Financial experts and analysts are pointing to the surge in the dollar to naira rate, attributing it to the heightened foreign exchange demands for payment of school fees abroad.
Tajudeen Olayinka, CEO of Wyoming Capital & Partners, expressed concern over Nigerians’ penchant for foreign goods, noting its role in the devaluation of the naira.
Olayinka remarked, “It is not the main factor but it’s a contributing factor. Even though lots of foreign students have parents who can sustain them by sending money from Nigeria, that can be a factor, but it’s not a major factor.”
He emphasized the need to patronize Nigerian institutions and support the production of quality locally made goods, stating, “Poor and substandard education is part of the reasons our people are traveling abroad to acquire qualitative education, putting so much pressure on our currency. We need to get some things right to strengthen our naira.”
Addressing the broader issues affecting the naira’s value, Olayinka pointed to the importation of finished goods and raw materials, stressing the significance of reducing reliance on imported goods and promoting made-in-Nigeria products.
In a confirmation of the challenges in the foreign exchange market, a Bureau De Change Operator known as Abu Dollar highlighted the significant demand for dollars coupled with insufficient supply. He remarked on the prevailing conditions, stating, “There has been a huge demand without enough supply of dollars.”
These statements underscore the complexities contributing to the current currency situation, urging a comprehensive approach to strengthen the naira.
