BusinessHighlight

Nigeria lacks sufficient reserves to tackle FX demands, backlog in the market, says expert

“There have been reforms, but the body language of the government, in my opinion, speaks otherwise," Persecondnews quotes him as saying.

1.2k

An economist, Mr. Esili Eigbe, has said Nigeria lacked sufficient reserves to tackle the demands for foreign exchange and the backlog in the forex market.

Eigbe, who disclosed this in an interview with Arise TV on Thursday, monitored by Persecondnews, urged President Bola Tinubu to take a look at serious physical consolidations.

Shedding light on the ongoing challenges faced by the nation in managing its currency and economic stability, he noted that despite the government’s commitment to implementing reforms aimed at resolving the FX issues, there appears to be a contradiction in their actions.

He said: “I think it is very early, and I think we don’t have sufficient reserves to tackle the demands or backlog of FX in the market.

“A lot of reforms have taken place on the monetary side; in my opinion, I guess the first step is addressing the issue and potential inflation.

“So, I think there is no silver bullet. It is going to take time—perhaps years—to manage the currency situation and inflation. If you are looking for examples of countries where you have seen similar situations and how they have handled them, we will look at places like Argentina, Venezuela, and so on.

“One lesson that Nigeria needs to learn from these countries is that you need to move very quickly to be ahead of the problem.”

“I will suggest, in the context of President Tinubu’s discussion on Wednesday, that I think it is important that Nigeria really begins to look at serious physical consolidations.

“There have been reforms, but the body language of the government, in my opinion, speaks otherwise,” Persecondnews quotes him as saying.

Eigbe, who is also the Director of Escap Management, called on the President to develop a plan to salvage the situation of the economy and put it on a path of freedom in the coming years.

“It will be a fair assumption to expect more suffering in the next couple of months; it could even be two years. Like I said, there is no silver bullet, and we are going to have to take the pain for possibly two to three years.

“We need to put together a plan, a development plan for this country, which I haven’t seen yet.

“If I were the president, this is an opportunity for me to just clean the slate, put Nigeria on a path, and put forward a development plan that would get Nigeria to where it needs to be, perhaps 30 years from now.

“He doesn’t need to be the one who completes the job, but at least the guy who starts that process,” he said.

Leave a comment

Related Articles

Just in: FG announces reshuffle of governing councils at FUOYE, Kogi varsity

The Federal Government has made changes to the governing councils of Federal...

Exclusive: Eguavoen Opens Up on Declining NFF Contract Extension, Reveals Reasons

Super Eagles Coach, Austin Eguavoen, has revealed why he declined the Nigeria...

Boost for Nigeria’s Oil Production As NNPC’s Utapate Crude Grade Hits Global Oil Market

In a major boost for Nigeria’s crude oil production, revenue generation, and...

Just in: FG sacks varsity Pro-Chancellor for misconduct

The Minister of Education, Dr. Tunji Alausa, has announced the removal of...

Just in: INEC presents Certificates of Return to Ondo Gov. Aiyedatiwa, deputy

The Independent National Electoral Commission (INEC) has presented Certificates of Return to...

Breaking: Senate sacks Danladi Umar, Code of Conduct Tribunal chairman  

Following proven allegations of gross misconduct and unacceptable behaviour, the Senate on...

Just in: South Africa takes over G20 Presidency from Brazil, first African nation to lead the bloc

South Africa has taken over the presidency of the G20 from Brazil,...

Tinubu submits 3 INEC REC, federal commissioner-nominees for Senate’s approval

President Bola Tinubu has sent the name of Ondo Resident Electoral Commissioner,...

Just in: After a night in custody, DSS in Ogun releases Ladi Adebutu

Mr. Ladi Adebutu, the 2023 People’s Democratic Party (PDP) governorship candidate in...

Senate holds valedictory session for late Sen. Ifeanyi Ubah

The Nigerian Senate suspended its plenary session on Tuesday to pay tribute...

Three days after Ogun council poll, DSS arrests Ladi Adebutu, 2023 PDP’s guber candidate

The Department of State Services (DSS) in Ogun State has arrested the...

Russian Pres. Putin signs decree for nuclear retaliation against non-nuclear states

Russian President Vladimir Putin on Tuesday signed a decree allowing Moscow to...

International students in US: Nigeria ranks 7th worldwide, leads in Africa

Nigeria has emerged as the seventh-largest source of international students in the...

Pres.Tinubu redesignates three special media advisers spokespersons for government

President Bola Tinubu has re-designated the positions of two recently appointed officials...

FirstBank Hosts First-ever China-Africa Interbank Association Forum

FirstBank, the premier West African financial institution and financial inclusion service provider,...

Falana to FG: Restore Baruwa as NURTW’s Preside

Mr. Femi Falana (SAN) has asked the Federal Government to reinstate Tajudeen...

Tax reform bills: Lawmakers call governors’ bluff, pledge support for Tinubu – Reps deputy spokesman

The deputy spokesman for the House of Representatives, Philip Agbese (APC-Benue), said...

Nov. 16 Ondo guber poll: PDP to review exercise, alleges vote rigging, manipulations

Dissatisfied with the November 16 governorship poll, the People’s Democratic Party (PDP)...