Local production, reduced importation will strengthen Naira – Expert

A Financial expert, Mr Okechukwu Unegbu, says improved local production of commodities, increased consumption of local products, and reduced importation of goods and services will help to stabilise and strengthen the Naira.

Unegbu, a past President of the Chattered Institute of Bankers of Nigeria (CIBN), said this to the News Agency of Nigeria (NAN) on Sunday in Abuja.

According to Unegbu, it will also be advantageous if the Nigerian government can price commodities for export in Naira.

“We are not producing anything, and the only thing that can help the Naira to stabilise is when we produce commodities that can be exported.

“Our exports should also be priced in Naira. Even our crude oil; we have very quality crude, it should be priced in Naira.

Unegbu said that local production and manufacturing of consumables would put Nigeria in a position to determine the value of the Naira.

He said that the Naira appeared relatively stable in the past because government was supporting the currency with local and external borrowings.

He added that the recent lifting of the ban on FX supply to importers of 43 commodities, which were banned by the Muhammadu Buhari government, would further exert pressure on the Naira.

“People will start looking for FX to bring those commodities in. This will further put pressure on the Naira. We need to avoid foreign goods and consciously work to firm up the Naira.

“Nigerians have a penchant for foreign goods. If we all decide not to import anything and consume what we can produce, the Naira will firm up.

“In the past, government was supporting the Naira with borrowings. That era is over. Now, we will need to look inwards to increase production and also reduce the cost of governance, ” he said.