The Central Bank Governor Godwin Emefiele has explained why the Naira is on a free fall.
He said the country’s currency depreciated against the Dollar because the nation has nothing to export except oil.
Emefiele disclosed this during a career talk organised for the teenagers of Redeemed Christian Church of God (RCCG) at TEAP school, Abuja.
He spoke in response to a question by one of the teenagers.
He said over dependence on oil contributed largely to the current situation, stressing that when the oil falls, the naira falls.
The CBN Governor further stated that the only way out was to diversify the economy, which the federal government has commenced.
Emefiele, who was represented by his deputy, Sarah Alade, emphasised that the nation would grow economically when it produces, have more things to sell and export to earn dollars.
His words: “Our currency is naira but there are lots of things we buy but we cannot use the naira.
“We have to use dollars but do we earn dollar? We earn dollar when we have something to sell to people who have dollar so we can gain in Naira.
“In Nigeria, the only thing we have is oil. So when the prices of oil fall, everything falls.
“We then have less dollars and in that case, those who want the dollar will then need more naira to be able to meet the demand.
“Those who did economics will know that the price is determined between supply and demand.
“So if the supply for dollar is very low and the demand for dollar is high, the price of naira will be low.
“So as a country, we should have more goods to sell and export so that we can have enough dollars for supply and the naira can grow.”
He encouraged youths to embrace entrepreneurship skills to create jobs and export goods.
Emefiele said that was why CBN set aside N220 billion to support youths and ultimately diversify the economy. Click to signup for FREE news updates, latest information and hottest gists everyday
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Restructuring will encourage states to be independent by making them to produce exportable items that will fetch them foreign exchange
ReplyDeleteThe north do not want such. The have rigged themselves with majority representatives so it will be blocked. Forget it. This is a zoo
Delete...because of APC government incompetence cluelessness wickedness and stupidity.
ReplyDeleteHmmmm what is wrong with us Africans, devaluation is bad if the nation is not an exporting nation in other words it has a negative trade balance. The main cause of the current economic crises is a dual policy of increasing the price of fuel and devaluating the Naira one should be done and the other neglected. Now the question is the way out. The Nigerian administration has no strategy hence no tactical plan neither does it understand the breakdown.Let the natural effects of the market do its work and drive the economy to a service based economy like Ethiopia cos if i say UK i will get backlash.
ReplyDeleteEmefiele & his his voodoo economic policies. U want us to diversify d economy but u raised interest rates, hence making lending to businesses more problematic.
ReplyDeleteOn instructions from the mallam at the top
DeleteI this people dump or under spel
ReplyDeleteAsk this woman or government same question in 6 months time..same answer and solutions will prefer...just talking no action..is no news that we export only oil..we need concrete action to change the tide...lower interest rates, executive capital projects, create jobs, stabilised power and encourage farming at all levels..
If the price of crude has come down why has the price of refined product gone high in Nigeria? This government is exploiting the masses.Should the masses now suffer because the previous administration failed to save for the rainy day-they failed to diversify. Those who are responsible for the present predicament of Nigeria must be made to pay for their sins.
ReplyDeleteHmmm.... God dey
ReplyDelete