Senator Ned Nwoko of Delta North has cautioned the Federal Government and the Central Bank of Nigeria (CBN) against artificially inflating the Naira's value. He emphasized the need to address the underlying causes of the Naira's depreciation instead of opting for short-term fixes.
In a statement signed personally in Abuja, Senator Nwoko highlighted the importance of focusing on long-term solutions to strengthen the nation's currency and achieve economic freedom. He stressed the ongoing nature of this journey and the necessity of revisiting past policies while considering new ones.
Nwoko emphasized that a sovereign nation's currency value is crucial for garnering respect and fostering collaboration with other nations. He suggested stimulating Naira demand by conducting transactions for crude oil and other commodities exclusively in Naira, which would drive up demand and scarcity, thus increasing its value.
The Senator also questioned Nigeria's adherence to the practice of maintaining foreign reserves in foreign jurisdictions, calling it counterproductive to Nigeria's economic sovereignty. He argued that Nigeria should follow the example of nations like the United States, Britain, France, and Japan, which hold their reserves domestically. He pointed out that recent appreciation of the Naira was not solely due to CBN measures but also to a decline in refined oil imports, indicating the potential for monumental success if more products were locally produced.
