By Ibrahim Kegbegbe
The parlous exchange rate of the Naira to other currencies, currently about N1,300 to the Dollar has been a source of concern to many stakeholders.
One of such, Ambassador Olufemi Ajadi Oguntoyinbo has, as a result, called on the Federal Government to do something about it. As a member of the Manufacturers Association of Nigeria, his call for a strategic and collaborative approach to exchange rate management highlights the need for a comprehensive policy to boost industrial growth and economic stability.
Ajadi, gubernatorial candidate of the New Nigeria People’s Party (NNPP) in Ogun State said it is almost becoming a national embarrassment for the country’s currency to continue on a downward slide, leaving negative impacts on other sectors of society.
According to him, the poor value of the Naira relative to other currencies had further impoverished the citizens, especially given the interdependent nature of global economies.
He urged the Federal Government, as a matter of urgency to shore up productive sectors of the economy thereby reducing dependence on wholesome importation.
“There is no doubt that things are becoming increasingly difficult in the country. prices have gone up so high making the naira almost worthless.
“The government should do something about this and reduce the suffering of Nigerians”, Oguntoyinbo, who is CEO of Bullion Go-Neat Global Limited, said.
He said from an entrepreneurship perspective, sustaining production has become difficult and that manufacturers were passing the incidental expenses on to the masses.
Ajadi reiterated his call for the provision of basic infrastructure, as well as the introduction of more incentives for real sector operators. According to him, these will reduce production costs and raise income values.
He said the fluctuating and unpredictable nature of the exchange rate posed a significant obstacle to effective planning and investment decisions within the industrial sector.
Citing as examples of the challenges faced by businesses in sourcing raw materials and maintaining production schedules, he said the volatility of exchange rate and lack of infrastructure had contributed significantly to this.
Ajadi contended that there was a need for economic planners to sit down at a table, and come up with sustainable policies to shore up the naira rate, and also contain inflation.
Recent data supports Ajadi’s perspective, revealing a noticeable decline in industrial output during periods of intense currency fluctuations. Investors, wary of the uncertain economic environment, are increasingly hesitant to commit to long-term projects, leading to limitations in job creation and hindering overall economic growth.
Ajadi calls for a strategic and transparent approach to exchange rate management. He emphasizes the necessity for collaboration between the Federal Government, economic experts, and industry leaders to formulate a comprehensive and stable exchange rate policy. Such a policy, he argues, is crucial for attracting foreign investments, boosting local production, and revitalizing Nigeria’s industrial sector.
As stakeholders rally for a proactive stance from the Federal Government in addressing the root causes of exchange rate challenges, Ajadi’s concerns underscore the urgency for a well-defined and consistently applied exchange rate policy. In the pursuit of economic stability and growth, the onus is on the government to adopt measures that will foster the prosperity of Nigeria’s industries.