What should be done to revive the value of the naira which continues to break?

President Tinubu’s government has taken various measures to revive the value of the country’s currency.

In the past, the central bank of the country, the CBN, promised to give foreign exchange traders dollars at a low price, in an attempt to revive the value of the naira.

Also, the EFCC, which fights against corruption in the country, has previously raided money changers in the cities of Abuja, Kano and Lagos who are causing the value of the country’s currency to fall.

However, according to all the signs, these measures have not been effective, because the value of the naira continues to depreciate.

Economists have revealed some factors that they see as the ones that have hindered the recovery of the value of the naira.

Professor Muhammad Muttaka Usman, a lecturer in economics at the Ahmadu Bello University in Zaria, said that the measures taken by the country’s government do not bring any change in terms of reviving the value of the naira.

The expert said that the main factor that causes the fall in the value of the naira is the lack of control of the goods it sells abroad.

“Each country’s money becomes valuable if it manages the goods it exports for sale in the world market, this is the reason why the money of the country will be needed to buy the goods it controls”, said the economist.

He added that “if you notice in this period, Nigeria has entered a situation where it cannot export anything, most of its industries have collapsed so that they cannot control anything”.

On his part, Dr. Bashir Muhammad Achida, a teacher at Usaman Danfodio’s office in Sokoto, said the increasing demand for foreign goods among Nigerians is causing the naira to fall.

“Every time such goods are purchased, the naira must be converted into the currency of the country where the goods are to be purchased, and this undoubtedly causes the value of the naira to depreciate,” said Dr. Achida.

He added that “now in Nigeria, if you notice that most of the things we use are things that are controlled from foreign countries, such as energy, clothing, cooking oil, appliances and other daily necessities, all from We buy them overseas. Therefore, the value of our currency must continue to fall.”

According to Prof. Muttaqa, another factor that causes the naira to fall is the increase in interest rates by the Central Bank of Nigeria, the CBN.

“The increase in interest rates has also prevented investors from coming into the country, because most of the money in Nigeria is not in the banks. The interest rate is increased so that people can bring their money to the banks, but this is usually not the case in Nigeria”, said the economist.

Dr. Achida also said that another reason is the prevalence of money laundering in the country.

He said that if the government spends more money and circulates more in the country, then the money will be more in the country, so that the number of them will be more than the needs in the country, which the expert said will make a person to pay a lot of money to do something for him or to give him something.

“That will make the price go up, and it will make the value of the currency break”, as he explained.

The next thing as explained by Professor Muttaqa is the economic recession that Nigeria is facing.

The university teacher said that where the country has a good economy, this will make investors come to the country to bring their money to invest with the aim of making a profit.

“So here too, if you look at the uncertainty that the country’s economy is facing due to the security problem, they have all helped to prevent investors from coming to the country, to bring their money”, he said.

Professor Muttaqa said there is a need for the Nigerian government to try to improve the country’s industries, so that they can work together to produce the goods that the citizens need instead of buying them from foreign countries.

“This will be achieved through the provision of sufficient electricity, along with the improvement of national security so that investors from abroad can come and invest without any fear,” he said.

Dr. Achida said that the Nigerian government should focus on managing the country’s resources that God has given to the country such as oil and other minerals that the country has so that it can sell them to foreign countries.

“If she does that, the value of the naira will definitely improve, because the demand for the naira from foreign countries will have to be maintained to buy our products, which will also help to improve the value of the currency,” said the university teacher.

Professor Muttaqa said that the government must take measures to reduce the import of goods from foreign countries, and focus on the ones that are available in the country.

He said that there is a need for the government and the Central Bank of the country to provide more plans that will improve the value of the naira, given that the current measures are facing various challenges.

Dr. Achida said that one thing that the government and the CBN should do is to develop a system so that anyone who needs to exchange foreign currency, should have a document to fill in his information and why he wants to exchange and what to do with it.

“In some countries, if you want the currency of another country, you have to follow some steps like these, but in Nigeria, it’s free, no matter how much change you want, you can get it whenever you want.” , he said.

Another thing that the Nigerian government should do to revive the value of the naira according to Dr. Achida is to make agreements with the countries it buys some goods from, so that they will also buy the things they need from Nigeria.

“If we are buying something in another country, we have to reach an agreement with it, and it depends on what it needs from abroad. If we have it, then we have to sell it to it.”

“This is something that is provided by international trade laws, that is, I don’t want to give you money, and this will certainly improve our economy and revive the value of our country’s currency,” according to the economist.