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Recession: EU advises Nigeria to devalue Naira

Naira

Naira

European Union (EU) official Fillippo Amato has advised the Federal Government to devalue the Naira as part of measures to tackle the economic recession.

Amato, Counsellor, Head of Trade and Economics Section of EU, made this known in an interview with the News Agency of Nigeria (NAN) on Monday

The EU official said that recession could not be addressed with traditional development tools.


He said the recession was a recent development which was due to a number of factors, including the fall in oil prices and resurgence of militancy in the Niger Delta.

“To come out of recession, the country has to take brave decisions, regardless of how unpopular they may be such as fully and effectively devaluing the Naira.

“Devaluing the Naira is a measure, which will finally reassure investors and attract new capitals to the country.

“At the same time, it will further reduce imports, thereby removing artificial forex restrictions, and removing any potential waste of scarce resources such as the fuel subsidy.

“Improving security (in the Northeast and Niger-delta) and ease of doing business are also key factors on which the government must urgently work to re-launch the economy,’’ he said.

Amato said that EU had been at the forefront of aid for trade support activities in Nigeria and ECOWAS.

He said the most important programme the EU was implementing in Nigeria with its partners – GIZ, DFID/Adam Smith International and UNIDO – was the Nigeria competitiveness Support Programme.

“The programme aims at improving the quality of Nigeria products to comply with international standards.

“The programme is providing capacity building to several Ministries, Departments and Agencies such as Ministry of Agriculture, Standards Organisation of Nigeria, Consumer Protection Council, Nigerian Customs Services and NADFAC.

“We support the trade institutions in the formulation and implementation of a sound trade policy (support to the Federal Minister of Industry, Trade & Investment, and Nigerian Customs Service).

“This is to improve the business environment, with pilot projects in Kano and Kaduna to improve the procedures for obtaining land titles, and business licences,’’ he said.

He said Nigeria also needed to take advantage of the devaluation of its currency by diversifying its sources of foreign exchange revenue and this mainly through boosting its non-oil exports.

Amato said that EU would increase its support to the country under the Economic Partnership Agreement (EPA) if ratified.

“EPA aims at boosting industrialisation and sustainable development of West Africa, both through improved (predictable, transparent and long-term) trade relations and through a development cooperation component.

“In addition, on Sept. 14, the EU has launched a European External Investment Plan which will further support private sector investments in the African continent, including Nigeria.

“The plan will support investments in the continent by providing targeted guarantees and ameliorating the investment climate and the overall policy environment in partner countries.

“The Plan will be implemented through the new European Fund for Sustainable Development, with EU funds totalling 3.35 billion Euros until 2020.

“The EU Funds are expected to mobilise up to 44 billion Euros additional investments,’’ the official said.

He, however, advised Nigeria to take into consideration all the opportunities the EPA would offer to Nigeria and communicate them to all interested stakeholders.

“The role of the government is also to reassure all stakeholders that there is no reason to be worried in the course of implementation of the EPA.

“The government will use all instruments offered by the EPA to ensure it will achieve its objective to promote industrialisation and development of Nigeria and West Africa.


“The EU will do its part to ensure these objectives are achieved,” he said.

According to him, in a globalised world no country or regional community can ignore the destiny of its neighbours.

“The EU, in particular, due to its historic ties and geographic proximity to West Africa, has a strong interest in promoting and supporting West Africa’s development, well-being, prosperity and stability.’’




  • Tantolorun

    Wetin concern you. Repatriate the stolen funds in your possession and Naija go survive.

    • amador kester

      Greater monumental funds are stashed away in mid east and far eastern nations,dubai,qatar etc. Not that the west should hold on to the loot on their shores but a systematic approach to this anticorruption war should evolve in a comprehensuve and multitasking approach. There is a lot of sporadic approach to a critical issue. I could as lief study the theory of random numbers

    • Basil Ogbanufe

      The burden of proof is on you. Prove the funds were stolen instead of making noise

  • Musa

    The Trademark office is under Fed Min. of Trade & Industry, where it takes 3-4 years to register a trademark compared to average of 6 months in the USA, for example.This exemplifies a major problem facing the country that the government often is an impediment to economic progress primarily due to parochialism. A backward section does not want a progressive section to get ahead. This is dumb because capitalism is based on the concept of the progress of one for the good of many.

    • Musa

      Lack of trademark registration limits a manufacturer’s ability to market its products widely without risking loss of IP (intellectual property)

  • Basil Ogbanufe

    The floating of the Naira will help it attain its true value. What government needs to do now is sell national assets like NNPC, NLNG, Kaduna refinery, NTA, Radio Nigeria, etc to Nigerians through the NSE (Nigeria Stock Exchange) by way of IPO (initial public offer).

    Government cannot continue being regulator and operator/manage of the economy at the same time. This is corruption and encouraging corruption. Government should focus solely on regulation of the economy. It should hands off the management of the economy for Nigerians through the NSE by way of IPO. These companies becoming public quoted companies will lead Nigeria towards self sufficiency.

  • DAPOSHOGBOLA

    THE NIT WITS AT THE IMF AND THE EU SHOULD SHUT UP AND LEAVE US TO SORT OUR ISSUES OUR WAY; THEIR FOREBEARS TOOK OUR PEOPLE AS SLAVES STOLE OUR AGRIC AND MINERAL RESOURCES TO BUILD THEIR INDUSTRIES
    NOW THEY ARE SCARED WE WANT TO BE AN INDUSTRIAL HUB NOT A CONSUMING HUB
    THE CURRENT RECESSION IS ARTIFICIAL; BROUGHT ABOUT BY THE RECKLESS CONDUCT OF BARRACK OBAMA WHO CANCELLED CRUDE OIL EXPORT CONTRACTS BETWEEN NIGERIA AND THE USA AND PROCEEDED TO COMPETE WITH NIGERIA’S CRUDE
    THE IMF HAS OUTLIVED ITS USEFULNESSA
    NIGERIA MUST COLLABORATE WITH OTHER MEMBERS OF G77
    AfDB, ADB ASIAN AND MIDDLE EAST COUNTRIES TO FORM A NEW GLOBAL BODY THAT WOULD CHANNEL RESOURCES TO HARNESS MINERAL AND AGRIC RESOURCES
    ADD VALUE LOCALLY
    SATURATE LOCAL MARKETS
    THEN EXPORT
    WE DO NOT NEED ADVICE FROM EU/USA/IMF /FRANCE TO MOVE OUR COUNTRY FORWARD
    WE ARE A SOVEREIGN
    NOT
    A COLONY OF THE EU
    ENOUGH OF THEIR INSULTS
    STEVE DAPO SHOGBOLA
    LAGOS, NIGERIA

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