Senator Ned Nwoko, representing Delta North, has cautioned the Federal Government and the Central Bank of Nigeria (CBN) against implementing measures that artificially manipulate the value of the Naira against other currencies.
In a statement personally signed by him and made available to the Newsmen in Abuja on Saturday, Nwoko stressed the importance of addressing the fundamental issues underlying the Naira’s depreciation rather than resorting to short-term solutions.
“As a nation that exports crude oil and other commodities globally, it is imperative that all transaction on these items be conducted exclusively in Naira”.
“This will incentivise buyers to seek out Naira, thereby driving its appreciation due to increased demand and scarcity”.
“Moreover, the foreign reserve policy warrants reassessment. The practice of maintaining reserves in foreign jurisdictions, termed “foreign reserves,” is not only objectionable but also counterproductive to Nigeria’s economic sovereignty”.
“Unlike other nations like the United States, Britain, France, and Japan, which hold their reserves domestically, Nigeria’s adherence to this practice raises questions about its colonial legacy”.
“If our early indigenous leaders acquiesced to this approach due to colonial influence, why should we perpetuate it? The primary rationale often cited to justify foreign reserves is trade balance maintenance“, Nwoko said.
Nwoko emphasized the need for a concerted effort to tackle the core factors responsible for the Naira’s decline, emphasizing that there are no quick fixes to the issue.
He described the pursuit of economic freedom and currency strength as an ongoing process, highlighting the necessity for continuous reassessment of existing policies and consideration of new ones.
The lawmaker underscored the significance of a sovereign nation’s currency value in fostering respect and collaboration among nations. He advocated for stimulating Naira demand by conducting transactions for globally exported commodities, such as crude oil, exclusively in Naira.
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