Rewane doubts new inflation figure, says FG spent $8bn to defend Naira

Bismarck Rewane, Chief Executive Officer of Financial Derivatives Company Limited, has raised concerns over the federal government’s economic policies, stating that approximately $8 billion has been spent to stabilize the naira amid persistent inflationary pressures.

Speaking on Channels Television’s News at 10 on Friday, Rewane highlighted the government’s financial interventions, including borrowing an additional $4 billion through bond issues, to manage exchange rate volatility.

“We’ve actually spent almost $8 billion trying to support the naira at current levels,” he said, questioning the effectiveness of these measures following the Central Bank of Nigeria’s (CBN) decision to retain the Monetary Policy Rate (MPR) at 27.50% during its recent Monetary Policy Committee (MPC) meeting.

Rewane also expressed skepticism over the recent rebasing of Nigeria’s inflation data, which significantly reduced official inflation figures from 34.8% to 24.4%.

Citing alternative measurements, he argued that real inflation is closer to 33%, stating, “There’s no way that inflation can reduce by 10% in a short period. The man on the street does not believe that inflation has come down as sharply as that.”

His remarks contrast with the CBN’s position, as Governor Olayemi Cardoso recently noted that macroeconomic improvements, including exchange rate stability and moderated fuel prices, are expected to positively impact inflation in the near term.

“At this meeting, the Monetary Policy Committee noted with satisfaction, recent macroeconomic developments which are expected to positively impact the price dynamics in the near to medium term.

“These include the stability in the foreign exchange market with the resultant appreciation of the exchange rate and the moderation in the price of PMS,” Cardoso had said, defending the government’s economic approach during the Monetary Policy Committee (MPC) meeting.

The CBN governor also acknowledged ongoing inflationary pressures, particularly in food prices, but emphasized that the National Bureau of Statistics’ rebasing of the Consumer Price Index (CPI) reflects updated consumption patterns.

Despite official optimism, Rewane’s analysis suggests that everyday Nigerians continue to struggle with rising costs, raising concerns about the effectiveness of government policies in stabilizing the economy.