Kingsley Moghalu Criticizes Unrealistic Naira Expectations, Calls for Focus on Productive Economy

 

Former Deputy Governor of the Central Bank of Nigeria, Kingsley Moghalu, has criticized the expectation for the naira to stabilize at N400 to the dollar, calling it unrealistic. In a series of posts on his X account on Sunday, Moghalu argued that the exchange rate should reflect its market value in reality, not an artificial rate.

Moghalu stated that maintaining an artificial exchange rate, as attempted during the Emefiele era, created room for massive arbitrage by speculators, which harmed the economy. He emphasized that Nigeria does not yet have a productive export economy and lacks sufficient foreign reserves, making a return to a lower forex rate unlikely in the near future.

He highlighted the need for Nigeria to focus on creating a value-added manufacturing export economy to earn forex beyond oil. Moghalu emphasized the importance of addressing the electricity challenge, as Nigeria's current low power generation hampers economic growth and entrepreneurship.

Moghalu concluded by stating that improving power generation could unleash the potential of the Nigerian entrepreneurial spirit, leading to economic growth and stability.