Naira Appreciation: No Quick Fix, Says Ned Nwoko

The Senator representing Delta North, Ned Nwoko, has cautioned the Federal Government and the Central Bank of Nigeria (CBN) against implementing measures that could artificially force the Naira to gain value against other currencies.

In a press statement made available to journalists recently, Nwoko advised that such measures would not address the underlying issues responsible for the Naira’s depreciation and urged a focus on stimulating Naira demand instead.

According to Nwoko, Nigeria’s economic sovereignty and respect among nations are tied to the value of its currency. He suggested that conducting transactions on exported commodities like crude oil exclusively in Naira would incentivize buyers to seek out the currency, driving its appreciation due to increased demand and scarcity.

Nwoko also questioned the foreign reserve policy, describing it as “objectionable” and “counterproductive” to Nigeria’s economic sovereignty. He noted that other nations like the United States, Britain, France, and Japan hold their reserves domestically, and wondered why Nigeria should perpetuate a practice that raises questions about its colonial legacy.

The lawmaker, who is also a Solicitor of the Supreme Court of England and Wales, acknowledged that the recent appreciation of the Naira was not solely due to the CBN’s new measures.

Instead, he attributed it to the decline in refined oil imports following the production and distribution of refined petroleum from the local Dangote refinery. He encouraged local production of other heavily consumed products to stabilize the currency, warning that without addressing the underlying issues, efforts against dollarization would fail.

Nwoko had previously advocated for crucial measures to combat dollarization and stabilize the Naira in a statement in January. While various measures have been implemented since then, he believes their efficacy is yet to manifest fully, as the root cause of Naira devaluation remains unaddressed.

Source: NAN