Historical findings have shown that the continuous depreciation of the naira to the dollar has been on for the past 16 years.
According to findings, this decline started precisely in year 2000, when it weakened against the dollar at the parallel market by 85.98 percent as it crossed the N100 mark to N105.
Ever since, the local currency has continued it’s free fall at the parallel market. Within a space of 10 years, that is between 2001 and 2010, the currency’s valued declined to over N150 at the parallel market.
As at today, the naira-dollar exchange rate at the parallel market is over N400.
In 2001, the naira depreciated to N122 from N104 in 2001.
In 2002, it depreciated between N135-N137. It further declined to N144 in 2004, and N131.80 in 2006. It however appreciated in value to N125 in 2007.
The naira again depreciated to between N145-171 in 2009 and continued on a steep decline till at N162.9 in 2013.
This was unlike 1985 when naira’s value to the dollar was N1.70, N3.90 in 1986, N4.02 in 1987, N4.54 in 1988, N10.70 in 1989 to the dollar at the parallel market.
Analysts have said that in order to save the naira from plunging, different strategies and measures have to be taken by the Central Bank of Nigeria.
According to Okey Nnuegbu, an economist, Nigeria needs to diversify the economy in order to save the currency from total collapse.
He said: ‘‘The appetite for foreign things is one of the problems bedevilling the Nigerian economy. We need to curb our appetite for foreign goods and things. This is why there has been a call for people to buy made in Nigeria products.’’
Another analyst, Tayo Bello advised the government to promote agricultural policies in the country. ‘‘If the government wants a switch from local to foreign inputs, then it must provide the right incentives. Financing has to be provided to the farmers to support the mechanization of their farms,’’ he said.