CBN Artificial Solution

As the Central Bank of Nigeria injects  $370 million into the Nigerian economy to strengthen the Naira, experts are not quite sure of the direction of such policy. A lot of them see this move by the Apex body, as a temporary solution, because none of it is geared towards the productive sector of the economy.

The only people that have been affected the most in this current CBN policy has being manufacturers. But the most people getting these dollars are importers, those on medical tourism and students schooling abroad. All of which contributes nothing tangible to the economy.

So much have being said about us coming out of recession in 2017, one of which is coming from the minister for budget and national planning Udo Udoma.

But I don't see where that optimism is coming from. Yes, we have started exporting oil at our optimum again, since the calming of the Niger Delta Militants. But oil prices haven't risen in the past 6months.

The only reason why our reserve grew was because of the ban placed on importation of some items and the stringent forex policy, which adversely affected the Naira and curbed liquidity, gave the dollar a landmark.

For all we know the move is a temporary one. If we continue like this, our worst fear will happen, which is the depletion of our foreign reserve. If we need citation about that, we can ask Venezuela for it.

We need to continue encouraging production of our own. It will not totally reduce the naira, but it will create jobs for the common man and taxes for the government.