Babs Adesanya
As Nigeria grapples with the challenge of the dollar against the Naira, the role of legislators becomes necessary in crafting solutions. Through effective legislation and policy frameworks, Nigerian lawmakers can contribute significantly to stabilizing the exchange rate, fostering economic growth. Here are some ways the National and State Assemblies can achieve these.
Enhancing Monetary Policies:
Legislators can collaborate with the Central Bank of Nigeria (CBN) to enact laws that bolster monetary policies aimed at curbing the dollar’s surge. This may involve tightening monetary controls, implementing exchange rate stabilization mechanisms, and promoting fiscal discipline to restore confidence in the Naira.
Promoting Export Diversification:
Legislation can incentivize the diversification of Nigeria’s export base, reducing reliance on oil revenues and mitigating the impact of currency fluctuations. By supporting industries such as agriculture, manufacturing, and technology, legislators can foster economic resilience and reduce vulnerability to external shocks.
Strengthening Trade Agreements:
Legislators can advocate for the renegotiation of trade agreements to promote fair trade practices and protect domestic industries from currency manipulation by trading partners. Additionally, legislation can facilitate the establishment of bilateral currency swap arrangements to enhance liquidity and stabilize exchange rates.
Encouraging Foreign Investment:
Legislation can create a conducive environment for foreign investment by enacting investor-friendly policies, improving regulatory frameworks, and enhancing transparency and accountability. By attracting foreign capital inflows, Nigeria can bolster its foreign exchange reserves and alleviate pressure on the Naira.
Enhancing Fiscal Discipline:
Legislators play a crucial role in overseeing government spending and ensuring fiscal discipline. By enacting laws that promote prudent fiscal management, transparency, and accountability, lawmakers can mitigate macroeconomic imbalances and restore investor confidence in the Nigerian economy.
In the face of the dollar’s ascent against the Naira, Nigerian legislators have a critical role to play in implementing effective policies and enacting legislation that fosters economic stability and growth. By collaborating with stakeholders, prioritizing fiscal discipline, and promoting diversification and investment, lawmakers can contribute to controlling the dollar’s rise and laying the foundation for a resilient and prosperous economy.
LV