The Counsellor, Heead of Trade ad economics Section of the European Union has advocated for the further devaluation of the Naira. This strange advice, he gave while granting an interiew to the News Agency of Nigeria (NAN) on Monday.
According to Amato, traditional development tools could not solve Nigeria’s current problems and as such drastic measures were needed to ensure that the country’s economy is revitalized. One of such steps he reckoned was the full devaluation of the Naira.
“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.” Amato is quoted as saying.
Amato listed the drop in oil prices, militancy in the Niger Delta and the Boko Haram menace as other factors that are contributing to the recession.
“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.
Mr. Amato mentioned support that the EU is providing which will increase 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 Sept. 14, the EU has launched a European External Investment Plan which will further support private sector investments in the African continent, including Nigeria.”
Parts of this article originally appeared in Premium Times.