As Naira nosedives into a tail-spin, performing woefully against other currencies of the world, especially US dollars and British pound, there has been outpouring reactions from well meaning Nigerians who believe proactive steps need to be taken in order to stem the ugly tide.
Latest in the fray of reactions is renowned economist and former Nigeria’s minister of Finance, Dr Kalu Idika Kalu.
Dr. Kalu, a very reticent elder-statesman holds a doctorate degree in Economic Development and Public Finance (UW–Madison) and is a Yale Stimson Fellow.
In a post on his facebook wall, the septuagenarian said when Managing director of the International Monetary Fund (IMF), Ms Christine Lagarde paid a four day visit to Nigeria early in President Buhari’s administration, it was plausible that Nigeria, through negotiations with Fund, could cover up to 80% to 85% of the projected revenue impact from the over 70% decline in the oil price.
He stated further in his opinion that with additional resources from such other institutions as the World Bank and the AfDB, as complement to Nigeria’s own resources, the country should have managed to keep the equilibrium between the demand and the supply of foreign exchange in 2016. He believes such initiative will not only have prevented the precipitous drop in the Naira exchange rate, but could even have strengthened the Naira by improving our reserves level as oil prices improved moderately, and as recoveries from looted funds, gains from the single treasury account and other fiscal changes took effect.
Here is the full text culled from his facebook wall which was published on Saturday night, August, 7, 2016: