CBN says devaluing Naira will escalate inflation

By Odunewu Segun

The Central Bank of Nigeria has replied those calling for further devaluation of the Naira, saying any devaluation would escalate inflation and worsen the economic situation in the country.

CBN Acting Director, Public Communications, Mr. Isaac Okorafor gave the explanations in Umuahia, Abia State during a sensitization forum on CBN intervention programmes for young entrepreneurs, farmers, traders, cooperative societies, and young school leavers.

According to him, those clamouring for the Naira to be devalued are not patriotic but only after their interests and that of their foreign partners. He insisted that the CBN would continue to stabilise the Naira and resist any policy that would make it go beyond the current exchange rate of less than N400 per US Dollar.

“We can’t float the Naira because it will escalate inflation. We can’t kill our people by pleasing foreigners. CBN has the responsibility to protect our people economically and we won’t introduce a policy that will inflict hardship on the people.”

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He called on Nigerians to patronise locally- made products and stop their penchant for foreign goods as a quick way to stimulate the economy and exit the current economic recession.

According to him, a lot of Nigerians still prefer imported products to their local counterparts, an attitude he said was the reason the Nigeria economy had continued to nose- dive.

He however, commended the efforts of some Nigerians and state governments who had keyed into the various CBN interventions especially in the sectors of agriculture and Small and Medium Enterprises (SMEs).

Okorafor specifically applauded rice farmers in Kebbi State who he said had justified CBN’s agric intervention as the state is now the highest rice producer in Nigeria.

He therefore, enjoined farmers, entrepreneurs and owners of SMEs to take advantage of the various CBN interventions in different sectors and better their living conditions and also create more jobs.

In her remarks, CBN Branch Manager in Abia State, Mrs. Veronica Akpan said over 10,000 farmers in the state had accessed the CBN agric credit scheme, adding that over N6.8 billion loan had been given out by banks in Abia to their customers based on various CBN packages.