The deplorable state of the Naira’s exchange rate, currently hovering around N1,300 to the Dollar, has stirred significant concern among stakeholders, with Ambassador Olufemi Ajadi Oguntoyinbo adding his voice to the growing chorus. As a member of the Manufacturers Association of Nigeria and the gubernatorial candidate of the New Nigeria People’s Party (NNPP) in Ogun State, Ajadi has sounded the alarm on the dire consequences of the weakening currency and implored the Federal Government to take decisive action.
Ajadi, who brings a wealth of experience and perspective as the CEO of Bullion Go-Neat Global Limited, has expressed deep concern over the negative impacts of the dwindling value of the Naira on various sectors of the economy. Labeling the situation a potential national embarrassment, he has urged the Federal Government to swiftly address the issue to alleviate the hardships faced by the citizens.
The parlous state of the Naira, according to Ajadi, has led to a surge in prices, effectively eroding the purchasing power of the citizens. As prices soar, the Nigerian people find themselves grappling with increased financial strain. From an entrepreneurial standpoint, sustaining production becomes a formidable challenge, prompting manufacturers to pass on additional costs to consumers.
Ajadi also emphasized the need for the Federal Government to focus on shoring up productive sectors of the economy, reducing dependence on extensive importation. He contends that addressing the root causes of the exchange rate crisis requires a strategic and collaborative approach. Basic infrastructure provision and the introduction of incentives for real sector operators are among his recommended measures to alleviate production costs and elevate income values.
Naira’s stability is paramount.
The unpredictability and volatility of the exchange rate, as outlined by Ajadi, pose significant obstacles to effective business planning and investment decisions within the industrial sector. He points to challenges in sourcing raw materials and maintaining production schedules, attributing these difficulties to the fluctuating exchange rate and insufficient infrastructure.
Ajadi’s call for economic planners to develop sustainable policies to stabilize the Naira rate and contain inflation is underscored by recent data reflecting a decline in industrial output during periods of intense currency fluctuations. He stresses the importance of a well-defined and consistently applied exchange rate policy, urging collaboration between the Federal Government, economic experts, and industry leaders to foster economic stability, attract foreign investments, and revitalize Nigeria’s industrial sector.
As Nigeria grapples with the challenges posed by the current state of the Naira, Ajadi’s clarion call for urgent government intervention stands as a rallying cry for proactive measures. The prosperity of the nation’s industries hinges on the formulation and implementation of policies that will address the root causes of the exchange rate crisis and pave the way for sustained economic growth.
