Former Minister of Finance, Olusegun Aganga, has emphasized that the naira will continue to be weak if Nigeria remains import-dependent. He made this statement during the 3rd Adeola Odutola lecture at the 51st Annual General Meeting of the Manufacturers Association of Nigeria.
Aganga stressed the need for Nigeria to prioritize local production, especially for export, to strengthen the naira. He pointed out that the country must focus on producing goods for both domestic consumption and international markets. The exchange rate reforms implemented during President Bola Tinubu’s administration had a significant impact on the local currency, which depreciated from about 450 naira per US dollar to an average of 760 naira per US dollar. As of the time of the statement, the naira had fallen to 1045 naira per US dollar in the parallel market.
Aganga questioned the wisdom of spending billions to defend the naira when its value continues to decline, as opposed to investing in genuine manufacturers and exporters of high-value products that could generate foreign income for Nigeria.
He urged the government to declare the industrial sector a national priority and support it with comprehensive plans, policies, and financial resources. Aganga highlighted the potential return on investment from allocating resources to the strategic industrial sectors, suggesting that this approach could yield significant economic and national benefits.
The statement underscores the importance of reducing dependency on imports and encouraging domestic production to strengthen the naira and promote economic sustainability.