Financial specialists believe that if the government stops oil theft and increases non-oil exports, the naira would return to its true value before the end of 2024.
Ayodeji Ebo, the managing director of Afrinvest Securities Limited, suggested that in order to stabilize the currency, the government should raise foreign exchange from the international market. He said that the government ought to boost the amount of crude oil produced each day and put an end to oil theft.
We also need to get loans from the global market. For example, the government raised approximately $5.2 billion in 2021; we require that kind of investment once more. To enhance the supply, we must put an end to oil theft. The naira will gain strength if these two are completed, but in the long run, we must concentrate on non-oil exports.
According to stockbroker Charles Fakrogha, as soon as the government stops stealing oil and switches to non-oil exports, the naira would strengthen and stabilize versus other currencies, particularly the US dollar.
According to Fakrogha, there has been a lot of support for a unified exchange rate; nevertheless, in order for the economy to prosper, Nigerians need to shift their purchasing habits from being overly dependent on imported commodities to more locally made goods.
The problem lies in the fact that the naira is falling freely due to the overwhelming demand for the dollar. It is basic economics; the government is unable to match demand. In my opinion, everything the CBN does will have an impact if the strategies set in place to increase exports, income, and dollar receipts are carried out.
“Yes, in order for an economy to grow, it is imperative that we manufacture and export goods. Fakrogha, the Chief Relationship Officer at Foresight Securities & Investment Limited, said, “We cannot have an economy when we continue to import.”
The financial expert claims that CBN will be able to meet the demand for foreign exchange with increased earnings from oil and non-oil exports.
“More people want the dollar, but there isn’t enough of it, and where is it coming from? Our primary source of income, receipt of dollars, and resource is gas and oil.
We are not receiving what we are supposed to from the oil sector, as seen by the oil theft and leaks that are occurring in the industry right now.
Naira
There is a lot of pressure, and the CBN will say, “We can’t continue defending our national currency from your reserves; they want to support the naira from our reserves.” But how long will they do this? Thus, the free decline of the naira will not stop.
“There must be steps in place to strengthen the dollar before you do that. The government unified the exchange rate, which is a positive policy that we supported.
“We are seeing the naira depreciating because the CBN itself doesn’t have the dollar to supply. The CBN is supposed to be a market maker so that when more people are buying, the CBN is selling and when more people are selling, the CBN is buying,” he said.
Source: gaurdian.ng
