Our land soaked in blood, gloom, South-East Bishops wail

By Nkiruka Nnorom

Some economic experts have pointed the direction to Nigeria’s exit from the perennial foreign exchange crisis plaguing the economy.

Speaking during a breakout session at the just concluded 28th edition of the Nigerian Economic Summit with the theme, “Monetary Policy Management In Challenging Times” , Group Managing Director of Parthian Partners, Oluseye Olusoga, urged Nigeria to return to the path of productivity in order to save the country from foreign exchange (FX) crises.

He said pressure on Nigeria’s forex happens when foreign investors come in to buy the nation’s securities and, in the bid to repatriate their money, they demand for forex which has been causing distortions on the nation’s forex market.

He stated: “When foreign money comes into the country and it’s not increasing production, it’s not different from rent seeking. The truth is that if we don’t produce, we’ll be poor.

“Once we can produce and have value added services and exports, then naturally our reserves will increase. As long as we don’t produce, the turbulence will continue.”

Also, other panelists during the session argued that Nigeria may not be able to tackle her inflation headlong except she taps the potentials inherent in the non-oil sector of the economy.

According to the Executive Secretary/CEO, Nigeria Investment Promotion Commission (NIPC), Mrs. Saratu Umar, there is a need for Nigeria to channel investment to the non-oil sector for massive forex inflows. Umar explained that the diaspora remittances should also be channeled to the non-oil sector, stressing that portfolio investment has never helped the country in any form.

“Nigeria has abundant cash crops of cocoa, coffee, cotton, groundnut, cassava, hides and skins among others that if well tapped and processed are capable of increasing the nation’s foreign exchange earnings that will impact positively on the country’s foreign reserves and by extension, her gross Domestic product (GDP).

Also speaking, former President, Manufacturers Association of Nigeria (MAN), Engr. Mansur Ahmed, said that the COVID-19 pandemic affected manufacturing all over the world but the intervention of the federal government helped the industry to be resilient. According to him, without the government’s intervention, the sector would have witnessed more troubles.

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