FG should apply diversification approach method to control naira depreciation —Economist

AS the naira continues to depreciate in value, an economist, Dr Olaniyi Olayiwola, has stated that Nigeria should apply diversification approach method to control naira devaluation, adding that this will prevent concentration of resources on one sector of economy.

Dr Olayiwola, who lectures at Esep-Le-Berger University, Benin Republic, Cotonou, at the Faculty of Management Science, also said, in an interview with Nigerian Tribune, that Nigeria needs to restrict openness because it affects the balance of payment negatively, stating that the restriction should centre on import tariffs and quotas system.

Speaking on causes of naira depreciation, he stated factors such as failure in demand and supply, unstable inflationary and deflationary gaps, unstable government policies and persistent liquidity traps that discouraged investors and economy linkages in all sectors.

According to him, the exchange rate is the heart and foundation of development.

Stressing more on how naira devaluation can be controlled, he said motivation to support growth of domestic industries, business and investment was key.

He said that political and social stability will create a positive environment for investment to thrive and to consequently improve the exchange rate of the naira.

“Policy dialogue among scholars is crucial to improve economy,” he added.