Oil Dependence Caused Naira Devaluation- Emefiele

The Central Bank Governor Godwin Emefiele has explained why the Naira is on a free fall.

He said the country’s currency depreciated against the Dollar because the nation has nothing to export except oil.

Emefiele disclosed this during a career talk organised for the teenagers of Redeemed Christian Church of God (RCCG) at TEAP school, Abuja.

He spoke in response to a question by one of the teenagers.

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Gov.-Emefiele-of-CBN

He said over dependence on oil contributed largely to the current situation, stressing that when the oil falls, the naira falls.

The CBN Governor further stated that the only way out was to diversify the economy, which the federal government has commenced.

Emefiele, who was represented by his deputy, Sarah Alade, emphasised that the nation would grow economically when it produces, have more things to sell and export to earn dollars.

His words: “Our currency is naira but there are lots of things we buy but we cannot use the naira.

“We have to use dollars but do we earn dollar? We earn dollar when we have something to sell to people who have dollar so we can gain in Naira.

“In Nigeria, the only thing we have is oil. So when the prices of oil fall, everything falls.

“We then have less dollars and in that case, those who want the dollar will then need more naira to be able to meet the demand.

“Those who did economics will know that the price is determined between supply and demand.

“So if the supply for dollar is very low and the demand for dollar is high, the price of naira will be low.

“So as a country, we should have more goods to sell and export so that we can have enough dollars for supply and the naira can grow.”

He encouraged youths to embrace entrepreneurship skills to create jobs and export goods.

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Daniel Enisan is a content writer at edliner.com. With a degree in mass communication, Daniel is a full breed journalist. Daniel is a realist, loves the use of sarcasm, a movie and music junkie. He is also a poet and a good listener.

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