FG has spent $8bn to defend Naira – Rewane

• Published On: 23 February 2025 at 19:00

Bismarck Rewane, Chief Executive Officer of Financial Derivatives Company, stated that the Nigerian government spent approximately $8 billion to stabilise the naira during the ongoing economic reforms.

Rewane made the revelation while appearing on Channels Television's News at 10 on Friday.

He highlighted the government's significant interventions to address exchange rate volatility and inflation concerns.

He made these remarks following the recent Monetary Policy Committee meeting of the Central Bank of Nigeria, which maintained the Monetary Policy Rate at 27.50% on Thursday.

He stated that, in addition to spending $8 billion to defend the naira, the government has raised additional funds through debt.

Despite these measures, currency volatility and inflation remain major concerns.

"We have also borrowed $4 billion through bond issues. When you look at that, you'll notice there's a lot of work. We've actually spent nearly $8 billion trying to keep the naira at current levels," Rewane said.

Rewane also discussed the recent rebasing of Nigeria's inflation data, which has led to differing interpretations of the country's economic realities.

He highlighted three distinct measurement methods, each yielding different figures:

Old Method: Inflation is at 34.8%.

New Method (Rebased Data): Inflation falls to 24.4%.

Market Survey (Real Inflation): Inflation is approaching 33%.

Rewane questioned the sharp decline reported in the new inflation metric, claiming that the figures may not accurately reflect the realities faced by ordinary Nigerians.

"It is impossible to reduce inflation by 10% in such a short period of time. "The average person does not believe that inflation has fallen so dramatically," he said.

The persistent pressure on the naira, as well as inflation uncertainties, cast doubt on the effectiveness of government policies for economic stabilisation.

Despite official reports of a drop in inflation, market conditions indicate otherwise, with consumers continuing to face rising living costs.