A former Deputy Governor of the Central Bank of Nigeria, Prof. Kingsley Moghalu, says that the naira is not appreciating because Nigeria is not a productive economy.
Moghalu said this in Abuja on Friday while announcing his defection to the African Democratic Congress, the party on whose platform he is expected to contest the 2023 presidential election.
He added that the only thing Nigeria exports is crude oil but the price is not determined by Nigeria, hence the nation’s volatile economy.
The former CBN deputy governor said, “We want to determine the exchange rate but we are not producing or exporting anything other than crude oil. The reason naira’s value to the dollar is what it is, is because Nigeria is not a productive economy.
The number one thing that determines the value of any currency is how productive its economy is and export-oriented because when you export a diversified range of value added products, you’re earning foreign exchange in different ways.
“But if you are a one-trick pony, you depend on one commodity and you don’t control the price of that commodity, when the price sneezes, you catch pneumonia or you catch COVID. So, this is why we are suffering concerning the naira. It is also a demand and supply issue and also about inflation. So, when a country is experiencing inflation, it affects its exchange rate negatively.”
On the current state of insecurity in Anambra State which holds its governorship election next month, Moghalu said the crisis was manufactured and was being fuelled by selfish interests.
He said the deployment of soldiers in the state was unfortunate but was evidence that the police were too weak to restore order.
The Presidential hopeful, however, added that restoring peace in the state was the most important thing for now.
“What is happening in Anambra is unfortunate but it is a manufactured conflict and it is being done for selfish purposes.
“The law enforcement authorities and the military which they have now been brought into the situation unfortunately because we have a very weak police force so we have tended to see the militarisation of civilian spaces which I think is unfortunate but in order to ensure that lives are not taken uselessly, if it takes the military to enforce that order, fine but let us have peace and security,” he said.