Nigeria needs competitive exchange rate to boost local production — Soludo

Anambra State Governor, Chukwuma Soludo, has urged Nigeria to maintain a competitive exchange rate over the next decade to strengthen local production, expand exports and make Nigerian goods more competitive in international markets.

Soludo said the country should target a real effective exchange rate (REER) undervaluation of between 25 and 30 per cent annually over the next 10 years, cautioning against celebrating excessive appreciation of the naira.

He spoke on Monday during a panel session titled ‘Growth That Works: Building a New Economic Accord for Nigeria’ at the 32nd Nigerian Economic Summit.

The former Central Bank of Nigeria governor said although macroeconomic stability had returned, the government must sustain reforms and focus on building a productive economy.

“The macroeconomic framework, the stability that is back must never be taken for granted,” he said.

Soludo also called for increased patronage of locally manufactured goods, arguing that domestic demand for Nigerian products could generate millions of jobs.

“If we all eat and wear what we produce in Nigeria, more than 10 million jobs will be created,” he said, citing his use of locally produced Akwete fabric as an example of supporting domestic industries.

The summit also heard concerns about Nigeria’s limited progress in export diversification.

Chema Triki, co-founder and managing director of Growth Teams, said Nigeria had added only nine new products to its export basket since 2007.