By Milcah Tanimu
In the midst of indications that the Federal Government is working towards achieving an exchange rate target of N500-N600/$1 while reorganizing the banking sector, private sector institutions and financial experts have expressed differing opinions on the feasibility and benefits of these goals.
Dr. Tope Fasua, the Special Adviser to the President on Economic Matters, hinted at the government’s plan to bolster the value of the naira during the “Cowries to Cash” lecture and launch in Abuja. Fasua attributed the recent rise in the value of the naira to government policies and suggested that this trend would continue.
However, various private sector institutions and experts have voiced their opinions on the matter. The Nigeria Employers Consultative Association (NECA) and economy experts commended the idea but urged the government to disclose clear working plans. They emphasized the need for the government to focus on local production, address the nation’s inclination to import, and ensure coordination between fiscal and monetary policy authorities before aiming for a lower exchange rate.
Oyerinde, a representative of NECA, commended the plan as commendable and ambitious but emphasized the necessity for a deliberate and focused plan of action to address the shortfall in dollar supply.
Olatunde Amolegbe, the immediate past President of the Chartered Institute of Stockbrokers, expressed skepticism about the government’s goal, stating that he has not seen any working paper detailing how the exchange rate target will be achieved. He emphasized the lack of sufficient information on the medium-term plans for achieving the set exchange rate.
