Buhari Bows To IMF Pressure, To Devalue Naira 290 To Dollar..

After months of insisting that he had no plans to devalue the naira, President Muhammadu Buhari has caved to pressure to change course; SaharaReporters has learned from an exclusive briefing by a few top aides of the president.

After months of insisting that he had no plans to devalue the naira, President Muhammadu Buhari has caved to pressure to change course; SaharaReporters has learned from an exclusive briefing by a few top aides of the president.

A day after the Buhari administration increased the price of the pump price of fuel by 67%, from N86.5 to N145 a liter, our sources disclosed that Mr. Buhari has also agreed to demands by the International Monetary Fund (IMF) that he significantly devalues the Nigerian currency. Our sources indicated that the naira would be pegged at N290 to one dollar. The current official rate is about N200 to a dollar.

Our sources said Mr. Buhari and his economic team took the decision to accept the IMF’s terms for funds that the Nigerian government wants to access to bridge a critical shortfall in revenue occasioned by a drastic decline in oil revenues. An administration insider told SaharaReporters that Nigeria could receive as much as $3 billion in credit facilities from the IMF.

“The truth is that Nigeria cannot operate without sourcing credit from the IMF,” said one of our sources, an economic adviser to Mr. Buhari, who spoke on condition of anonymity. “And the IMF was adamant that we must devalue before they can discuss extending credit to us,” he added.


Curiously, administration officials took the decision to devalue the naira without the input of the Governor of the Central Bank of Nigeria (CBN), Godwin Emefiele, another source revealed. An official of the CBN confirmed to Saharareporters that bank executives were kept in the dark about the discussions that led to the Buhari administration’s decision to devalue the naira. “Some of us here [the CBN] are not opposed to devaluation, given our country’s present circumstances,” the source said, adding that it was the CBN’s function to pilot Nigeria’s monetary policies.

One of our sources pointed to the fact that the naira has been weakened in the parallel market, where it now sells at N360 per dollar. “The government cannot continue to operate under the illusion that the naira is stronger than it is. The only problem is that we did not start early enough to admit to Nigerians how bad the financial outlook was,” the source added.

The Nigerian economy has been pummeled by falling oil earnings that have led to a near collapse of the economy. The IMF had long indicated its readiness to support Nigeria’s economy with credit liquidity but insisted on Nigeria devaluing its currency. President Buhari had insisted on numerous occasions, before and after his election, that he would never devalue the naira.

It is unclear how Mr. Buhari and members of his economic team plan to justify the about-turn on devaluation and other policy somersaults. After initially vowing to reduce the price of fuel, the government yesterday announced a significant hike in fuel price. The administration also set to announce a 10% increase in value-added tax (VAT), another indication that the Buhari government was embracing the kind of liberalization pushed by the IMF.

To compound dwindling oil prices, militants in the oil-rich Niger Delta region have crippled oil exports substantially after bombing oil pipelines and issuing threats to oil companies to leave the region.

Last week, several oil companies evacuated essential staff from the region’s offshore platform leading to a reduction in daily oil outputs from 2.2 million barrels a day to 1.3 million barrels a day.

http://saharareporters.com/2016/05/13/buhari-bows-imf-pressure-devalue-naira-290-dollar

This buhari has no single truth in his mouth!

Tufiakwa!old man lying p and down.

It is well

buhari is a dullard. 2015

The IB Jona should be learning something now.

Today's worst news.
These same people are the main reasons why obj saved the Excess Crude and built up the foreign exchange.
A patriotic act. Obj called their bluffs time and time over again.
You are not independent country if you are a perpetual or chronic debtor.
The IMF is controlled by powerful American investment banks. Those banks are only interested in making money by any means possible. After lending you the money, they will look for ways to make you pay over and over again.
I am sure the IMF wants the exchange rate to float freely.

What Nigerian unpatriotic quacks say will happen
Everything will normalise after borrowing from the IMF and devaluing the naira


What will actually happen

The political thieves,foreigners,foreign firms and wealthy Nigerians with naira trapped in the Nigerian economy will convert their naira to dollars and shipped them out. (The same thing happened in Greece.)
The money borrowed ends up not providing any benefit to the country.
In the meantime The Nigerian debt has becomes larger.

Now I expect the parallel market to devalue further in order to maintain their margin. That is, if they've not done so already.
While I predicted the list directly below when Jonathan was squandering the country's resources, it is very important that Buhari rejigs is team, reorder his budget and rethink policy to deliver better services delivery as quickly as possible. (E.g step can be taken to reduce 25% of Nigerian fuel consumption in Lagos and the bloated and corrupt budget of the national assembly )
Emphasis on quickly.

Runaway Inflation
Civil servants strikes for more salaries
More inflation
More hardship for non civil servants.
Interest rates will go up.

The Nigerian economy is bedevilled by evil spirits( Nigerians).
The only places where the economy works are in poor autonomous or isolated villages where

1 prices are not set arbitrarily.
2 the laws of demand and supply actually works.
3 The value of the naira is governed by it's purchasing power and not the foreign exchange value.
4 inflation is low (local goods).

why $290? let them make it $419.

I created a this thread two hours ago and somebody moved it to business section

https://www.nairaland.com/3103520/nigeria-devalues-naira-Sahara-reporters

What!

ok

Spiralling effect,increase in prices of goods and services,workers will demand for increase in salary and wages.Brace up Nigerians.

Anybody that associates Buhari and his handlers in the APC with an iota of integrity, sincerity or intelligence will develop cancerous boils in the most sensitive parts of their body.

After running amok claiming he has to be convinced what has now convinced him? Useless old coot!

Like someone said earlier. It seems the APC has dumb analysts cos almost all their campaign promises & policies back then seem to be backfiring.

They r finding it difficult to make good on their promises.

Smh.

E Don Happen Oh!!!!!!!! Rain or Sun, Subsidy or Devaluation; I am making money this year. Who's with me?

Buhari is a scammer

What manner of people do we have in this country?

What good is devaluation to the ordinary Nigerian on the street?

Someone did his best, held on for so long and threw everything at it to give the little change in your pockets some value, yet you turn around and mock him for trying so hard to defend you. It's the kind of thing that makes you think that some people deserve everything coming their way!

See them rejoicing and casting aspersions as though to imply that this butters their bread in some way. Go with it, just don't come back here later to complain about just how hard life has been for you and your folks owing to this!

As for me, I hand him a trophy for trying!

tuale4u:
ok

. Hehehehe how life? You supported his stance against devaluation, what is your take on this?

When we told these people that Buhari is dumb & that APC is a political fraud, they called us 'haters', 'wailers' & 'IPOB yoots', today every campaign lie has been denied & Buhari is going back to everything we told him and was called names for.

APC are scammisters.

Buhari thought he was intelligent and now he has seen that he isnt

tuale4u:
ok

For what?

1 step forward 2 back. They tried I guess...

The problem is That those who blame everyone except Buhari and insulted Ibb for IMF loan will come and spin this one without objectivity.

Is this not the same people that were spitting blood that they will never devalue the naira? And someone will still address Buhari as a man of integrity. This Government keeps on disgracing itself. One step forward, several steps backward.

Watch out as all those people that were defending the Presidency's stand on devaluation begin to make excuses and explain to us why this is the best decision ever made!

Buhari! Buhari!! Buhari!!!

Cc

Beremx, Gbawe, Omenka, Obiagelli, Ngeneukwuenu, Urennankoli, Passingshot, Obailala, Dropshot.

.

hahahhahahahahahahahahhaha do dis today, change am tomorow. say one tin today, deny am tomorow. do dis today, rearange am tomorow. wetin be dis
well, ones again, wailers n imf have been vindicated. only a madman like buari go talk say him no go devalue an already devalued naira. so much for ''I will make N1 ekual to $1''.
clearly buari dullard na comfirm economic illitrate. na so d guy just dey experiment on 170 million nigerians with ancient daura fura danono economics. na so him just dey flip-flop forward n backward with failed policies for petroluem sector.
imagine after all d hardship n suffering him impose on pipul n students abroad cos of him refusal to devalue d naira, na now him wan devalue naira wen d damage has already been don devaluation wey him suppose do since last year yeye duara govt.
where dem chronic zombies wey talk say nigeria no need imf loan una dey see wetin dey happen una messiah wan devalue naira make him access $3 billion loan. d same amount wey dem efcc talk say dem recover in 6months! upon d billions n billions dem talk say bauri recover, i no understand why buari no wan use d moni implement him over bloated budget. i no get am at all. anoda comfirmation say lies n propaganda na part n parcel of buari govt philosophy.
dis administration no get anitin to offer except trial n error.

Forget my vote come next election

Educated people telling an illiterate what to do n he says no


At last he does the same thing SHAME!

Brainaic:
Is this not the same people that were spitting blood that they will never devalue the naira? And someone will still address Buhari as a man of integrity. This Government keeps on disgracing itself. One step forward, several steps backward.

Watch out as all those people that were defending the Presidency's stand on devaluation begin to make excuses and explain to us why this is the best decision ever made!

They have no shame especially omenka/fiizznation...

After sai baba has finished beating his rusty chest out of shape, he has finally removed fuel subsidy and devalued the naira.

Buhari has no shame just like his lackeys on nl..

222Martins:
E Don Happen Oh!!!!!!!! Rain or Sun, Subsidy or Devaluation; I am making money this year. Who's with me?

I am with u bro

I ain't feeling this heat at all,
I am too employed 2 know somtn is even happening
M just sorry 4 dis poor ass APC supporters.


Dey will reap what dey sowed.

This should not be surprising...the handwriting can be seen on the wall.

However, Vanguard newspaper reported: "But speaking to Vanguard Mr. Femi Adesina, the special adviser to the president on media and publicity denied the reports. He said there was no such plans."

Source: http://www.vanguardngr.com/2016/05/buhari-devalue-naira-290-dollar/

Cc: lalasticlala, dominique, Mynd44, Seun

Guys,

Does it mean that the official (CBN) naira-dollar exchange rate will now be 290/$ ?