Noah Ebije, Kaduna
The Federal Government has been advised to ignore calls from some quarters that the nation’s currency should be devalued in a swift response to the current oil price crash in the global market, believing that the situation will soon fizzle out.
It said instead, government should instruct the Governor of Central Bank of Nigeria, (CBN), Mr. Godwin Emefiele, to adopt diplomatic and sustainable economic policy that will support the nation during the ongoing oil price crash period.
This was contained in a statement by economic expert team known as The Social Integrity Network, (SINET).
National coordinator of the group, Mallam Ibrahim Isaah, described the global oil price crash as a temporary scenario orchestrated by the coronavirus disease outbreak worldwide.
“There is a widespread prediction that the falling reserves might force the CBN’s hands to depreciate the naira. It is pertinent to put on record that many factories have shut down operations while travel ban imposition has affected airlines operations, thereby reducing crude oil’s demand for industrial and operational purposes globally.
“According to recent global reports, China government has directed all her local manufacturers to resume operations with a view to matching up global production deficit geometrically. The Federal Government has in the past months made remarkable impact by taking bold steps towards ensuring the crash of Treasury Bill rate which has further enable the nation to reserve the huge sum of fund being used to settle Treasury Bill investors.
“The strict border closure policy implementation has also assisted and prevented us from losing our scarce foreign reserve to smuggling of petroleum products across the borders which is gradually complimenting the economy.
“Although, there is speculation that some people are on the verge of hording dollar in anticipation of Naira devaluation but our stance is for the Federal Government to remain resolute and committed to the reality that the oil price will soon appreciate with very high volume demand.”
The group warned that government should beware of economic sabotage in order to overcome the economic meltdown.
The group, however, commended President Muhammadu Buhari, his economic team as well as the CBN governor for the strong commitments towards ensuring rapid economic growth and prosperity for the nation amid several odds and global business woes.