Naira depreciation: Expert highlights strategies for improving Naira value, Nigerian economy
PanNigerianNews
2 min read
As Nigeria’s Naira continues to depreciate in the international market, an expert of entrepreneurship, international businesses and lecturer at the Department of Business Administration and Management, Federal Polytechnic Ayede, Oyo State, Dr Mufutau Popoola, has bemoaned the depreciating value of the Nigerian currency against dollar and highlighted strategies the government may adopt in regulating the menace.
Popoola, who is also a Professor and Doctorate Student Advisor from Global Humanistic University, Curacao, South America, while speaking with pannigeriannews.com on Wednesday, decried that almost all businesses in Nigeria are now hiding under the dollar-Naira exchange rate to extort buyers.
According to him, to make the Nigerian Naira stronger against the US dollar, the Federal Government could consider implementing a combination of certain strategies.
He hilighted, as solutions, fiscal discipline, good monetary policies, diversification of the economy, attracting foreign investors, building foreign exchange reserves and enhancing transparency as well as accountability
Popoola, while dwelling on fiscal discipline, said, “The government can work towards reducing budget deficits and controlling government spendings to improve overall economic stability.
“The Central Bank of Nigeria (CBN) can adjust interest rates to attract foreign investment and stabilise the currency. CBN can also intervene in the foreign exchange market to manage the exchange rate.
“Nigeria heavily relies on oil exports, which makes the Naira vulnerable to fluctuations in oil prices. Diversifying the economy by promoting other sectors like agriculture, manufacturing and services can help reduce this vulnerability.
“FG can create a conducive business environment by improving infrastructure, reducing red tape, and providing incentives for foreign investors. This can increase demand for the Naira and strengthen the currency. Accumulating foreign exchange reserves can provide a buffer against external shocks and help maintain a stable exchange rate.
“Ensuring transparency in the management of foreign exchange reserves and economic policies can build investor confidence and attract more foreign investment.”
He maintained that if the measures are implemented, the Nigerian government can work towards strengthening the Naira against the US dollar and promoting economic stability and growth.
