Nigeria’s economy has been put on a death row with the float of the Naira, says a former 2019 Presidential aspirant of the All Progressives Congress (APC), Chief Charles Udeogaranya.
Udeogaranya was reacting to a recent statement of the Central Bank of Nigeria (CBN) Yemi Cardoso defending the foreign exchange (FOREX) policy of Naira float.
Udeogaranya explained that the floating of the Naira essentially means the CBN is now trading foreign exchange at rates nearly equivalent to the parallel market, commonly known as the black market.
While acknowledging that this policy might help eliminate round-tripping, Udeogaranya warned that it comes at a high cost, potentially issuing what he described as a “death sentence” for the Nigerian economy. He pointed out that demand for foreign exchange will consistently outstrip supply, particularly in a country that is heavily reliant on imports and has minimal local production.
He emphasized that Nigeria cannot effectively compete in the global economy if the average Nigerian worker’s monthly wage is insufficient to afford basic items in other countries. He used the example of Switzerland, where 1 kilogram of chicken fillet costs approximately $29.25, which would be unaffordable for the average Nigerian given the current exchange rate.
The former presidential hopeful urged Mr. Cardoso and his economic team to reconsider the Naira floating policy, suggesting that the Naira should not be allowed to trade higher than ₦600 to a dollar. He also offered his assistance to the CBN in formulating more realistic strategies to help revive the Nigerian economy in the near future.
Udeogaranya concluded by reaffirming his readiness to contribute to the development of more sustainable economic measures if the CBN and the government are willing to engage him.