The Central Bank of Nigeria (CBN) has asked Nigerians to remain patient as it intensifies efforts to boost the Naira amid ongoing economic challenges. The call was made during the 2024 public lecture titled “Recent Developments in the Nigerian Foreign Exchange Market: Issues, Options and Way Forward,” organized by the Nigerian Economic Society at the University of Ibadan.
Dr. Usman Opanachi, speaking on behalf of CBN Governor Dr. Olayemi Cardoso, conveyed the central bank’s commitment to tackling the foreign exchange issues that have significantly impacted the exchange rate and inflation. “The Naira’s stability is not just a matter of national pride but a critical factor that affects every sector of our economy,” Opanachi stated, emphasizing the relentless efforts being made to find a resolution.
The lecture shed light on the historical context of Nigeria’s forex demand, describing it as a longstanding issue that has seen various strategies deployed by the CBN, albeit with limited long-term success. Opanachi highlighted the new management’s shift towards allowing market forces to play a more decisive role in determining the Naira’s value, moving away from artificially controlling the exchange rate.
Renowned economist Prof. Sam Olofin, the event’s keynote speaker, expressed skepticism about the CBN’s ability to control the foreign exchange market, pointing out the dominance of parallel market forces. “The foreign exchange market in Nigeria has evolved in ways that are outside the direct control of the CBN,” Olofin remarked, suggesting the need for a fresh approach to managing the currency’s value.
The Nigerian Economic Society’s President, Prof. Adeola Adenikinju, in his welcome speech, stressed the importance of consulting economists on the fragile economy. He highlighted how the exchange rate influences a wide array of prices within the economy, especially in an import-dependent context like Nigeria’s. Adenikinju called for a careful evaluation of policies before their implementation to avoid further destabilizing the market.
The event also featured comments from Prof. Antonia Simbine, Director General of the Nigerian Institute of Social and Economic Research, who emphasized the public’s demand for effective solutions to the ongoing economic difficulties. The Vice Chancellor of the University of Ibadan, represented by Prof. Olamakinde Olapegba (DVC Administration), was present, underscoring the university’s engagement with national economic issues.
