Professor Ndubuisi Ekekwe, an esteemed entrepreneur and lecturer at the Tekedia Institute Faculty, has voiced concerns over Nigeria’s rapid depletion of foreign reserves in a bid to defend the Naira. Drawing on Igbo wisdom, Prof. Ekekwe emphasized the importance of strategic foresight in addressing the underlying challenges facing the nation’s economy.
“In the Igbo Nation, the elders will say that ‘a bird which flew from the ground only to perch on an ant-hill is still very much on the ground,'” remarked Prof. Ekekwe. “This analogy underscores the reality that Nigeria’s reliance on foreign reserves to bolster the Naira is akin to short-term solutions that fail to address deeper structural issues.”
Recent reports indicate that Nigeria’s Central Bank is grappling with the fastest decline in foreign-exchange reserves in four years, sparking concerns about the sustainability of the country’s economic stability. Prof. Ekekwe cautioned against solely relying on depleting reserves to shore up the Naira, stressing the need for a comprehensive long-term strategy.
“While draining foreign reserves may provide temporary relief, it is imperative to consider the ramifications once these reserves are exhausted,” noted Prof. Ekekwe. “True economic resilience lies in fortifying the Naira through sustainable policies that stimulate domestic production and employment growth.”
Highlighting Nigeria’s potential to navigate currency challenges, Prof. Ekekwe underscored the importance of endogenous policies aimed at bolstering the Naira from within. He emphasized the critical role of the Central Bank in not only managing inflation but also fostering employment opportunities through strategic interest rate management.
“For far too long, Nigeria has overlooked the imperative of nurturing domestic industries and fostering employment,” observed Prof. Ekekwe. “To achieve lasting economic stability, we must prioritize policies that promote industrial growth and address youth unemployment.”
As Nigeria confronts the complexities of currency defense and economic resilience, Prof. Ekekwe’s insights serve as a timely call to action for policymakers and stakeholders to adopt a holistic approach towards achieving sustainable development and prosperity.
