Olufemi Adeyemi
Lagos Chamber of Commerce and Industry (LCCI) has forecasted a potential appreciation in the value of the Naira against the US Dollar, with an estimated exchange rate of N1,000 per Dollar.
The President of the Lagos Chamber of Commerce and Industry
(LCCI), Gabriel Idahosa, held a press conference in Lagos to discuss the
current state of the economy.
He mentioned that there is a chance for the Naira to
increase in value by the end of the year. Factors such as the anticipated
billions of dollars from marginal oil fields sales, reaching a higher oil
production level, and a potential rise in oil prices could contribute to
boosting supply to unprecedented levels and supporting the Naira's appreciation
towards the N1000 threshold.
He, however, Implored the monetary authorities to reevaluate
the free-floating exchange rate.
In his expert opinion, the depreciation of the Naira was
primarily caused by a limited supply of foreign currencies in the market.
However, speculative activities also played a significant role in distorting
the true value of the Naira.
“Before the end of the first quarter, the Naira firmed up
due to some FX policy reforms undertaken by the CBN. The CBN needs to sustain
its interventions and improve supply in the FX market, adopt policies that
would attract more FX inflow into the economy, and build market confidence in
the performance of the Naira even in the long run.”
He also mentioned that the Naira's value has been
continuously decreasing due to factors such as low supply, uncertainties, and
rising demand in the foreign exchange market.
He emphasized the importance of not only providing
infrastructure, but also establishing a strong regulatory and policy framework
to encourage increased foreign investment in the power sector. He suggested
creating an environment that would attract foreign investors to establish
renewable energy facilities in Nigeria, in order to enhance the country's
energy transition and decrease reliance on the national hydro grid, which has
been experiencing frequent outages in recent months.