‘Naira devaluation will have negative, positive effects on economy’

By Donald Iorchir

A lecturer in the Department of Economics at the University of Abuja, Dr. Obida Wafure, has said that the recent devaluation of naira by the Central Bank of Nigeria (CBN) would have a ripple reaction on the economy positively and negatively.

In a chat with Blueprint he said the devaluation would lead to the encouragement of local industries and also bring about closure of many industries that depended mainly on the importation of raw materials.
Wafure pointed out that once a currency was devalued, there were negative and positive effects to the economy, “especially at the value chain of every nation, but the negative effect supersedes the positive effects.”

According to him, the negative effect is that it will increase the rate of importation and so many industries will be shut down as they will not afford to import some raw materials.

He commended the appointment of the nation’s Minister of Petroleum Resources, Mrs. Allison Madueke, as the first female secretary-general of the Organisation of Petroleum Exporting Countries (OPEC), saying thatit was a move in the right direction.

He said her appointment had lifted the image of Nigeria and women, particularly in Africa and internationally and would encourage the women.