Why Tinubu’s Policies Won’t Work – Ned Nwoko

In a critical assessment of Nigeria’s economic direction, Senator Ned Nwoko of Delta North has voiced his concerns, stating that current and future economic policies will struggle to make an impact as long as Nigeria continues to allow the use of foreign currencies alongside the naira.

Speaking on Channels Television’s Politics Today, Nwoko described Nigeria’s economy as “in tatters,” attributing its dire condition to the widespread acceptance of dollars, pounds, and euros in local transactions. According to the Senator, this multi-currency practice has devalued the naira and hampered its stability.

“Our economy is in some kind of quagmire,” Nwoko declared, arguing that introducing new policies under the current currency landscape would be ineffective. “When we became an independent nation, the naira was strong, but the acceptance of foreign currencies in Nigeria has led to the erosion of our currency’s value,” he explained.

Comparing Nigeria’s situation to the strict single-currency practices in the UK and the U.S., he emphasized that in developed economies, the local currency is the sole medium of exchange, which reinforces its demand and stability. “In the UK, if you have dollars, you must exchange them at the Bureau de Change, and everyone is paid in pounds. The same goes for the U.S. with the dollar,” he noted.

Nwoko argued that if Nigeria restricted transactions to the naira, international businesses would be compelled to buy naira to conduct trade, thereby bolstering its value. “If they want to buy oil, gas, or gold in Nigeria, they would need to transact in naira, creating global demand for our currency.”

The Senator’s proposal to restrict foreign currency use in Nigeria has already reached the Senate, where Nwoko is pushing for legislative backing to phase out the multi-currency system.