President Buhari questions the decision to float the naira

Nigerian president Muhammadu Buhari has expressed skepticism over decision to float the naira.

While speaking to business leaders, the president said that he doesn’t like the returns he gets from the Central Bank of Nigeria (CBN).

“How much benefit can we derive from this ruthless devaluation of the naira,? I’m not an economist neither a business man, I fail to appreciate what is the economic explanation,” he added.

This after Nigeria’s central bank last week, allowed the market to determine the rate of the naira to the dollar, which was pegged at 197 naira to one dollar.

The move was to alleviate chronic currency shortages that have depressed growth in Africa’s biggest economy.

Previously, Buhari had consistently refused to abandon an official exchange rate of the naira to the dollar ,arguing that to do so would stoke inflation in the country.

Analysts however say that the devaluation of the naira will bring back investor confidence as foreign companies had found it increasingly difficult to do business in Nigeria.