Former deputy governor of the Central Bank of Nigeria, Kingsley Moghalu, criticized the notion of aiming for a Naira to Dollar exchange rate of N400, stating that such expectations are unrealistic.
Moghalu emphasized the importance of the exchange rate reflecting its true market value, rather than being artificially manipulated.
He attributed this artificiality to policies during Godwin Emefiele's tenure at the Central Bank, which he claimed were designed to appease economically uneducated political figures.
In a post on his X handle, Moghalu highlighted the negative impact of maintaining artificial exchange rates, citing how it encouraged speculation and ultimately harmed the economy.
He stressed the need for Nigeria to transition towards a value-added manufacturing export economy, diversifying away from reliance on oil revenue.
Moghalu pointed out that Nigeria lacks a robust export economy and sufficient foreign reserves to support a fantasy exchange rate. He urged a focus on rebuilding investor confidence and emphasized the importance of addressing longstanding issues such as the electricity deficit, which severely hampers industrial growth.
Highlighting the potential of Nigeria's entrepreneurial spirit, Moghalu argued that significant improvements in the power sector could unleash the country's economic potential.
He cited examples from other countries and underscored the need for Nigeria to prioritize infrastructure development to foster sustainable economic growth.
In summary, Moghalu's remarks underscored the need for realistic economic policies and structural reforms to address Nigeria's currency challenges and stimulate long-term economic development.
