TheCable

Obida Wafure, a doctor of economics at the University of Abuja, believes that the recent devaluation of the naira by the Central Bank of Nigeria (CBN) would trigger unemployment and closure of industries.

Speaking with NAN on Thursday in Gwagwalada, Abuja, Wafure said that the devaluation would have both negative and positive effects as it would encourage local industries while bringing about closure of those that depend mainly on imported raw materials.

“Once a currency is devalued, there are negative and positive effects to the economy, especially at the value chain of every nation state, but the negative effect supersedes the positive effects.

“The negative effect is that it will increase the rate of importation and so many industries will be shut down as they will not afford to import some raw materials.

“It will also lead to unemployment and lower the production capacity and thereby bring about inflation as the Growth Domestic Production (GDP) growth rate will fall.

“Our GDP growth rate is measured by the activities in the economy, so by the time inflation is going on, the economic activity of the country will fall.”

The CBN had on Tuesday announced the devaluation of naira by N13 as part of measures the bank said were aimed at strengthening the nation’s economy.

Also speaking on the appointment of Diezani Alison-Madueke, minister of petroleum resources, as the first female OPEC President, the don described the development as a step in the right direction.

He said that her appointment had lifted the image of Nigeria and women, particularly in Africa and internationally and would further encourage women.