Central Bank of Nigeria (CBN) former deputy governor, Kingsley Moghalu, has dismissed the idea of the naira reaching N400 in value to the dollar as unrealistic.
Through his X handle, Moghalu emphasized the need for the exchange rate to reflect its true market value, rather than the short-term face being pushed by the CBN.
In his statement, he criticized the CBN for maintaining artificial rates to appease political figures lacking economic understanding. Moghalu argued that this artificiality encouraged speculators, leading to detrimental effects on the economy.
Moghalu pointed out that Nigeria’s reliance on oil revenue without a robust export economy exacerbated the issue. He stressed the urgency of transitioning to a value-added manufacturing sector capable of earning foreign exchange beyond oil.
Addressing the nation’s challenges, particularly the generation of electricity, Moghalu highlighted the need to increase power output substantially. He cited examples from countries like South Africa and Brazil, where higher energy capacities have propelled economic growth.
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Moghalu’s remarks underscored the importance of a pragmatic approach to economic policy, focusing on long-term solutions rather than short-sighted fixes. As Nigeria grapples with economic challenges, his insights serve as a reminder of the complexities involved in achieving sustainable growth and stability.
