ADVERTISEMENT

President reportedly succumbs to IMF pressure, approves devaluation of naira

Report said that the naira would be pegged at N290 to one dollar, with the current official rate being about N200 to a dollar.

Mohammadu Buhari

According to SaharaReporters, the President agreed to demands by the International Monetary Fund (IMF) that he significantly devalue the Nigerian currency.

The development follows the shocking announcement of the increase in fuel price - from N86.5 per litre to N145 - which was effective from Thursday, May 12, 2016.

Sources told the online news platform that the naira would be pegged at N290 to one dollar, with the current official rate being about N200 to a dollar.

ADVERTISEMENT

Buhari and his economic team were said to have taken the decision to accept the IMF’s terms so that the government can access funds in order to bridge a critical shortfall in revenue occasioned by a drastic decline in oil revenues.

Quoting a government insider, the online publication claimed that Nigeria could receive as much as $3 billion in credit facilities from the IMF.

“The truth is that Nigeria cannot operate without sourcing credit from the IMF. And the IMF was adamant that we must devalue before they can discuss extending credit to us,” an economic adviser to Buhari told SaharaReporters.

It was reported that the decsion to devalue the naira was taken without the input of the Governor of the Central Bank of Nigeria (CBN), Godwin Emefiele.

“Some of us here [the CBN] are not opposed to devaluation, given our country’s present circumstances,” a CBN official, who confirmed that executives of apex bank were kept in the dark about the discussions that led to the devaluation of naira, said.

ADVERTISEMENT

According to another source in the know, the naira has been weakened in the parallel market, where it now sells at N360 per dollar.

“The government cannot continue to operate under the illusion that the naira is stronger than it is. The only problem is that we did not start early enough to admit to Nigerians how bad the financial outlook was,” the source said.

The IMF had long indicated its readiness to support Nigeria’s economy with credit liquidity but insisted on Nigeria devaluing its currency.

But Buhari disagreed, insisting on several occasions - before and after his election, that he would never devalue the naira.

JOIN OUR PULSE COMMUNITY!

Unblock notifications in browser settings.
ADVERTISEMENT

Eyewitness? Submit your stories now via social or:

Email: eyewitness@pulse.ng

Recommended articles

Ezekwesili vows to continue singing abandoned national anthem

Ezekwesili vows to continue singing abandoned national anthem

Tinubu declares free ride of Abuja light rail until December

Tinubu declares free ride of Abuja light rail until December

CSO to quiz INEC chairman live on electoral reform ahead of 2027 polls

CSO to quiz INEC chairman live on electoral reform ahead of 2027 polls

'I will never sing it' - Nigerians react to Tinubu's approval of old national anthem

'I will never sing it' - Nigerians react to Tinubu's approval of old national anthem

Kano South Elders urge Yusuf to reverse Kano Emirate Law for regional progress

Kano South Elders urge Yusuf to reverse Kano Emirate Law for regional progress

Fintiri approves ₦2.3bn for court renovation, to enhance justice delivery

Fintiri approves ₦2.3bn for court renovation, to enhance justice delivery

Bricklayer burglarises late herbalist's home, steals 'get-rich' soap, valuables

Bricklayer burglarises late herbalist's home, steals 'get-rich' soap, valuables

VIDEO: 'Thank you for bringing back the anthem we grew up with' - Speaker to Tinubu

VIDEO: 'Thank you for bringing back the anthem we grew up with' - Speaker to Tinubu

Fellow Nigerians, here are the lyrics of the reinstated national anthem

Fellow Nigerians, here are the lyrics of the reinstated national anthem

Pulse Sports

Olanrewaju Kayode Net Worth: Profile, Age, Salary, Wife, House, Cars, How Rich is he in 2024?

Olanrewaju Kayode Net Worth: Profile, Age, Salary, Wife, House, Cars, How Rich is he in 2024?

Naija Stars Abroad: Maduka Okoye justifies Finidi George's call, forgotten Super Eagles star dims red-hot Ademola Lookman, Osimhen

Naija Stars Abroad: Maduka Okoye justifies Finidi George's call, forgotten Super Eagles star dims red-hot Ademola Lookman, Osimhen

No space for Lookman, Osimhen as only two Africans make Forbes’ Top 50 highest-paid athletes

No space for Lookman, Osimhen as only two Africans make Forbes’ Top 50 highest-paid athletes

Lookman frontrunner for NFF Player of the Year after historic Europa League heroics

Lookman frontrunner for NFF Player of the Year after historic Europa League heroics

ADVERTISEMENT
ADVERTISEMENT