MTN expects Nigeria to devalue Naira this year

Brett Goschen - MTN CFO

Brett Goschen – MTN CFO

South Africa’s MTN Group expects the Central Bank of Nigeria (CBN) to devalue the Naira by up to 22 percent at some point this year. They expect the naira to be devalued within 230 t0 240 band to a dollar from the current 197 according to Brett Goschen, the chief financial officer of the MTN Group

Africa’s biggest wireless operator is in talks with the Nigerian government on finding a way out of the $3.9 billion fine imposed on it last year for failing to cut off unregistered SIM card users.

MTN is not the first corporate entity to forecast the devaluation of the naira, as Diamond Bank did the same in its 2016 business outlook. “With lower oil prices to persist and its implications on foreign reserves, further naira devaluation of 15 percent minimum is anticipated in 2016 at the official market,” the bank said.

President Muhammadu Buhari has however insisted that he will not allow further devaluation of the naira.


Credits: Reuters/TheCable

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