Financial experts have decried the continuous devaluation of the naira by the Central Bank of Nigeria, stressing its adverse impact on the country’s economy.
The reaction followed media reports on the possible devaluation of the currency by the CBN, after the apex bank removed the exchange rate of N379/$1 from its website.
A financial expert, Prof Ovie Ogidiaka, who spoke with The PUNCH in a telephone interview on Thursday explained that the CBN had been doing the country a disfavour by devaluing the naira.
According to him, the devaluation process weakens the value of the naira, limits the purchasing power of Nigerians, and increases the cost of production.
He said, “We don’t need this. The CBN has never done us right with respect to that. I remember when we first started with devaluation, it was during Babangida’s regime. He was forced to devalue the naira, and even till now, we are still suffering the consequences of what he did. Ever since then, the naira has constantly been devalued.
“Devaluation comes when you want to borrow from multilateral and bilateral committees. These are some of the conditions they give to you to make your currency useless, limit your purchasing power and make you constantly want to depend on them.”
In a seprate interview with The PUNCH, another expert, Dr Samuel Nzekwe, maintained a similar position, adding that since the first devaluation of the naira by the CBN, the prices of consumer goods had continued to surge.
When asked if Nigerians should invest in cryptocurrency in place of naira as the devaluation of naira persists, a cryptocurrency expert, Mr Abideen Ojo-Oniyun, replied in the negative.
Ojo-Oniyun, who spoke in a telephone interview said it was ill-advised for Nigerians to invest in cryptocurrency given the market’s high volatility.
He said, “The crypto market is a sensitive and very volatile market.”
He added that was safer to invest in the dollar, adding that it was more stable.