Nigeria needs a “substantial review” of its foreign exchange policies, including further consideration about devaluing the naira, Vice President Yemi Osinbajo said.
Africa’s largest economy is facing dollar shortages as oil revenue declines due to weaker prices and a drop in production to the lowest in more than 20 years.
Nigerian President Muhammadu Buhari has resisted calls from investors and the International Monetary Fund to devalue the naira, which at the official rate has been pegged at 197-199 per dollar since March 2015. The black market exchange rate, which most businesses have been forced to use, is roughly 320 per dollar.
“It’s clear that a strategy of demand management alone won’t take us far,” Osinbajo said at a conference in the commercial capital, Lagos, on Wednesday. “We need to address the issue of supply. We think a review is necessary. But I can’t give a time.” Read more