ENUGU, Nigeria (VOICE OF NAIJA)- Chairman, United Bank for Africa (UBA), Tony Elumelu, has expressed optimism that Nigeria’s economy will recover, saying the naira will appreciate against the dollar.
Elumelu, who doubles as chairman of Transnational Corporation (Transcorp), spoke in an interview with Bloomberg on Thursday.
Recently, the Monetary Policy Committee, MPC, of the Central Bank of Nigeria, CBN, had raised the Monetary Policy Rate, MPR, which benchmarks interest rates, from 18.75 per cent to 22.75 per cent.
Speaking on the decisions of the apex bank at the last MPC meeting, Elumelu, said those are the exact decisions he would take in such circumstances.
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“So I believe, hopefully, let’s just continue. Let’s not relent. Early days are just starting. It seems one can be fairly and cautiously optimistic that we are getting there. We are on the right track,” he said.
He said the process of transformation takes time.
Elumelu, who noted that there are a few initial pains, however urged Nigerians to, “stay focused, stay the course, be consistent and be sincere and committed to it, fixing the issues, making sure that interest rate is not negative to the investor.”
He continued, “It is an inflationary situation and that we are contracting as much as possible so that we have fewer naira chasing dollars. Giving confidence to the market that we have forwards, don’t worry about the forwards.
“This is what we are doing about it. We are reducing it and we have plans to do more. I think ultimately naira will come down, I believe. When? I don’t know but I am encouraged as an economist and as an investor.
“I am encouraged by what I see. I believe in the medium to long term, things will begin to normalise. Do I expect any quick fix immediately? It’s started but I think it will take a bit of time.”
The entrepreneur said in the medium to long-term, the country will “get it” but needs to get the fundamentals right.