Nigeria’s currency crisis will only get worse if the country fails to diversify but continues to rely on its crude oil driven mono-product economy, Kingsley Moghalu, a former deputy governor of the Central Bank of Nigeria, has said.
In a statement posted on his official Facebook page yesterday, Mr Moghalu said the most important determinant of the value of the Naira is whether or not the Nigerian economy is productive and competitive in international trade.
“…So if we don’t diversify but continue to rely on crude oil as a mono-product economy, the Naira crisis will get worse, not better,” he said.
The former presidential aspirant explained that diversification of the economy is not by trading cashew or yam tubers but by adopting value-added commodities that are products of serious engineering and innovations.
“I am not talking about diversification to cashew nuts and yam tubers. No. Those are primary commodities, not complex, value added ones that are the product of serious engineering and innovation,” he said.
Mr Moghalu’s remarks come amidst an unprecedented fall in value of the Naira, especially at the black market after the ban of forex sales to Bureaux De change operators by the CBN.
Mr Moghalu noted that what Nigeria needs to do is to let the Naira find its level in the market. Thus, the CBN should stop subsidizing the currency.