All Progressives Congress (APC) has critised devaluation of naira and described the development as not healthy for Nigeria’s economy.

The National Publicity Secretary of APC, Alhaji Lai Mohammed, on Wednesday in Abuja told newsmen that the devaluation of the Nigerian currency had its implications on the people and the economy.

“When the currency is devalued, it is the worst thing that can happen to any nation. All it means for a country like ours, which is import dependent, is that more naira will be needed to buy raw materials and machines.

Naira: concern over official devaluation

“It also means that very soon, cost of living will go up,’’ Mohammed said.

Mohammed said that the party had always warned government about the implication of its economic policies.

He said that the party warned government that the cost of producing oil in Nigeria was the highest and raised alarm on organised theft of crude oil.

“We went further to advise the government to diversify our economy. We equally advised government to spend more of our resources in finding new reserve.

“We gave example that while Angola and Brazil have reinvested in new deposit to about 40 per cent, Nigeria had only invested about two per cent.

“These are all the issues that we raised,” he said.

The Head, Business Development of Union Trustees Ltd., Mr Taiwo Oguntimehin also criticised the devaluation of the naira as ill- timed.

Oguntimehin said an auspicious time should have been during the Yuletide.

“It should have been done during the Yuletide because Nigerians in Diaspora come home with a lot of foreign currencies. This would have stemmed and stabilised the exchange rate.’’

According to him, the timing is wrong because the economy is going through crisis and the capital market is going down and struggling to stabilise.

He said that aside the timing, the government should have put regulatory mechanism in place to help suppress the effect from the black market operators.

“At this point in time, I do not think it is a good policy because we are trying to stabilise the economy and stability comes with policy.”

Also giving the twin policy of devaluation of Naira and increase in interest rate is the president of the National Association of Nigerian Traders (NANTS).

The President of the association, Mr Ken Ukoha, told the News Agency of Nigeria (NAN) in Abuja that the new interest rate would negatively affect the ability of traders to obtain bank loans.

Ukoha, said the devaluation of naira, pegging the exchange at N168 to one dollar, as announced by the apex bank, should be reviwed as it would trigger inflation deepen the nation’s economic crisis.

Ukohoa said that the CBN was yet to tell the populace “the real truth’’ behind the adjustments, adding that it contradicted the promise made by CBN governor, Mr Godwin Emefiele when he assumed office.

“There is confusion here. When he took over the leadership of the apex bank he promised reduction in the lending rate and he is now doing contrary,” Ukoha said.

According to him, the government is working against the growth of Small and Medium Enterprises (SMEs) sub-sector as the engine of economy.