As the Nigerian Naira grapples with volatility in the foreign exchange market, financial experts are urging the country’s leadership to take proactive measures to stabilize its currency. Amidst the Naira’s struggle, with rates reaching N891.90 per dollar at FMDQ and N1,420 per dollar on the black market, experts have weighed in on possible solutions.
Johnson Chukwu, the Group Managing Director of Cowry Asset Management Company, emphasized the criticality of ramping up Nigeria’s crude oil production and sales as a fundamental strategy to address the forex crisis. While acknowledging that seeking a loan from the Eurobond Market could have been beneficial, Chukwu expressed concerns about the country’s existing debt burden, implying that this option might not be feasible. He underscored the urgency of enhancing crude oil production as the most viable pathway to Naira stabilization.
Similarly, Prof. Olawale Ajai, the Head of Strategy at the Lagos Business School, echoed the sentiment that bolstering oil production is pivotal to boosting the country’s earnings. Emphasizing the immediate need to augment crude production, Ajai emphasized the potential for increased dollar inflow, thereby alleviating the economic strain.
Nigeria’s oil production, as reported by the Organisation of Exporting Countries, rose to 1.4 million barrels per day in December last year, although it fell short of the Nigerian federal government’s projected 1.9 million barrels per day.
The collective stance of these experts aligns with the pressing demand for Nigeria to prioritize strengthening its crude oil production capabilities. By doing so, the country can potentially mitigate the challenges plaguing its currency and pave the way for a more stable economic outlook.
