The persistent depreciation of the Naira is seen as not having an immediate solution after all the foerign exchange measures introduced by the monetary authority to stem its tide, Nigerian analysts are saying.
The Central Bank of Nigeria (CBN) had introduced various demand and supply measures to boost foreign exchange inflows and ensure the stability of the Naira.
Some of the measures are, removal of third parties from buying of foreign exchange routed through Form ‘M’, receiving of Diaspora remittances inflows in foreign currency through the designated bank of their choice, introduction of Naira 4 dollar scheme, discontinuation of dollar sales to Bureau De Change (BDC) operators and the most recent one – the RT200, among others.
“I don’t think there are things anybody can do in the immediate to stop the Naira depreciation because our balance of trade and balance of payment are negative. Nigeria is currently importing more than it is exporting”, said Johnson Chukwu, managing director/CEO Cowry Asset Management Limited during Nairametrics economic outlook Webinar.
He said in the long run, Nigeria must be a producing economy or manufacturing hub, producing quality products for exports.
Taiwo Oyedele, head of tax and corporate advisory services at PwC, said explained that the 43 items prohibited from accessing foreign exchange can be imported but cannot access foreign exchange.
He was concerned that the items that can have access to foreign exchange get 30 percent from the official market while 70 percent is sourced from the black market.
Oyedele called on the collaboration of the Monetary and fiscal authorities to address the Naira depreciation.
He said the government should address the crude oil theft, which is one of the contributing factors to Naira depreciation.
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Dayo Obisan, executive commissioner (Operations), Securities and Exchange Commission (SEC), called for the harmonisation of the exchange rate to enable more foreign investment in the country.
He was confident that the CBN was gradually working towards achieving a unified exchange rate policy.
Chizor Malize, managing director/chief executive officer of Financial Institutions Training Centre (FITC), said Nigeria is already in a Naira crisis and that there is need to move from consumerism to production.
On what will stop oil theft in the Niger Delta region, Chukwu said, Oil theft in the region has remained unabated because they are not getting appreciable value from the authorities. Government should develop the area with good infrastructure and education to make life worth living for them.”
