Former President of the Nigerian Bar Association (NBA) and human rights activist, Dr. Olisa Agbakoba, has called on the federal government to revalue the naira and encourage massive public spending.
He argued that revaluing the naira would make the nation’s currency stronger, adding that the Central Bank of Nigeria (CBN) has no business trying to shore up the currency with the dollar.
Agbakoba said: “I think the argument should not be devaluation, but it should be revaluing the naira which actually needs to be revalued”.
The former NBA president, who disclosed this at a media briefing in Lagos, said the creation of an official forex window by the CBN was a very big error. He expressed displeasure over President Muhammadu Buhari’s statement that if Nigerians want to send their children abroad for schooling, they have to provide the means because the government is not ready to support such course.
He added: “We can all play in the forex market officially. The problem is that we have only less than $32 billion in reserves. So there is so much pressure and it is falling. The CBN Governor is worried. “The other thing is that when there is a recession, you will have to pump money into the economy. You need to have a massive public spending.
“Government needs massive borrowing. The presidents economy advisers should know how to deploy the funds, if we should have massive public borrowing because our debt ratio is very good, then we will have enough money to deal with our public construction programme.
“I think the CBN needs to be broken up, the proper function of the CBN is monetary policy management (the exchange, interest and lending rates). For a country in dire need of spending I think our lending should not be in double-digits.”