A former Minister of Finance, Olusegun Aganga, clarified that the Naira’s vulnerability will persist as long as the nation relies heavily on imports.
Aganga made these remarks on Thursday during the 3rd Adeola Odutola lecture at the 51st Annual General Meeting of the Manufacturers Association of Nigeria. He stressed that to bolster the Naira’s strength, Nigeria must prioritize local production for both domestic consumption and, crucially, for export.
According to reports, the Naira’s value declined from approximately 450 to an average of 760 against the dollar in the wake of President Bola Tinubu’s exchange reforms.
The domestic currency experienced a sharp drop to 1045/dollar on Thursday in the parallel market.
However, when discussing the Naira’s rapid depreciation, Aganga commented “What is the wisdom in spending billions defending the naira when it continues to fall instead of investing in genuine manufacturers and exporters of high-value products that would earn Nigeria foreign income and more.”
The ex-minister urged the government to officially designate the industrial sector as a national priority and support it with comprehensive strategies, policies, and financial investments.
“Unlike the trillions spent on subsidies, bailouts, the Agric Anchor Borrowers Programme, the refineries, I can assure you that every naira, no matter how large, that is well spent on the strategic industrial sectors can be easily recovered and will deliver tremendous benefits to the economy and the nation,” he said.