Billionaire Ned Nwoko’s raises Concern over Naira Strengthening against Foreign Currencies. Senator Ned Nwoko, representing Delta North, has issued a caution to the Federal Government and the Central Bank of Nigeria (CBN), advising against implementing measures that could artificially inflate the value of the Naira against other currencies.
In a statement released personally in Abuja on Saturday, Nwoko stressed the significance of tackling the underlying causes of Naira depreciation rather than opting for short-term solutions.
Nwoko stressed the ongoing nature of economic freedom and currency strength, advocating for a continual review of existing policies and consideration of new ones.
He emphasized the importance of a nation’s currency value in fostering international respect and cooperation, highlighting Nigeria’s need to drive demand for the Naira.
As a major global exporter of crude oil and other commodities, Nwoko emphasized the exclusive use of the Naira in transactions involving these goods.
He proposed that this would incentivize buyers to seek out the Naira, thereby driving its appreciation due to increased demand and scarcity.
Furthermore, Nwoko called for a reassessment of the foreign reserve policy, arguing against the practice of maintaining reserves in foreign jurisdictions.
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He questioned Nigeria’s adherence to this practice, suggesting that it may be rooted in colonial influence and asserting that it is counterproductive to Nigeria’s economic sovereignty
Regarding recent Naira appreciation, Nwoko cautioned against attributing it solely to the CBN’s measures, citing the decline in refined oil imports due to local production from the Dangote refinery.
He proposed that similar success could be achieved if other heavily consumed products were locally produced instead of imported.
Since January, Nwoko has highlighted the importance of key actions taken by the CBN to address dollarization and ensure Naira stability.
However, he emphasized that the efficacy of these measures is yet to fully manifest, as the root causes of Naira devaluation remain unaddressed.
In conclusion, Nwoko emphasized the need to confront underlying issues directly to effectively combat dollarization and ensure the stability and strength of the Naira.