President Bola Tinubu has assured that the current momentum that Nigerians are seeing with respect to strengthening of the naira against other major currencies including the dollar will be sustained and not going to slow down.
This disclosure is contained in a press briefing by the Special Adviser to the President on Media and Publicity, Ajuri Ngelale, with State House correspondents on Friday, March 22, 2024.
Ngelale said the efforts put in place by the president in collaboration with other agencies of government and the Central Bank of Nigeria (CBN), in dealing decisively with sharp practices on certain cryptocurrency trading platforms, dealing decisively with sharp practices within the parallel market of the foreign exchange ecosystem are now yielding fruit.
Buy Made-In-Nigeria goods to strengthen the naira – Presidency
Buying local products can strengthen the local currency in several ways:
1. Reduced Imports: When people buy locally produced goods, it reduces the need to import similar products from other countries. This decreases the outflow of the local currency to pay for imports, helping to maintain its value.
2. Boosts Domestic Economy: Supporting local businesses by purchasing their products stimulates economic activity within the local community. This leads to increased production, job creation, and overall economic growth, which can contribute to a stronger local currency.
3. Increased Demand for Local Currency: As people buy local products, there is an increased demand for the local currency to conduct transactions. This heightened demand can help stabilize or even appreciate the value of the local currency in the foreign exchange market.
4. Promotes Export Competitiveness: A strong domestic market can also benefit local producers by providing them with a stable base to expand and improve their products. This can enhance their competitiveness in international markets, leading to increased exports and inflows of foreign currency, which further supports the local currency.
Overall, buying local products promotes economic resilience and sustainability, which can have positive effects on the strength of the local currency.
The presidency in the statement expressed its belief that patronage of made-in-Nigeria products is key to strengthening the naira and wants Nigerians to buy goods produced in the country to make that happen.
Ngelale said President Tinubu has approved a series of interventions to ensure that we see a mass strengthening of the Naira against all other global currencies.
The statement from Ngelale partly reads,
‘’His Excellency, President Bola Ahmed Tinubu wants to communicate very clearly to our people, that there has never been a more important time in our history to actively agree together. That we will patronize and purchase made in Nigeria products across all value chains across all sectors.
‘’There is an intentionality that we must have on this issue that we want a strong currency, we want the spending power of our people to go up. We want every Naira and kobo we earn to be more valuable not just here. But when we travel abroad, the way to achieve that is by doing just this.
‘’In addition to that, His Excellency Mr. President beyond the appeal to Nigerians to actively and intentionally make that decision every day to patronize made in Nigeria products and services across the board. He is also wanting to ensure that Nigerians fully understand that the momentum that we are now seeing with respect to the strengthening of our currency is not going to slow down.
‘’The efforts that Mr. President has put in place with collaboration with other agencies of government, as well as the Central Bank of Nigeria, in dealing decisively with sharp practices on certain cryptocurrency trading platforms, dealing decisively with sharp practices within the parallel market of the foreign exchange ecosystem that these things are now yielding fruit.’’
Whistle blowing
He stated,
‘’What we now will need to see is an active effort on the part of our people to blow the whistle wherever they see any of these sharp practices taking place, to communicate with the agencies directly that deal with these issues and understanding that this is not a government versus malign actors’ issue.
‘’This is a Federal Republic of Nigeria versus malign actors’ issue and the activities of these actors negatively impact everybody seated in this room and everybody watching this, this broadcast and all Nigerians both at home and abroad.
‘’So, all of us have to take up the mantle and agree that we will collaborate together to deal with these issues.’’
Sustain strength of the naira
Ngelale said the president is also working at ensuring that the strength of the naira is sustained in order not to make the effect of the new minimum wage become a nullity.
The presidential spokesperson added,
‘’And the last point we want to emphasize is that President Bola Ahmed Tinubu while he’s dealing decisively with the issue of the spending power of every Naira and Kobo that Nigerians are earning today.
‘’He is also ensuring that we bring a sustainable strength to the currency so that when we talk about a new minimum wage, because many of our people have asked, you know government officials about when the new minimum wage is coming in, those negotiations are ongoing. But what we do not want is a situation in which the minimum wage continues to be what it has always been in the history of our country, which is a moving goalpost.
‘’If we do not get a firm grip on the value of our currency and it continues to be a volatile, devaluing asset, then whatever we do with the national minimum wage is going to essentially become a moot point, nullity. And so we are focused on ensuring that yes, we arrive at a new minimum wage that states can afford, and that will deal with all of the needs of Nigerian families across the country.
‘’But we also want to ensure that what we peg it at is something that is sustainable over a number of years based on the long term, you know, stability that we want to bring to the Nigerian Naira with the interventions we’re presently making.’
”And this is the point that His Excellency Mr. President wants to emphatically make today.
”There is stability coming to the currency, we’re getting closer to it, and when the new
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