Abuja, Feb. 2, 2024: A Financial Expert, Dr Chijioke Ekechukwu, has advised the Federal Government to create a foreign currency denominated bond to tackle the unending depreciation of the Naira.
Ekechukwu, an Economist and Chief Executive Officer (CEO) of an Abuja based financial consultancy firm, said on Friday.
The expert, who is also a past president of Abuja Chamber of Commerce and Industry, spoke against the backdrop of the continuous depreciation of the Naira and instability in the foreign exchange market.
The dollar was exchanged for N1,455 at the official window and N1,511 at the parallel market on Wednesday as a result of scarcity of forex.
This led to Bureau de Change (BDC) operators in Abuja withdrawing their services in protest on Thursday by observing a “no sales ” policy.
According to Ekechukwu, the implication of the action by the BDCs is that whenever they reopen the market, the Naira will depreciate further.
He said that the surest way out of the wide dollar gap was for the Federal Government to create a foreign denominated bond like the Eurobond and increase its volume.
“This will bring the pressure down in the forex market.
“The Federal Government should also recapitalise the banks and ensure that only foreign currencies are brought in as new capital into the banks.
“This will force Nigerians who have monies outside the country to bring them in. Foreign investors will also come in with foreign exchange to buy into Nigerian banks, ” he said.
He advised that the power sector should also be more privatised and better funded.
” in the power sector, the Federal Government should insist that only foreign currency will fund it to achieve better results, ” he said.
Ekechukwu also urged the Federal Government to do whatever it would take for the solid minerals sector to start earning revenue for the country.
“Whatever it takes, we need to break the jinx in the solid minerals sector and ensure that the sector starts producing foreign exchange for the government,” he said.