A professor of Economics, Sam Olofin, on Thursday, said it was high time to rescue Nigerian currency from imminent collapse at the hands of powerful operators in the foreign exchange market.
He spoke as the guest lecturer during the 2024 public lecture organised by the Nigerian Economic Society themed, “Recent Developments In The Nigerian Foreign Exchange Market: Issues, Options and Way Forward,” held at CBN Centre of Excellence Lecture Theatre, University of Ibadan, Ibadan, Oyo State capital.
He said, “If the naira must be saved from imminent collapse, the time has come to rescue it from the hands of these powerful operators in the foreign exchange market. The time has come like it is in other countries that believe in the rule of law, to define what is legal and distinguish such from what is criminal.
“The time has come like it is in other countries that believe in the rule of law, to define what is legal and distinguished such from what is criminal. Have criminals been apprehended and made to face severe consequences for their actions?
“As things stand at the moment, merely wishing that the ‘willing buyer and willing seller’ model would do the job would be a mere fantasy. The fact is that the parallel market powerful operators are not ghosts.
“Without sounding too simplistic or offering a silver bullet that would solve the seemingly complex problems in the foreign exchange market, our attention should be focused on this powerful segment of the market, the so-called parallel of black market.
“We have succeeded either deliberately or unwittingly, in creating a monster that has been well protected. It is ruthless and hardly cares about anything else other than its selfish profit motive. It is either we bring this monster under control or allow it to strangulate the naira.”
Earlier in his welcome address, the President of the NES, Adeola Adenikinju said, The choice of the theme is apt as it is perhaps the most important issue in Nigeria today.
Adenikinju added the subject of foreign exchange is within the ambit of economics as the exchange rate is a price.
“However, for an import-dependent economy like ours, it is a price that influences other prices in the economy-products, money, and factor markets. The spike in inflation in the last few months in particular has been largely driven by the exchange rate. The pass-through effect from the exchange rate to other prices is quite high.
“The government, especially the CBN, has reacted to the sharp and persistent devaluation of the naira with a rash of circular policies. At times, we worry that the effects of a particular policy have not been assessed before others are quickly thrown into the mix. This action tends to add to uncertainty and the flight to safety postures of economic agents, who continue to hold dollars outside the banking system,” he said.
Among the dignitaries were Central Bank of Nigeria Governor, Olayemi Cardoso; Special Adviser to the President on Economic Affairs, Tope Fasua; Director General, NISER, Antonio Simbine; Vice Chancellor, University of Ibadan, Kayode Adebowale; among others.
