The federal government of President Bola Ahmed Tinubu has received advice from financial specialists on how to maintain the value of the Naira in the foreign currency market relative to the US dollar.
The analysts discussed the ongoing foreign exchange issue, pointing out that on Friday, the Naira was trading at FMDQ at N891.90 per dollar, but on the underground market, it was trading at N1,420 per dollar.
The country’s currency problem can be resolved by increasing crude oil output and sales, according to Lagos Business School Head of Strategy Prof. Olawale Ajai and Group Managing Director of Cowry Asset Management Company Johnson Chukwu, who reacted to the situation.
Chukwu stated that although Nigeria would have benefited from a loan from the Eurobond Market, the nation is already heavily indebted.
However, that window is currently limited as of today (Saturday) because we lack the headroom necessary to take on a sizable amount of debt from the Eurobond market.
“I believe that increasing crude production is currently our nation’s best short-term solution. In a statement, he stated, “That is the most reliable method to stabilize the Naira.”
Prof. Olawale Ajai, Head of Strategy at the Lagos Business School, stated that in order for the nation to raise its income, it must enhance its oil production.
“Also, we need to urgently increase the production of crude because if the government can earn more dollars from an increased daily production, then people can see the money coming in,” he stated.
Recall that in December of last year, Nigeria’s oil production increased to 1.4 million barrels per day, according to the Organization of Exporting Countries.
The amount is less than the 1.9 million bpd that the federal government of Nigeria had predicted.