Real Reason Behind The Depreciation Of Naira – Senate

The Nigerian Senate, through its Committee on Finance, has offered explanations on why the Nigerian Naira keeps depreciating against other currencies, while also proffering measures that must be taken to address the challenge.

In a statement personally signed by the Chairman, the Senate Committee on Finance, Mohammed Sani Musa, said even though the country continues to navigate on getting the nation and economy back on track, external and internal forces are behind naira depreciation.

I am issuing this statement to address the current state of the economy and the need for concerted efforts at tackling the instability and continuous depreciation of the Naira.

“The Nigerian economy is facing significant challenges, exacerbated by both internal and external factors.

“Despite efforts to stabilise and bolster economic growth, the numerous initiatives and bold but necessary steps and policy decisions taken by President Bola Ahmed Tinubu GCFR, the persistent depreciation of the Naira against major foreign currencies has become a pressing concern,” Musa said.

According to the Senator, “the recent depreciation of the Naira underscores the need for proactive measures to safeguard the stability and resilience of our currency. The Senate Committee on Finance is closely monitoring the situation and is committed to working collaboratively with relevant stakeholders to implement effective policies and strategies.

Read Also: Confusion As Dollar Demand Pushes Naira To ₦1,420/$

“It is imperative that we address the root causes of Naira depreciation, including but not limited to fluctuations in global oil prices, fiscal deficits, and structural imbalances in the economy.

“Furthermore, we must continue to enhance transparency and accountability in our fiscal management processes to instill confidence in investors and promote sustainable economic growth,” Musa said of the Nigeria naira problem.

To find a solution to the depreciating naira, Musa said the Senate Committee on Finance is exploring a range of policy options to mitigate the impact of Naira depreciation and foster economic stability.

This includes robust oversight of fiscal policies, engagement with key stakeholders, and the formulation of targeted interventions to support key sectors of the economy.

“It is also the hope of the committee that our economic managers will adhere strictly to the norms and standards set by this administration to ensure that we achieve the desired outcomes in taking Nigeria to its economic growth and prosperity. As we pledge to give Mr. President and his executive arm of government every opportunity and support in legislation to achieve the set goals.

“As we navigate these uncertain times, I urge all Nigerians to remain vigilant and resilient. Together, we can overcome the challenges facing our economy and chart a path towards prosperity for all,” he added.

Africa Today News, New York

Leave a Reply

Your email address will not be published. Required fields are marked *