Dr. Tope Fashua, the Chief Executive, Global Analytics Company Limited, has revealed that the Central Bank of Nigeria (CBN) can make the naira strong with agriculture.
In a paper titled, “The Agricultural Sector in Nigeria: Survival, Food Security and a Key Buffer for the Naira,” delivered at the just concluded 32nd CBN Seminar for Finance Correspondents & Business Editors, Fashua noted that agriculture remains a veritable tool for strengthening the local currency.
According to the expert, the farming sector has the potential to generate the much-needed funds to make the country’s reserves much stronger.
Speaking further, Fashua maintained that the value of the naira is tied to patriotism and nationalism, stressing that, “a lot of the value of your currency is made up of perception actually – what do people think about the currency? If those who hold the currency don’t have confidence that currency is in trouble.”
“When you fix your currency and say you are going to defend currency at a certain rate. What happens is that speculators move against you, they move against your reserves and they will ensure that you empty your reserves and that means you have to drop that rate and that means they have shorted your currency. And when short your currency that means you are selling that currency and moving it to a stronger currency,” he added.
What you should know about the agric sector
- Nigeria’s Agriculture sector grew by 3.58% (year-on-year) in the 4th quarter of 2021, an increase of 2.36% points from the preceding quarter which recorded a growth rate of 1.22%.
- The sector contributed 26.84% to overall GDP in real terms in Q4 2021, lower than the contribution in the fourth quarter of 2020 and lower than the third quarter of 2021 which stood at 26.95% and 29.94% respectively.
- The NBS revealed that four sub-activities make up the Agricultural sector: Crop Production, Livestock, Forestry and Fishing, adding that the agricultural sector in the fourth quarter of 2021 grew by 3.58% (year-on-year) in real terms, an increase of 0.16% points from the corresponding period of 2020, and an increase of 2.36% points from the preceding quarter which recorded a growth rate of 1.22%.
