Financial experts have advised the federal government under President Bola Ahmed Tinubu on what to do to stabilize the Naira against the US dollar in the foreign exchange market.
The analysts spoke on the continued forex crisis, as Naira at FMDQ quoted N891.90 per dollar on Friday, while it stood for N1,420 per dollar on the black market the same day.
Reacting to the development, the Group Managing Director of Cowry Asset Management Company, Johnson Chukwu and The Head of Strategy at the Lagos Business School, Prof Olawale Ajai, said that ramping up the country’s crude oil production and sales is the silver lining to the nation’s forex crisis.
Chukwu said Nigeria going to the Eurobond Market to get a loan would have helped, but the country is already overburdened with debts.
“But as it stands today (Saturday), that window is narrow because we do not have the headroom for significant borrowing from the Eurobond market.
“I think the short route for now in our country is to improve crude production. That is the surest way to stabilize the Naira,” he said in a statement.
On his part, the Head of Strategy at the Lagos Business School, Prof Olawale Ajai, said the country must increase oil production to scale up its earnings.
“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 the Organisation of Exporting Countries said Nigeria’s oil production rose to 1.4 million bpd in December last year.
Meanwhile, the figure is down from the 1.9 million bpd projected by the Nigerian federal government.