FG Urged to End Dollarisation of Nigeria’s Economy

Adedayo Akinwale in Abuja

A financial expert, Dr. Emmanuel Ozigi has urged the federal government to take urgent steps to reduce the dominance of dollar in economic transactions in Nigeria.

Ozigi, who made the call during the official launch of the business operation of Kabimya Finance Company Limited (KFCL), in Abuja, yesterday, said the free fall of the naira was frustrating Nigerians.

His words: “You cannot have a free for all policy where there are no regulations. Because there is no economy that thrives on a free market policy where everybody determines, or the forces of the market determines.

“Some of the policies as in the case of Nigeria are not realistic. The effect will be heavy on the common man. That is why the implications of the free for all policy we have now is more on the common people who do not have access.

“That is why we are saying it should be regulated. At the same time, government should be looking at how to reduce the dollarisation of our economy because we cannot continue to dollarise every of our activity. When you dollarise everything, it makes it difficult for you to improve your economy locally.

“That is why we cannot compete internationally. So as much as possible, we should reduce the dollarisation of our commodities, activities and services.”

Ozigi stressed that everyone can see the micro-economic effect of unregulated economy in less than last 60 days — in terms of inflation, standard of living and livelihood.

According to him, “an economy should be driven and should have drivers of the economy who will point the direction of how it should go.

“Now that it is the force of demand and supply that determines the exchange rate. I can decide to hoard and release when I know there is heavy demand. These are the implications of not having a regulated economy.”

Against this background, Ozigi called for urgent review of the Central Bank of Nigeria (CBN) free floating policy of the naira, stressing that allowing the exchange rate unregulated would worsen the situation.

Speaking on the impact of KFCL, added that the firm would assist the Nigeria business community especially the Small and Medium Enterprises (SMEs) by providing serviceable credit facilities and jobs to the teeming unemployed youths.

He also said they the firm would give risks management advise to help the business of their customers grow.

Ozigi said: “Our mission is simple: to empower our clients to achieve their financial goals and secure their financial future. Through a comprehensive range of products and services, we will be offering tailored solutions that cater to every stage of our clients’ lives from investment planning and wealth management to lending solutions and risk management strategies.”