“No Short Cut to Naira Appreciation” – Senator Ned Nwoko Warns

Amid escalating concerns over insecurity and a turbulent economy, Senator Ned Nwoko has issued a stern warning to the Federal Government and the Central Bank of Nigeria (CBN) against any measures that artificially boost the value of the Naira against other currencies. “No short cut to naira appreciation,” he emphasized, urging for a more comprehensive approach to tackling the root causes of the Naira’s depreciation.

In a statement released in Abuja on Saturday, the Delta North representative outlined his views on economic stability, emphasizing that there’s no quick fix to resolving Nigeria’s currency challenges. He asserted that achieving a robust economy and strengthening the Naira requires addressing foundational issues, rather than pursuing superficial solutions.

Nwoko criticized the practice of maintaining foreign reserves in overseas jurisdictions, questioning the colonial legacy behind such policies. He argued that it hampers Nigeria’s economic sovereignty and suggested that a shift towards conducting international transactions in Naira would drive demand and contribute to the currency’s appreciation.

“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practice raises questions about its colonial legacy,” Nwoko said, highlighting the need for Nigeria to break away from outdated practices.

He also addressed the recent uptick in the Naira’s value, attributing it to a decline in refined oil imports due to the production and distribution of refined petroleum from the local refinery – the Dangote refinery. “Now envisage if other heavily consumed products were locally produced instead of imported. The success would be monumental and conspicuous,” he remarked.

Despite the CBN’s new measures to combat dollarisation and stabilize the Naira, Nwoko pointed out that the real issues causing the currency’s devaluation remain largely unaddressed. He reiterated the importance of tackling these core problems to ensure the long-term stability of the Naira.

“Until we confront the underlying issues head-on, our efforts against dollarisation will be in vain,” Nwoko concluded.