The former Commonwealth secretary-general, Chief Emeka Anyaoku, stated that the official devaluation of the naira will inevitably produce a further rise in inflation to the detriment of all Nigerians. He also called for an immediate restructuring of the country’s present governance architecture by adopting true federalism.
“An incontrovertible fact is that with the current level of the country’s dependence on imported goods resulting in a monthly import bill that is about four times the value of its main export (crude oil) that is traded in dollars, official devaluation of the naira via-a-vis the dollar will inevitably produce a further rise in inflation to the detriment of all of us, especially the masses.
“Besides, in such circumstances, devaluation will lead to an unacceptable drain in the country’s external reserves that is already worryingly depleted,” he said.
“The crux of the challenge we face with the current world price for crude oil, is to devise policies for reducing the level of the county’s dependence on imported goods while in the meantime, allowing the Naira to float in the non-official currency markets with adequate safeguards being effectively enforced by the government against round-tripping in the management of our foreign exchange.
He said that restructuring the country will go a long way in enabling the country to achieve the speedier development and political stability that would more effectively eliminate the causes of the centrifugal forces existing in Nigeria.
