Naira to Dollar Exchange Rate: Former Adviser to MKO Abiola Offers Solution to Inflation
- Akib Abiola, former adviser to Chief MKO Abiola, has critiqued the impact of exchange rate-driven inflation on Nigeria's economy, pointing out that local goods are being priced based on the Naira to dollar exchange rate
- He stresses the need for an economic environment where the Naira circulates within Nigeria's economy multiple times before being exchanged for foreign currency
- Abiola, with his extensive background in economics and finance, calls for reforms to prevent the adverse effects of artificial inflation on local pricing and economic stability
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Akib Abiola, former adviser to Chief MKO Abiola and a founding member of the defunct National Democratic Coalition (NADECO), has raised concerns about the impact of exchange rate-driven inflation on Nigeria's economy.
In a post on X dated December 10, 2024, Abiola highlighted how artificial inflation is adversely affecting local pricing and economic stability.
Source: Twitter
Exchange Rate and Local Pricing
Abiola pointed out that farmers and livestock producers are pricing their goods based on the Naira to dollar exchange rate.
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"Farmers are pricing their yams based on the exchange rate of Naira to dollar. Chickens, cows, rams, goats, and even bush meats are being priced based on exchange rates," he stated.
Abiola questioned the rationale behind this practice, asking, "Is the land on which the yams are grown and corns being fed these animals in America?"
Call for Economic Reform
Abiola emphasized the need for an economic environment where the Naira earned by local producers remains within the Nigerian economy and circulates multiple times before being exchanged for foreign currency.
"We must cultivate an economic environment whereby the Naira received by local producers remains in Nigerian economy and circulates a minimum of ten times before it is exchanged for foreign currency for imports & capital flight," he urged.
Background and Expertise
With an MA in Economics and an MBA in Finance, Abiola brings a wealth of knowledge to his critique.
His experience as an adviser to Chief MKO Abiola and his role in NADECO proves his deep understanding of Nigeria's economic and political landscape.
See his X post below:
New Exchange Rate As Dollar Sells Cheaper
Previously, Legit.ng earlier reported that the value of the Nigerian currency, the naira, strengthened in the foreign exchange markets against the United States dollar.
According to data from FMDQ Securities, the naira's value in the Nigerian Autonomous Foreign Exchange Market (NAFEM) closed at ₦1,643.15/$1 on Tuesday, 3 December 2024.
Source: Legit.ng
