In response to the ongoing depreciation of the Naira, now at N1,300 to one dollar, Mr. Okechukwu Unegbu, a financial expert and former President of Chartered Institute of Bankers of Nigeria (CIBN), has proposed strategies to address this economic challenge. Today, he suggested increasing local production and consumption, minimizing imports, and pricing exports, like Nigeria's quality crude oil, in Naira.
Unegbu acknowledged that the stability of the Naira was once supported by local and external borrowings. However, he firmly stated that this period has ended. With the recent decision by the Muhammadu Buhari government to lift the FX supply ban on importers of 43 commodities, there are concerns about an increase in pressure on the Naira due to the likely surge in foreign exchange demand.
To counteract these potential effects, Unegbu is advocating for a shift towards local goods consumption. This move is expected to encourage internal growth and also help reduce governance costs. Despite possible opposition to these strategies, Unegbu insists they should be tested before being dismissed.
Meanwhile, Lai Omotola, CEO of Confederated Facilitators Limited, pointed out that speculation by wealthy business elites on their currency is contributing to the escalating dollar to Naira rate, rather than market factors. This perspective suggests that addressing currency speculation might be another avenue for tackling the Naira's continuous depreciation.
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