The honest reality facing the Naira — Moghalu

In a scathing critique of prevailing economic sentiments, Kingsley Moghalu, a former deputy governor of the Central Bank of Nigeria, has lambasted calls for the devaluation of the Naira, asserting that such desires are unrealistic and rooted in fantasy.

Through his social media platform, Moghalu articulated that the exchange rate should accurately reflect market dynamics, rather than succumbing to artificial manipulations perpetuated during the tenure of Godwin Emefiele at the Central Bank.

Kingsley Moghalu contended that Emefiele’s policies catered to the whims of politically influential yet economically uninformed individuals, fostering an environment ripe for exploitation by speculators, ultimately leading to detrimental consequences for the economy.

Moghalu underscored the absence of a robust export-driven economy beyond oil, highlighting the urgent need for Nigeria to pivot towards value-added manufacturing to generate substantial foreign exchange earnings.

He debunked notions of substantial foreign reserves, emphasizing the necessity for a pragmatic approach towards rebuilding investor confidence, drawing comparisons to a previous era when the Naira maintained a more favorable exchange rate.

The crux of Moghalu’s argument lies in addressing systemic issues such as the protracted electricity deficit, which has hindered industrial growth and innovation for decades. He called for a substantial increase in power generation, citing examples from countries like South Africa and Brazil, to unleash Nigeria’s latent entrepreneurial potential.

Moghalu’s remarks come amidst ongoing debates regarding Nigeria’s economic trajectory, prompting a reevaluation of conventional strategies in favor of sustainable, value-driven solutions.