Experts List Effects Of Dollar Scarcity, Proffer Solutions
Mr Wale Abe, the Executive Secretary of Financial Markets Dealers Association (FMDA), said the current scarcity of dollar and depreciation of the naira had lowered productivity in the country.
Abe told the News Agency of Nigeria (NAN) in Lagos that said the depreciation of naira at the parallel market had made some Nigerians to be unproductive.
He said that the multiplier effects of being unproductive were unemployment, under-employment and among others which had slowed down economic activities in the country.
“There is no doubt that the economy is generally slowing down leading to low productivity.
“Not having sufficient forex for production of finished goods could create unemployment and under-employment.
“The scarcity of dollars has resulted to lack of raw material inputs, thereby, leading to the gap in the productive enterprises.
“Sourcing for forex when there is scarcity is time wasting”.
He, however, said that the positive effect of the scarcity of dollar was that it had made Nigerians to redirect their efforts to other areas where foreign exchange were not needed for production.
Abe said that was because those areas were mainly the non-oil sector and which had the potential to change the nation’s over-dependence on crude oil
The executive secretary advised that there should be conscious efforts to see that the country did not go back to being a mono-product economy.
“I do not see anybody who can say he knows where the situation is going to lead to.
“No solution in the short time, but if oil prices picks up rapidly, the situation will change,” he said.
Abe said that it might not too good if the global oil price went up again because of the tendency for the country to forget it had efforts taken to look else where for foreign exchange.
Mr Johnson Chukwu, the Chief Executive Officer (CEO), Cowry Asset Management Ltd.in Lagos, expressed regret that the country had built up high demand for foreign exchange which had been shifted to parallel market.
Chukwu said that the black market had become the ruling market for importation of goods.
He said the country’s potentials were still intact, but the policies had kept investors away.
Chukar said that the country was doing demand management in resolving the foreign exchange crisis while supply management suffered.
President Association of Bureau De Change Operators of Nigeria (ABCON), Alhaji Aminu Gwadabe, advised government to consider strategic partnerships with other stakeholders in the sub sector.
Gwadabe said the move would help to save the naira from further depreciation.
He said all those involved in the supply market should be engaged against speculative activities in the sector. (NAN)
Mr Wale Abe, the Executive Secretary of Financial Markets Dealers Association (FMDA), said the current scarcity of dollar and depreciation of the naira had lowered productivity in the country. Infrastructure Wiring
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