- Ban on foreign currencies: Nwoko wants to prohibit the use of foreign currencies, including the US dollar, in Nigeria.
- Compulsory use of Naira: He proposes making the Naira the only legal tender in the country.
- Sale of crude oil in Naira: Nwoko suggests that crude oil should be sold in Naira instead of dollars.
- Economic benefits: He believes this move will help strengthen the Naira and improve Nigeria’s economy.
Senator Ned Nwoko is pushing for Nigeria to ditch foreign currencies like the US dollar and pound sterling in favor of the local Naira. He believes this is key to achieving economic freedom and growth, pointing out that Nigeria gained independence from the UK in 1960 but still hasn’t achieved economic independence . Nwoko thinks that by promoting the Naira, Nigeria can reduce its reliance on foreign currencies and improve its economy.
He’s not wrong that a strong local currency is crucial for economic prosperity. After all, countries like the UK, US, and France primarily use their own currencies. But for the Naira to become a global currency, Nigeria needs to address some underlying issues, such as its economic freedom score, which affects its ability to attract investment and promote economic growth .
Some areas Nigeria could focus on include:
- Property Rights: Strengthening laws to protect private property and intellectual property rights.
- Judicial Effectiveness: Ensuring the judicial system is efficient and fair.
- Government Integrity: Reducing corruption and increasing transparency.
- Tax Burden: Implementing a fair and efficient tax system.
- Government Spending: Managing government expenditures to avoid budget deficits and public debt.
By addressing these areas, Nigeria can create a more favorable business environment, attract investment, and strengthen its economy. This, in turn, could help increase the value of the Naira and make it a more viable global currency.
