The Chief Executive Officer of Financial Derivatives Company, Bismarck Rewane, has said that the Nigerian government spent about $8 billion to stabilize the naira amid the ongoing economic reforms.
Rewane made disclosure while speaking on Channels Television’s News at 10 on Friday.
He emphasized the government’s significant interventions to manage exchange rate volatility and inflation concerns.
He made these remarks following the recent Monetary Policy Committee meeting of the Central Bank of Nigeria, which retained the Monetary Policy Rate at 27.50% on Thursday.
He noted that beyond spending $8 billion to defend the naira, the government has also raised additional funds through debt instruments.
Despite these measures, exchange rate volatility and inflation remain pressing concerns.
“We’ve also borrowed $4 billion in bond issues. When you take a look at that, you’ll see there is a lot of work. We’ve actually spent almost $8 billion trying to support the naira at current levels,” Rewane stated.
Rewane also addressed the recent rebasing of Nigeria’s inflation data, which has resulted in conflicting interpretations of the country’s economic realities.
He highlighted three different measurement methods, each yielding different figures:
Old Method: Inflation stands at 34.8%
New Method (Rebased Data): Inflation drops to 24.4%
Market Survey (Real Inflation): Inflation is closer to 33%.
Rewane expressed skepticism about the sharp decline reported in the new inflation metric, arguing that the figures might not accurately reflect the realities faced by everyday Nigerians.
“There’s no way that inflation can reduce by 10% in a short period. The man on the street does not believe that inflation has come down as sharply as that,” he said.
The persistent pressure on the naira and inflation uncertainties cast doubt on the effectiveness of government policies in stabilizing the economy.
Despite official reports indicating a decline in inflation, market conditions suggest otherwise, as consumers continue to face rising living costs.
