MINISTER of Innovation, Science and Technology, Uche Nnaji, on October 6, 2023, said Nigeria must increase production, lessen importation to solve its currency problems.
Nigeria is currently facing serious currency problems since floating its currency-Naira against the dollar, causing problems in the economy with a surge on inflation leading to a high cost of living.
Also, there are concerns about floating the Naira against the American dollar, which has led to the dollarisation of the economy and currency speculation. This development, findings have shown, has been creating a wide gap between the official exchange window and the parallel market.
To address these concerns, Nnaji said the Federal Government is ready to implement Presidential Executive Order N0 5 to increase productivity.
The Presidential Executive Order No. 5 is geared towards achieving self-reliance, and self-sufficiency through local content development and increased productivity.
He said the value of the naira would appreciate when the country started producing rather than importing, adding citizens would benefit from a more producing economy.
“If we have made in Nigeria products, we can no longer import and the stress on the naira will reduce.
“When we stop importation of goods and products, we can easily produce here, the value of our currency will appreciate.
“That’s part of the advantage that comes with Presidential Executive Order No 5,’’ the minister said.
Nnaji stressed the importance of creating a conducive environment to support the innovative spirit of Nigerian youths and entrepreneurs.
He said: “We see it as a pivotal moment in our nation’s history that will propel Nigeria to new heights of innovation and technological advancement.
H he expressed optimism that the Executive Order 5 would address challenges by providing support for made-in-Nigeria goods and services.
” The order will develop home-grown capability and the capacity to maintain, redesign, reproduce, rededicate and duplicate any infrastructure built in Nigeria for self-reliance and development.
“The Order also seeks to closely monitor and promote the capacity of Nigerian professionals and contractors in science, engineering and technological progress to compete with their counterparts globally,” Nnaji said.
He added that full implementation of the order would bolster the economy, create jobs, reduce poverty and usher in a brighter future for Nigeria.
The minister said the ministry was currently developing a national strategy for competitiveness in raw materials and product development.
He said it was also formulating national policies on leather and leather products, welding and welding related fields, among others.
Meanwhile, the Naira continued its poor run against the dollar, which experts say could be solved when Nigeria earns more from crude oil sales, halt oil theft and lend at a single digit to the manufacturing sector to increase productivity.
“The President needs to do more on curbing oil theft and possibly declare a state of emergency on that so that we could meet up with our quota with the Organisation of Petroleum Exporting Countries, OPEC quota. It would help our reserves and help strengthen the Naira,”an economist, Kalu Aja, told The ICIR.
On October 5, 2023, the Naira had a mixed performance against the US dollar, strengthening on the black market but weakening through the Investors and Exporters (I&E) window.
Data from the black market shows the naira gained ground, trading at N997 to the dollar compared to N1,000 on Wednesday.
However, at the I&E window, the domestic currency depreciated to N775.2 per dollar from N756.21 previously.
This shows that the value of the naira at the official market sector has decreased by N18.99.
Harrison Edeh is a journalist with the International Centre for Investigative Reporting, always determined to drive advocacy for good governance through holding public officials and businesses accountable.