16 October 2019: It is hight time that Nigeria unifies its exchange rates. The International Monetary Fund (IMF) strongly feels that the exchange restrictions is warping the public and private sector decisions and hindering investments.
In a recent press conference at the IMF Annual Meeting in Washington DC Oya Celasun, IMF’s Divisional Chief, Research Department stated that the modest upturn in economic growth this year for Nigeria, was mainly due to agricultural production, but still wasn't enough to lift the country’s per capita growth.
The IMF’s team recently visited Nigeria, and devised a comprehensive package of reforms for Nigeria, to aid the GDP growth. Mr Celasun also commented on the measures, stating IMF had suggested a stronger non-oil revenue mobilisation.
He said “For some time now, we have been emphasising the need for a comprehensive package to lift growth.
“One element of that will have to be stronger non-oil revenue mobilisation. Nigeria has one of the lowest rates of revenue in the world, which was hit hard by the drop in oil prices.
“That is essential for the country to be able to spend more on priorities, such as social safety net and infrastructure. Other areas are the need for tight monetary policy and a simpler unified exchange rate system. Foreign exchange restrictions have also been distorting public and private sector decisions and holding back investment.”
According to the Bretton Woods Institution, the extreme dependence on oil prices and prospects is not viable, and there is an urgent requirement for structural measures to increase per capita growth.
Despite these strong statements from international experts and analysts, CBN continues to defend the multiple exchange rates, claiming the multiple FX policy is backed by the CBN Act and favours the poor.
Although officially Naira is pegged at N 307 per dollar, the I&E- Investors’ & Exporters recognises the rate of N362.32 per dollar while the Bureau De Change has pegged it at N360 per dollar, Black market sells it at N 360 per dollar.
Reporting for EasyKobo on Wednesday , 16 October 2019 in Lagos, Nigeria