Bank of Nigeria, CBN’s policy of restricting foreign-exchange trading.

The President, who was answering questions in an interview with France 24 broadcast, said:
“I do not think it is healthy for us to get the naira devalued. The Central Bank is providing ample foreign exchange to essential services,
industries.”

CBN has been under pressure from foreign investors to further devalue the naira. Nigeria had, last year, devalued the naira to N197 to the
dollar from N160. The naira was further adjusted slightly in July to N199 to the dollar. As a result
of the continued pressure on the naira, CBN introduced some measures to curb the excess
demand for foreign exchange.

This, however, did not go down well with some of the foreign investors. After the crash of oil prices last year, the CBN Governor, Mr. Godwin Emefiele, reacted to the naira’s drop to a record low in February by extending trading curbs and introducing bans on purchases of dollars by 41 items, which CBN said cannot access foreign exchange from the Nigeria market.

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