The Federal Government has spent nearly $8 billion in an effort to stabilize the naira amid rising inflation and economic challenges, according to Bismarck Rewane, the CEO of Financial Derivatives Company.
Speaking on Channels Television’s News at 10 on Friday, Rewane detailed the government’s financial interventions and the challenges facing the country’s monetary policy.
“We’ve Spent $8 Billion to Defend the Naira”
Rewane revealed that the government has been actively intervening in the foreign exchange market to manage the naira’s value and curb inflation. In addition to direct spending, he noted that Nigeria has also borrowed $4 billion through bond issues to support the economy.
“When you take a look at that, you’ll see there is a lot of work,” he said. “We’ve actually spent almost $8 billion trying to support the naira at current levels.”
His comments come in the wake of the recent Monetary Policy Committee (MPC) meeting of the Central Bank of Nigeria (CBN), which decided to retain the Monetary Policy Rate (MPR) at 27.50% on Thursday.
Confusion Over Inflation Figures
Rewane also addressed the recent rebasing of Nigeria’s inflation data, which has led to mixed reactions and varying interpretations of the country’s economic situation.
According to him, three different methods of measuring inflation have produced widely different results:
- Old Method: Inflation stood at 34.8%
- New Method (Rebased Data): Inflation dropped to 24.4%
- Market Survey (Real Inflation): Inflation is closer to 33%
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Expressing doubt about the dramatic drop in inflation using the new method, Rewane said the figures do not match the reality of everyday Nigerians.
“There’s no way that inflation can reduce by 10% in a short period,” he argued. “The man on the street does not believe that inflation has come down as sharply as that.”
What This Means for Nigerians
Despite the government’s efforts to stabilize the naira and control inflation, many Nigerians continue to struggle with rising costs of living. Basic goods and services remain expensive, and the economic pressure on households persists.
Meanwhile, CBN Governor Olayemi Cardoso remains optimistic about future improvements. Announcing the MPC’s decision to hold interest rates steady, he said:
“At this meeting, the Monetary Policy Committee noted with satisfaction recent macroeconomic developments which are expected to positively impact price dynamics in the near to medium term.”
Cardoso pointed to stability in the foreign exchange market and moderation in petrol prices as factors that could help ease inflation in the coming months. However, he admitted that **food prices** continue to drive inflationary pressures.