The Naira exchange rate has suffered severe battering in recent times. Things are not getting any better for the Naira as all we hear on a daily basis is how value of the naira keeps dropping. Different strategies and measures have been taken by the Central Bank of Nigeria but it doesn’t seem to helping. The free fall of the Naira is not new but the rate at which it has been going down in the past weeks is quite frightening. As at today, the exchange rate on the parallel market N400 as against yesterday’s N385. Some have given suggestions on what President Muhammadu Buhari can do to save the Naira. Below are the suggestions.
1. Though President Muhammadu Buhari said he is not convinced of the need for the Naira to be devalued, some feel it is the only way out. Devaluation of the naira would help in reducing the pressure on Forex, provide the government with a degree of policy flexibility and boost the inflow of capital into the country. But it would also bring with it inflation and higher cost of living.
2. We have been too dependent on crude oil. It is time to diversify the economy and save Nigeria from collapse.
3. The appetite for foreign things is one of the problems bedeviling Nigerian economy. We need to curb our appetite for foreign goods and things. This is why there has been a call for people to buy made in Nigeria products.
4. Someone suggested the CBN relax import restrictions. Some of the restricted items are critical in the manufacturing process of many firms across sectors in Nigeria. Some of these firms have had to cut down operations or forced to shut down.
5. Agricultural policies must be promoted. If the government wants a switch from local to foreign inputs, then it must provide the right incentives. Financing has to be provided to the farmers to support the mechanization of their farms.
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