Free Fall of Naira: Expert Calls for Radical Monetary Policies

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BY AYO ABERE in Ado Ekiti•

For Nigeria to address the persistent fall of the naira against other currencies and boost its economy, federal government must adopt some radical monetary policies.

One of these policies is for the federal government to change the current denominations from naira to kobo.

This is part of the submissions of a professor of Agriculture at the Federal University of Agriculture Abeokuta Ogun State, Philip Adetiloye, while speaking in Ado Ekiti with pressmen on the nations monetary policies.

Professor Adetiloye who faulted the past policies of government particularly since 1999 argued that if the current denominations was changed to kobo automatically the implication was that the dollar which stands at three hundred and sixty naira will be changed for three hundred and sixty kobo hence the nation’s currency would become more valuable than the dollar.

He said in the process of adopting such system both the old denominations in naira and the new ones in kobo would be spent simultaneously until a gradual withdrawal of the old notes.

According to Adetiloye if Nigeria continues without making move to re-evaluate its naira in another twenty years, a dollar might be changed for a thousand naira, a situation that he said, would ruin the nations economy.

Adetiloye who hails from Ise Ekiti also stressed the need for better industrialisation of the country and high investment in technology to enhance the country’s production thus reducing importation rate and building the economy.

He added that there must be regular review of wages and salaries rather than a periodic process, which he claimed, had given room for inflation.

Other suggestions by the professor includes the need for federal government to create an enabling environment that would encourage entrepreneurship, pay better salaries to avoid migration of best brains to European countries and invest in human capital development.

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