How to strengthen Naira, By CIS Boss

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How to strengthen Naira, By CIS Boss

News Focus

The President and Chairman of Governing of  Council  Chartered Institute of Stockbrokers (CIS), Mr Oluropo Dada has offered some tips on how the Central Bank of Nigeria (CBN) can boost the value of Naira, reduce volatility and stabilize the exchange rate through increasing aggregate level of production in Nigeria.

Kernel of the Story
– The President and Chairman of Governing Council of  Chartered Institute of Stockbrokers (CIS), Mr Oluropo Dada, advocated strengthening of the Naira through increase in the aggregate level of production in the country.
– Dada, who was represented at the forum, by a Counci Member of the Institute,  Mr Adeyemi Aina, lamented the huge loses sustained by many quoted companies through volatility in the forex market.
– He advocated regulated-deregulation of the economy as practised globally.
– The CEO, Economic Associates, Dr Ayodele Teriba, advised the government to ascertain the market value of its real estates and sell them to generate income to grow the economy.
– The CEO of Financial Derivatives, Mr Bismarck  Rewane, explained  that low productivity and high exchange rate largely accounted for rising inflation rate in Nigeria.

What Dada says

” We wish to reiterate the importance of substantially increasing the aggregate volume and rate of production in the economy. The sustainable way to strengthen our national currency, the Naira, is to produce what we consume domestically and reduce importation. The government and all stakeholders in the economy should therefore work towards achieving a significant increase in our local productivity.

” We’ll like to stress the fact that there’s no absolutely free float of currency anywhere in the world. What we have in democratic countries is a managed float currency management system, because the reality is that it will be suicidal for any country to just expose its national currency totally to the vagaries of markets and sharks to prey on.
” The dictum in the advanced economies is Regulated-Deregulation. We should be worried that quoted companies that have significant foreign exchange components are posting losses or substantially reduced profits. These include companies like Nestle, MTN and others.
” The Institute expects the Dangote Refinery, Electricity Distribution Companies, and NNPC PLC to be listed on the securities exchanges in 2024. Companies like the Toyota Nigeria should have a production line in Nigeria, which will herald in the manufacturing of car tyres , batteries services parts and engine oil. The Federal Government should re-examine the increase of Band A electricity tariff, as it will definitely affect the cost of production and make locally produced items uncompetitive .
Comments of Teriba
Commenting on the Theme of the Discourse,
the Chief Executive Officer , Economic Associates, Dr Ayodele Teriba, advocated  adoption of sale of Assets to boost income for the government as it is done in many developed economies . According to him, Nigeria is rich in state-owned real estates and the government should establish their true market values and dispose them through privatization in order to generate income to finance the economy.
Views of Rewane
In his contribution , a renowned economist, Mr  Bismarck Rewane ? attributed the soaring inflation rate in Nigeria to higher exchange rate and lower productivity . He noted that the market structured problems should be reduced to manage the economy .
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