Ibrahim Advises Govt To Devalue Naira.

The Group Managing Director, Energy Group
Conglomerate, Mr. Jimoh Ibrahim, has advised
the Federal Government to devalue the naira
in order to mitigate the impending global
financial crisis projected to occur in 2014.
Ibrahim spoke at the Obafemi Awolowo
University, Ile-Ife, where he donated a
multimillion naira postgraduate college
building complex named after him, on
Thursday.
According to the business mogul, the entire
world will witness real financial crisis in 2014
up till 2018 – owing to financial meltdowns in
some economic sectors of Britain, United
States of America and other parts of Europe.
Specifically, he said a slide in home equity
investment in the US and indebtedness in
British banking sector coupled with two per
cent recession in France and economic
challenges in other parts of Europe posed a
real threat to global economy.
He said, “I know that my suggestion will raise
criticisms. Some people will query why I am
saying this. But the entire world is in financial
crisis. The financial crisis will start in 2014 and
it may last till 2018.
“The housing sector will be affected in the US
and many banks will go under in Britain. We
are looking at how the US is going to react to all
this.”
Ibrahim cautioned the Federal Government
against assuming a self-sufficiency profile that
would give a wrong signal to donor agencies
that all is well with the country.
He also advised the government to ensure that
“no bank in the country goes under,” adding
that “the private sector should be encouraged
to create jobs.”
He said, “The Federal Government should
mitigate capital flight. There is the need to
encourage investors to spend their money in
the country.”
He explained that a foretaste of the financial
crisis was already manifesting in Europe and
the US with laying off of thousands of workers,
urging the Federal Government to take
proactive steps.
Ibrahim recalled that the projected budget
estimate of the Federal Government stands at
N4.8trn, adding that N2.7trn of the budget
would be spent on recurrent expenditure while
N1.7trn would be used as petroleum subsidy.
The philanthropist, who said N800bn would be
left for capital expenditure, warned that if the
country’s budget witnessed a 25 per cent
budget slide, “there will be no budget to pass
down.”
The Pro-Chancellor and Chairman, Governing
Council, OAU, Prof. Rowland Ndoma-Egba, and
the Vice-Chancellor of the institution, Prof.
Bamitale Omole, commended Ibrahim, who is
an alumnus of the university.
Both Ndoma-Egba and Omole called on the
alumna of the university to take a leaf from the
example set by Ibrahim.