Ned Nwoko Writes Letter To CBN Concerning Naira’s Surge Against Dollar, Euro, And More

Ned Nwoko Writes Letter To CBN Concerning Naira’s Surge Against Dollar, Euro, And More....KINDLY READ THE FULL STORY HERE▶

Senator Ned Nwoko, representing Delta North, has urged the Federal Government and the Central Bank of Nigeria (CBN) to exercise caution in implementing measures that could artificially inflate the value of the Naira against other currencies. In a statement issued personally in Abuja on Saturday, Nwoko emphasized the importance of tackling the underlying causes of Naira depreciation rather than opting for quick-fix solutions.

He emphasized that achieving economic freedom and maintaining currency strength are continuous processes, necessitating a constant review of existing policies and consideration of new ones. Nwoko highlighted the significance of a nation’s currency value in enhancing international respect and cooperation, stressing the need for Nigeria to stimulate demand for the Naira.

As a major global exporter of crude oil and other commodities, Nwoko advocated for the exclusive use of the Naira in transactions involving these goods. He proposed that this approach would encourage buyers to acquire Naira, consequently driving its appreciation due to increased demand and scarcity.

Furthermore, Nwoko called for a reassessment of the foreign reserve policy, criticizing the practice of holding reserves in foreign jurisdictions as both objectionable and counterproductive to Nigeria’s economic sovereignty. He questioned the rationale behind perpetuating this practice, particularly considering its colonial legacy and the limited number of traders involved in importing goods into Nigeria.

Nwoko, who is also a Solicitor at the Supreme Court of England and Wales, emphasized that the recent appreciation of the Naira cannot be solely attributed to the CBN’s new measures but rather to the decline in refined oil imports following the production and distribution of refined petroleum by local refineries like the Dangote refinery. He envisioned significant success if other heavily consumed products were locally produced instead of imported.

Since January, Nwoko has consistently stressed the importance of key actions taken by the CBN to combat dollarization and ensure the stability of the Naira. Despite the implementation of various strategies, he noted that the root cause of Naira devaluation remains unaddressed, emphasizing the need to confront underlying issues directly to effectively combat dollarization.

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