Former Deputy Governor of the Central Bank of Nigeria, Kingsley Moghalu, has warned against the illusion of a stable exchange rate for the Naira, emphasising the need for a realistic approach to economic policy.
In a recent post on X, Moghalu expressed his concerns about unrealistic expectations regarding the Naira’s exchange rate, stating,
“Those who want the Naira to be N400 to the dollar are living in a dream world.”
He highlighted the importance of the exchange rate reflecting its actual market value rather than being artificially maintained, as was attempted during Emefiele’s era.
Moghalu criticised the previous approach, which he described as creating room for massive arbitrage by speculators, ultimately causing economic bleeding.
He emphasised Nigeria’s lack of a productive export economy and debunked the notion of having $100 billion in foreign reserves, calling it a fantasy.
“The sooner we focus on painstakingly creating a value-added manufacturing export economy that earns forex beyond oil in real and significant terms, the better,” Moghalu stressed.
He pinpointed the electricity problem as a significant hindrance to economic progress, citing Nigeria’s stagnant power generation capacity of less than 4,000 megawatts for a population of 200 million over decades.
Moghalu urged a substantial increase in power generation to unleash the potential of Nigerian entrepreneurship, proposing a target of 20,000 megawatts.
“Increasing power generation will unlock the full potential of the Nigerian entrepreneurial spirit.”
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