How to Tame the Free Fall of Naira

The persistent devaluation of the Naira raises concerns among Nigerians and key players in the economy. This decline is attributed to various factors, including an overdependence on imported goods, disregard for CBN dollarization policies, corruption among officials favoring hard currencies, speculative activities, round-tripping, and a weak export-oriented economy.

Recommendations:

1. Declare the use of foreign currency in Nigeria as illegal tender, urging commercial banks not to accept foreign currency deposits.

2. Encourage the substitution of foreign-patronized goods and services with local alternatives, emphasizing comparative advantage.

3. Enhance the productive base of the economy and prioritize diversification.

4. Combat corruption by reforming the banking system to make it more challenging to process or launder corrupt money.

Conclusion: Strict adherence to these measures is expected to contribute to the short, medium, and long-term improvement of the Naira's value, providing a foundation for economic stability.

From Muktari Amuda

CEO, Africa Super Temp Consulting