Stakeholders React To Naira Devaluation

Some stakeholders in the
business environment have reacted to the recent increase in rate and devaluation of Nigeria currency, by the Central Bank of Nigeria (CBN), saying that such decision will stifle business.
They have posited also that the Federal Government was very hasty in the pronouncement of increase in lending rate and the devaluation of the naira.
Reacting while interacting with The Tide on the issue in Port Harcourt,  a Chartered Accountant, Felix Ogbondah, said that the effect of what the Federal Government has done will begin to unfold from December, especially during the Christmas and New Year season.
Ogbondah who is also a dealer in consumer goods and Chief Executive Officer of “Felizzy Enterprise” explained that the time of this policy was not proper, pointing out that the managers of the economy would have waited a while to see unfolding events.
According to him, Nigeria is the first among OPEC countries to devalue her currency, whereas they would have evolved other strategies.
The chartered accountant maintained that the effect of the increase in lending and devaluation will be seen in the general price level which will further impoverish people.
On his part, Mr Ken Elendu, a trader in Port Harcourt has said that the new interest rate would negatively affect the ability of traders to obtain bank loans.
As he puts it “most of us traders usually approach banks for loans for our business, particularly now that the Christmas season is at hand, and that will automatically increase prices generally.”
The trader condemned the policy, saying that the devaluation as announced by the Apex Bank had to be deeply looked into and possibly be reversed.
He said that the development would eventually lead to inflation and further deepen the economic crisis in the country.
Meanwhile, a public servant in Port Harcourt, Mr Paulinus Michael, has said that the CBN was yet to tell the public the truth behind the adjustments, adding that it contradicts the promise made by the CBN governor, Mr Godwin Emefiele when he assumed office.
He said that the governor pledged to reduce the rate so as to enhance the growth of the real sector, on his assumption of office.
He accused the government of working against the growth of Small and Medium Enterprises (SMEs) sub-sector as the engine of the economy, pointing out that the way to develop the SMEs was through loans from banks with low interest rates.
Rather than increase lending rate, he said that government should encourage investors and SMEs operators to access loans through reduced rates, adding that devaluation would worsen the already  high cost of food items.

Corlins Walter