By Mohammed Bello Doka
In the midst of Nigeria's economic challenges, the decision to float the naira has come under scrutiny, with critics highlighting its adverse effects on the nation's financial landscape. Jackson Omolewa, echoing the sentiments of many Nigerians, expressed deep concerns regarding the policy's impact on the economy.
According to Omolewa, the narrative surrounding the floating of the naira as a means to attract foreign direct investment (FDI) has failed to materialize over the years. He questioned the logic behind persisting with a policy that has not yielded the promised benefits, emphasizing the need for a reassessment.
Reflecting on past leadership eras, Omolewa lamented the contrast between the relative stability of the naira under military regimes and the current economic turmoil. He attributed this stability to the leaner government structures of previous administrations, contrasting them with the bloated bureaucracy of the present.
During the regime of leaders like Abacha, Babangida, and Abdulsalam, the focus was on efficiency and prudence, with a streamlined government apparatus. In stark contrast, the current administration under Asiwaju Tinubu has seen a proliferation of ministries, parastatals, and bureaucracies, leading to excessive government spending and inefficiency.
"The less educated military heads of state were able to maintain a stable and valuable naira because they ran a fairly lean government," Omolewa remarked. "There was no garrulous National Assembly, over 5000 bureaucracies, or excessive globetrotting by ministers and agency heads."
The policy of floating the naira, initiated by CBN Governor Olayemi Cardoso, has exacerbated the devaluation of the currency, leading to a surge in poverty levels. Omolewa emphasized the urgent need for a review of this policy, asserting that its continuation would only deepen the economic woes facing Nigeria.
Moreover, amidst pervasive insecurity and kidnappings, Nigeria's production capacity has dwindled, further complicating efforts to diversify the economy away from its dependence on oil. Omolewa warned of dire consequences if the current trajectory persists, projecting a potential devaluation of the naira to N7000 against the dollar by the year's end.
In light of these challenges, there is a resounding call for the government to halt the policy of floating the naira and implement measures that prioritize the well-being of Nigerians. As Omolewa aptly summarized, without a shift in the approach to governance and economic management, Nigeria risks being trapped in a cycle of economic turmoil and instability.
The sentiment expressed by Omolewa resonates with many Nigerians who are feeling the pinch of the depreciating naira and the broader economic challenges facing the nation. As calls for policy review grow louder, the future trajectory of Nigeria's economy hangs in the balance, with decisive action needed to steer the country towards stability and prosperity.
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