Yakubu Dogara, a former Speaker of the House of Representatives, has put forward a proposal to address the depreciation of the Nigerian naira by tapping into “idle” foreign exchange reserves held in private vaults.
Speaking at The Platform Nigeria, an event organized by Covenant Nation to commemorate Democracy Day 2024, Dogara emphasized the need to strengthen the wobbling naira through this approach.
During the event, themed “Democracy and the Free Market Economy,” notable figures such as Anambra State Governor Chukwuma Soludo, former Minister of Works Babatunde Fashola, and Bishop Matthew Hassan-Kukah of the Catholic Diocese of Sokoto were also present.
Dogara expressed concern over Nigerians’ insatiable demand for the United States dollar (USD), attributing the steady decline in the value of the naira to this phenomenon.
He noted that most transactions, both legitimate and illicit, are conducted in USD, making it the preferred currency for Nigerians. He stressed that unless this appetite for USD is curbed, significant improvement in the value of the naira cannot be achieved.
With the naira’s depreciation from approximately N800/$1 in May 2023 to around N1,500/$1 at present, Dogara highlighted the loss of confidence in the naira as a reliable store of value. He urged the government to take swift action to restore public trust.
In Dogara’s view, the right solution lies in unlocking the USD reserves held in private vaults within Nigeria and redirecting them towards strengthening the country’s economy, thereby stabilizing the foreign exchange rate. He argued that Nigeria possesses a substantial amount of USD that can be utilized for this purpose.
Furthermore, Dogara proposed a policy shift wherein crude oil exports would be sold in naira rather than in dollars. He advocated for a reciprocal arrangement, similar to how Nigeria pays for imports in foreign currency.
He argued that demanding payment for Nigerian exports in naira could contribute to the stability of the currency.
Additionally, Dogara urged security agencies to investigate and identify politicians and prominent individuals hoarding USD in private vaults.
He suggested that if these individuals fail to comply or respond, President Muhammadu Buhari should consider implementing measures similar to the approach taken by Mohammed bin Salman Al Saud in Saudi Arabia.
According to Dogara, individuals who have taken advantage of the system should not have the liberty to hoard an excessive amount of USD that could otherwise be used to address the pressing needs of the country and uplift millions of people out of poverty.
