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Devalue the Naira to Get out of Recession – EU Official



Man Holding Money - Naira | Nsoedo Frank | Union (EU) official Fillippo Amato, in an interview with the News Agency of Nigeria (NAN) on Monday, 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, 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 September 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,” he added.

The News Agency of Nigeria (NAN) was established by the Federal Government of Nigeria in May 1976 to gather and distribute news on Nigeria and cover events of interest to Nigeria at the international level for the benefit of the Nigerian Media and the Public.


  1. Weezy

    October 3, 2016 at 9:51 pm

    I wish NAN would go beyond just reporting what someone said to actual analysis. Didn’t the government already devalue the naira? What does the EU’s statement mean. Come on people.

    • CovertNigerian

      October 4, 2016 at 2:23 am

      The gap between the official and black market rates is indicative of the fact that something is wrong with the current exchange rate. It will be painful, and sadly our politicians will make matters worse while trying to avoid it, but I suspect it will be inevitable.

      More than anything else, investors desire stability and if devaluation is what it’ll take to get our economy some stability then we’re probably better off going down that road sooner than later.

  2. Mj

    October 3, 2016 at 9:52 pm

    Devalue d naire to wat again ehnnn wat a nation

  3. Marlvina

    October 3, 2016 at 10:39 pm

    Excuse you?? Devalue which Naira? You mean the one that’s already devalued? or there’s some other Naira I just don’t know about? So we shld keep devaluing the Naira until it’s now equivalent in value to cowries abi? Odiegwu!

  4. nene

    October 4, 2016 at 12:11 am

    devalue it to what? so 1 dollar to 500 naira is not enough? nobody is going to invest in nigeria beause of corruption, high corporate tax, and unfavourable business conditions, so devaluation will never help us. we need to develop our industries.

  5. nene+

    October 4, 2016 at 4:41 am

    Another devaluation or re denomination?
    Give Buhari a first class country and he will ruin it in couple of days.
    He lacks the love to hold Nigeria together. The bigoted leader went about calling us a corrupt people whilst his very action reeks of corruption. He dispelled investors don’t ask me how, handed our economy to a rookie. Only Buhari restricted dollar deposits and transfers in banks? haba…..

    • Focus

      October 4, 2016 at 10:43 am

      Please try and leave Buhari out of this situation, its tiring as it is. I know Buhari is responsible for Nigeria as he is the president but this is not about Buhari, rather this is about a suggestion to further devalue the Naira? what do you have to say about that?

      I think we should go for a long term solution, one that will favor us eventually.

    • focus teacher

      October 4, 2016 at 3:44 pm

      Suddenly it’s no longer about the president? It’s better you stay focused on your mumu lane.

  6. yemite

    October 4, 2016 at 10:11 am

    Lolzz. Buhari so u can as well join lie lie muhamed n his cohort lier? Great Fela Kuti Abami Ede. He as said it Long time ago when Buhari rubbishing d Great citizen of Nigeria. “My people are useless”, “My people are senseless”, my people areeeeeeeeee….what again mr lie lie muhamed. Fela have said it b4..

  7. Mary

    October 4, 2016 at 10:50 am

    For real? The first what, what do we call it?
    Seems some people have no pity on Nigerians.

  8. King Kong

    October 4, 2016 at 1:13 pm

    Whatever Amato, the EU official said, I am at a loss why BellaNaija would use a photo of retired Lt. General T.Y. Danjuma displaying N1,000 notes as the feature image for this story.

    I swear that’s T.Y. Danjuma in the photo.

  9. ify

    October 4, 2016 at 2:20 pm

    they want us to be like china where their currency have no value and everything is produce in china but still the standard of living is really bad smh they are trying to deceive us once again

  10. ogeAdiro

    October 4, 2016 at 6:58 pm

    How do you devalue something that has no value?


    October 4, 2016 at 8:23 pm

    God will Fillipo your life upside down. Mr, Amato the Nigerian currency has already been over devalued. Further devaluation of the Naira certainly does not make any economic sence period. All Nigerians should kick against these Vodo economic assertion by all these doomsday economist. A word is enough for the wise. I ‘ m just saying.

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