How FG spent $8bn to support naira – Rewane

The federal government has spent approximately $8 billion to stabilise the naira, the Chief Executive Officer of Financial Derivatives Company, Bismarck Rewane, has said.

Rewane also serves on the Board of the Nigerian Economic Summit Group among other entities.

His claim is coming amidst the celebrated stability in the foreign exchange market with a dollar exchanging for N1, 500 as against the volatility experienced in the recent past.

Going by the prevailing exchange rate, it means the federal government had so far spent nearly N12 trillion to stabilise the Nigeria’s currency to be where it is today.

There was no reaction on Sunday from the Central Bank of Nigeria (CBN); while the Presidency faulted Rewane’s claims.

CBN’s Acting Head, Corporate Communications, Mrs Hakama Sidi Ali, could not be reached. She did not pick her calls and did not also respond to a text and WhatsApp messages before press time.

The Special Adviser to the President on Information and Strategy, Bayo Onanuga, in a text message to Daily Trust last night, said the claims by Rewane were not true.

“It is not true. It is a ridiculous statement to make. The CBN will set the record straight,” Onanuga said.

Rewane, who spoke in an interview with Channels Television on Friday, said substantial intervention from the federal government helped in stabilising the exchange rate market.

Explaining the reason the naira has “appreciated” to N1, 505 and N1, 507 across parallel and official foreign exchange markets, he noted that the apex bank has several initiatives to support the currency.

“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,” he said.

Rewane urged Nigerians not to get carried away by the recent decision of the Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) which retained interest rate at 27.50% on Thursday.

He said the government had spent billions defending the currency and raised additional funds through debt instruments.