The Securities and Exchange Commission (SEC) has advocated for the harmonisation of the exchange rate to enable more foreign investment in the country.
Mr. Dayo Obisan Executive Commissioner (Operations) at the SEC who stated this at the Nairametrics Economic Outlook webinar said that the lack of rate harmonisation in the foreign exchange market was hurting Nigeria’s ability to attract foreign capital.
He however expressed optimism that the Central Bank of Nigeria was gradually working towards achieving a unified exchange rate policy.
What the SEC is saying
Obisan who represented the Director-General of the SEC, Lamido Yuguda, noted that floating the currency and allowing the forces of demand and supply to set the price would have been the ideal strategy.
- “Non-harmonisation of exchange rate is killing foreign portfolio investment (FPI) in the country, proper harmonisation of the exchange rate will create confidence and clarity in the economy,” he said.
- He noted that the implementation of the National Development Plan will help to achieve economic growth in the country.
- “The task before the authorities is the proper implementation of the National Development Plan. We should work very hard towards import substitution. There should be sustainable productivity to give the country a leap in its quest for economic growth,” he said.
Obisan said productivity would alleviate poverty in Nigeria, adding that a lot of policies have been put up, but the issue usually is the implementation of those policies.
Speaking on what will stop oil theft in the Niger Delta region, the Managing Director of Cowry Asset Management Limited, Mr. Johnson Chukwu said the government needs to engage the habitat of the oil-bearing assets.
- He said, “We tried some strategies in the past which didn’t work. We need to bring development to those areas. We need to create value for them, as it stands today, we are expecting value from them, but they are not getting appreciable value from the government. Without giving them value from the crude that is tapped from their backyard, it will be difficult to bring harmony to the oil-troubled region.
- “Oil theft in the region has remained unabated because they are not getting appreciable value from the authorities. Government should develop the area with good infrastructure and education to make life worth living for them.”
