The Federal Government has been advised to instruct the Governor of Central Bank of Nigeria, (CBN), Mr. Godwin Emefiele, to adopt diplomatic and sustainable economic policy that will support the nation during the ongoing Oil Price crash period.
Also that FG should ignore calls from some quarters that the nation’s currency be devalued in swift response to the current Oil price crash in the global market stressing that the situation will soon fizzle out.
The Social Integrity Network, (SINET), in a statement issued on Tuesday by its National Coordinator, Mallam Ibrahim Isaah, described the global oil price crash as a temporary scenario orchestrated by the coronavirus disease outbreak spreading globally.
The statement noted that, “There is widespread prediction that the falling reserves might force the CBN’s hands to depreciate the naira. It is pertinent to put on record that many factories have shut down operations while travel ban imposition has affected airlines operations, thereby reducing crude oil’s demand for industrial and operational purposes globally.
“According to recent global reports, China government has directed all her local manufacturers to resume operations with a view to matching up global production deficit geometrically. The federal government has in the past months made remarkable impact by taking bold steps towards ensuring the crash of Treasury Bill rate which has further enable the nation to reserve the huge sum of fund being used to settle Treasury Bill investors.
“The strict border closure policy implementation has also assisted prevented us from losing our scarce foreign reserve to smuggling of petroleum products across the borders which is gradually complimenting the economy.”
He added that, “Although, there is speculation that some people are on the verge of hording dollar in anticipation of Naira devaluation but our stance is for the federal government to remain resolute and committed to the reality that the Oil price will soon appreciate with very high volume demand.”
SINET further posited that Nigerian government should beware of economic sabotage in order to overcome an unraveling situation of economic meltdown the raging coronavirus heightens uncertainty putting into consideration the 7.5 percent new Tax Law in the country that has put manufacturers on constant business calculation as it affects cost of production.
The group however urged the federal government to look inward and be proactive towards adopting reliable measures capable of getting Nigeria out of the menace stronger, with strong indications of balanced economic principles.
Issah therefore commended President Muhammadu Buhari, his economic team as well as the CBN Governor for the strong commitments towards ensuring rapid economic growth and prosperity for the nation amidst several odds and global business woes.