President Bola Tinubu’s Special Adviser on Economic Matters, Tope Fasua, has remarked that the naira’s floating has considerably increased the affordability of local goods while also bolstering Nigeria’s e-commerce sector.
Fasua made this claim during an interview with Arise TV, which was monitored by THE POINT.
He described the Central Bank of Nigeria’s decision to float the naira as a deliberate economic strategy.
In June 2023, the CBN implemented a floating exchange rate policy, leading to a depreciation of over 95% against the naira, as reported by KPMG.
As of December 25, 2024, the naira traded at N1538 per dollar and N1637 on the parallel market.
Fasua explained, “As a matter of strategy, the naira was floated to remove arbitrage opportunities that people had been enjoying. The naira is now looking plenty.
“But there’s also what is called the purchasing power parity, meaning that if you focus on the naira, you can do a whole lot more.”
He highlighted that the policy has made foreign goods more expensive, encouraging Nigerians to focus on locally-produced substitutes.
“If you’re using that naira to purchase foreign things, which are demonstrated in other currencies, then you’re going to have a problem.
“But if you focus on the naira, you’ll realize you can buy more locally. Today, a lot of people are shopping locally,” Fasua said.
Fasua also emphasized the policy’s impact on e-commerce and entrepreneurship in Nigeria.
“E-commerce has become a big thing. Most people, whatever it is you’re putting on today, you can get it online in Nigeria to be delivered to you. You don’t even have to leave your house.
“In fact, if you look at it further, look at the Aba area. You’ll see a lot of products moving into Cameroon, Gabon, DR Congo, and other places,” Fasua said, emphasizing the regional export opportunities created by local production.
He added that the floating of the naira has spurred entrepreneurial efforts, enabling Nigerians to produce and supply their own needs.
