Hasty devaluation of Naira responsible for economic hardships – Expert

Many had expected President Bola Ahmed Tinubu to take the time to thoroughly evaluate the economy after his inauguration on May 29 before making any policy changes. Anyebe pointed out that the President’s policy statement on May 29 led to rapid increases in fuel prices and a host of associated problems.

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The expert suggested that the situation could have been better managed, particularly as the government was already preparing to remove the fuel subsidy in July. Anyebe believes that the hasty devaluation of the naira played a significant role in the current hardships.

Speaking about the ongoing difficulties, particularly related to the affordability of essential food items, Anyebe stressed that unless the naira appreciates, the standard of living in the country will continue to deteriorate. He explained that the people generally welcomed the subsidy removal due to the perceived corruption associated with it.

However, Anyebe proposed that the government could have studied the subsidy removal to assess potential savings, maintaining the existing monetary policy until the appointment of a substantive Central Bank of Nigeria (CBN) governor. Instead, they proceeded to devalue the naira.

In the expert’s view, the devaluation of the naira has complicated the current economic situation, and the CBN governor will play a crucial role in addressing these challenges.

Hasty devaluation of Naira responsible for economic hardships – Expert