The lawmaker outlines strategies to shore up the value of the naira and boost the economy
Senator representing the Delta North Senatorial District in the National Assembly, Prince, Ned Nwoko has given his thoughts on the current naira to dollar fluctuations. In a recent interview with the Nigerian Television Authority (NTA), Senator Nwoko stated that the recent devaluation of the Nigerian currency against the naira was not a recent thing but has been happening over time.
According to him, there is a need for the naira to be the only legal tender that can be used within the country by both local and foreign businesses as this will help strengthen the value of the naira.
“The use of foreign currency to pay foreign businesses or employees in a country isn’t done everywhere else in the world.,” he stated. “We must get rid of the idea the we are embedded with the dollar to the extent that we now have a foreign reserve account elsewhere. It is tragic that an independent nation will have its reserves elsewhere. I advocate that we close the foreign reserve exchange account and that it should be controlled by the CBN. That money can be given to commercial banks to operate and such monies can be used to give out loans to youths and this will have a positive impact on the economy.”
The senator advocated that all foreign workers in the country should be paid in naira and that all domiciliary accounts in Nigerian commercial banks should be closed forthwith.
“It will take just a policy statement by the President to close all domiciliary accounts and it will fortify naira being transacted amongst the citizens,” he stated. “There should be prohibition of payment of rents and purchase of items in Nigeria with foreign currency, no matter what sort of business that is being operated.”
Senator Nwoko asked the federal government to curtail the influence of Bretton Wood institutions in the policies and programmes of the government.
“We have our own problems that are well known to us in Nigeria and it is not necessary to be taking orders from the IMF and World Bank as they have little or no experience of our daily struggles,” he stated. “As a country, if we want to strengthen our naira we must learn to take less advise from these foreign bodies that don’t understand our plight, they don’t know what we as a people go through. We are the only ones that can increase the value of the naira. We should not be frightened by the CBN pegging the interest rate at 28% or more. In a country that is organized, the increased interest rate is only a way to control the economy when there is inflation. And what we currently experience is hyperinflation. You see how the price of goods and commodities have drastically increased over the past few months. Allowing foreign currency in Nigeria has come with a lot of problems. As the black market has been in control of the market, the operators can choose to sell it at rates that suit them. If we can get rid of foreign currencies, the naira will stabilize and there will be a positive shift in the economy.”
Prince Nwoko stated that for the Nigerian currency to be stable, the country must embark on an economic revolution led by the president.
“There should be ban on the importation of goods,” he advocated. “We should do what the [South] Koreas did some years ago and what Malaysia did some years ago by banning the importation of goods and this can inspire our population to be self-dependent and manufacture our own goods. We need a currency that we regard, a currency that would be recognized globally. It is only by taking these measures that the naira be attractive and then we can boost the economy.”
