Naira steadies at N273 as labour lauds Buhari over proposed hiring of 500,000 teachers

THE Naira yesterday, remained steady at N273 to the dollar, after the Federal Government affirmed that its 2016 appropriations are expected to lead to N2.2 trillion.
However, naira futures trade, a derivative product used to hedge against future exchange rate moves, rose by over two percent against the currency from N256.75 it closed on Monday to N262, indicating that exchange rate would be pegged at level in 12 months.
The pressure on the futures trade of the naira was heightened as traders said the government’s plan to increase spending to make up for losses from falling oil prices was not sustainable.
Meanwhile, President Muhammadu Buhari, at the presentation of 2016 budget plan to the National Assembly yesterday, said the fiscal deficit is expected to reach N2.2 trillion naira ($11 billion) due to plans to tripling capital expenditure in comparison with 2015 budget.
Therefore, borrowings abroad will rise as much as N900 billion to fund part of the deficit, representing 2.16 percent of the country’s Gross Domestic Product, while N984 billion would be borrowed at home.
In a related development, the Nigeria Labour Congress (NLC) has lauded the Federal Government for its decision to engage 500,000 unemployed persons as teachers in the coming year.