Floating the Naira: A Threat to Nigeria’s Economy, Says Udeogaranya
Chief Charles Udeogaranya, a former presidential aspirant for the All Progressives Congress (APC), has voiced serious concerns regarding the Central Bank of Nigeria’s (CBN) recent decision to float the Naira. His comments follow an interview with CBN Governor Mr. Olayemi Cardoso, who defended the new foreign exchange (FOREX) policy.
Udeogaranya argues that floating the Naira effectively aligns its value with the parallel market, often referred to as the black market. While he acknowledges that this approach may reduce round-tripping, he warns it could lead to dire consequences for the Nigerian economy, labeling the policy a “death sentence.” He highlighted that the demand for foreign currency is likely to exceed supply, particularly in a nation heavily dependent on imports and with limited local production capabilities.
He emphasized the detrimental impact on the average Nigerian worker, whose wages are insufficient to afford basic necessities in a global market. Udeogaranya illustrated his point by comparing prices in Switzerland, where a kilogram of chicken fillet costs approximately $29.25—far beyond the reach of many Nigerians under current exchange rates.
Udeogaranya urged the CBN to reconsider the floating policy, advocating for a cap on the Naira’s value at no more than ₦600 to the dollar. He expressed his willingness to assist the CBN in developing more viable economic strategies to help stabilize Nigeria’s economy.
In closing, Udeogaranya reaffirmed his commitment to collaborating with the CBN and the government to foster sustainable economic measures, should they be open to engagement.
