Former CBN Deputy Governor Dismisses Naira at N400 to Dollar Expectations as “Fantasy”

Former deputy governor of the Central Bank of Nigeria, Kingsley Moghalu, has dismissed expectations of the Naira reaching N400 to the Dollar as unrealistic, asserting that those holding such expectations are living in a dream world.

Moghalu conveyed his views in a statement shared via his social media handle on Sunday, highlighting the need for a realistic reflection of the Naira’s market value in the exchange rate. He criticized the Central Bank for maintaining artificial exchange rates to appease political figures lacking economic understanding, which, according to him, facilitated massive arbitrage by speculators, ultimately harming the economy.

Addressing the core issue, Moghalu emphasized the imperative of transitioning towards a value-added manufacturing export economy, capable of generating significant forex revenue beyond oil. He stressed the necessity of focusing on long-term strategies rather than succumbing to short-sighted approaches.

The economist underscored the importance of resolving Nigeria’s electricity challenges, citing the country’s inadequate power generation of less than 4,000 megawatts for a population of over 200 million over decades. He pointed out the potential unleashed by significant improvements in power generation, referencing countries like South Africa and Brazil with higher power capacities relative to their populations.

Moghalu’s remarks come amid ongoing discussions about Nigeria’s economic trajectory and efforts to address structural challenges hindering sustainable growth.