Strengthening Naira Value By Dr kenny Odugbemi
Naira is a means of exchange,and Vehicle of exchange of goods and services on one hand we give kudo to CBN for taking charge using such temporary stop of speculative arbitrage.
*FMF/CBN financial ideology
✓Domestic resources mobilization
✓Prudent management of finance
Alignment of monetary and fiscal policy
✓Encouragement of PFI's,DFI's to invest in diverse economic and profit driven opportunities
Our total public debt is over N87trn,with new addition of N1trn being accrued on Eurobon
Crude oil price in international market is $86.
We are far below OPEC quota as we oscillate between (1.2-1.4)mbpd,with production cost of $48,,We are left to share the balance with other Multinational oil, leaving no appreciable increase in our foreign reserve and revenue from oil account for over 90% og our forex.
*Naira is highly volatile due to our increasing foreign debt and local debt, depreciation, devaluation,insecurity and financial leakages
*CBN intervention
These includes and not limited to the following
✓BDC reduction licencees from 5000 to1500, which is still too high to manage
✓Continuous mopping of Naira across all financial linkages
✓Termination of cryptocurrency and Binance who are the major speculators
✓Proposed recapitalization of local.bank to meet N1TRN in preparation of our decade projectuon of $1trn GDP
All these are regarded as low hanging fruits to strengthen Naira
Secondary intervention
✓We need an enhanced strategic relationship with the following stakeholders
Foreign Multinational financial institution-
*Worldbank
*IMF,
*Sovereign trust. bank
*WTO
and others like Afriexim etc and our local banks
*Effect of dollarisation
✓We need to dimistify usage of dollar transaction I. Our daily life
Reduce all our need to our domestic environment
Complete paradigm shift to eating and drinking what we can produce and wearing cloth only from our textile just like India did to attain self sufficiency
Conclusion
We now need to address other fundamental that will strengthen Naira
Import substitution to reduce our dependency
Export substitution to increase export of more non oil related goods and services
We in addition need new industrial policy that will reflect our current realities and stem up fierce competition against smuggled foreign goods.