AT a recent meeting, the Federal Government called upon the Central Bank of Nigeria (CBN) to come up with a new policy to reverse continued depreciation of the naira. That call was long overdue; given the fact naira depreciation has little or nothing to do with fundamentals of the Nigerian economy. Very soon unless urgent appropriate policy action is taken, the naira currency note will not be worth the paper on which it is printed. Then the fortunes of all Nigerians, rich and poor, and particularly pensioners, fixed salary earners and savers will so decline that it will be an uphill task to keep body and soul together. Further Naira depreciation inevitably ushers in a period of hyperinflation which undermines economic social and political stability this should be avoided by all means.
However, asking CBN to come up with new ideals will not help at this time because CBN believes that the current problem of Naira is one of shortage of foreign exchange to satisfy the seemingly insatiable appetite of Nigerians for foreign goods and services. The problem is more complex than that. It involves existence of major structural defects in production of goods and services which have now reached crisis proportions. Merely seeking balance in supply of, and demand for, foreign exchange through currency depreciation is no longer adequate.
An appropriate solution requires identification of the causes of Naira depreciation, changing attitude of stakeholders in both the real and financial sectors and clear specification of a holistic strategy for resolving the current economic crisis. The problem now confronting the country is how to identify experts whose professional training and experience can suggest a credible and realistic solution. Definitely experts from the international financial institutions; who are still calling for further depreciation of the Naira, would come up with solutions that aggravates the currents status of the Nigerian Economic Summit Group, that for decades have supported and indeed promoted inappropriate economic advice from external sources, now has nothing useful to suggest to turn the fortunes of the Nigerian economy around. Can we turn to the civil services for useful ideals and collaboration with brilliant economists as was the case when such leading lights as Alison Ayida and Philip Asiodu guided the Nigeria economy to middle-income status before the series of military coups starting in 1975 deranted the economy? Unfortunately, a series of premature retirement of seasoned and efficient civil servants at federal and state levels denuded the civil service of experts that would have helped Nigeria get out of its current economic difficulties. Where, again, ask do we turn to for help and salvation? We cannot invite from heaven such distinguish economists as Professor H.M.A Onitiri and Professor Sam .A. Aluko who played admirable roles in the development of the Nigerian economy through appropriate economic analysis and advice at times similar to the present. As I was trying to identify Nigerians who are qualified to help Nigeria out of its economic problems, my eyes fell in a book of a reading put together by some Nigerian economists in honor of H.M.A Onitiri published in 2005 titled:Contemporary Issues in the management of the Nigerian Economy. Some of the contributors to this important book of reading are experts in the specializations of international finance, international trade and monetary Economics. Fortunately or unfortunately, depending on your perspective, they are all retired, though still intellectually active as lecturers and researchers. However, they are not politicians in the sense that they do not belong to any political party. Moreover they come from part of the country not usually considered for appointive positions in government. But am sure that if they are identified and invited to come up with a realistic blueprint for getting Nigeria back to the part of non-inflationary growth providing sustainable employment opportunities for Nigerians willing and able to work, I am confident that they ( not more than ten (10) ) will not turn such request down.
- Professor Osagie of Benson Idahosa of University, Benin City, is a former Director of Research, National Institute for policy and Strategic Studies, Kuru.
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