Business & Finance

Recession: EU Calls for Devaluation of Naira


The European Union’s Counsellor, Head of Trade and Economics Section, Mr. Fillippo Amato has called on the Nigerian government to devalue the naira.

The measure would help the country get out of its current rough economic patch, the EU official said.

“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,” he said on Monday.

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

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“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.

The naira hit its lowest point last week when it exchanged at N490 to a dollar. It however bounced, ending the weekend at 475/$.

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