Nigerians Should Export More To Increase FOREX Income – Economist
By Joy Odigie
Benin, June 24, 2021 Economist Professor Mike Obadan urged Nigerians to become more involved in exporting goods and services than importing to increase the country’s foreign exchange earnings.
Obadan, a non-executive director of the Central Bank of Nigeria (CBN) made the call in an interview with the Nigerian News Agency (NAN) in Benin on Thursday.
He said that the more foreign currency the country earns, the more positive the effect will be on the value of the Naira.
“There are not enough foreign exchange reserves in the country; it does not earn foreign currency in the same way its citizens demand foreign currency for importation.
“The marginal propensity to import goods and services is much higher than the propensity to export and earn foreign exchange, which has a negative impact on the Nigerian economy.
“The stock of foreign exchange earnings has been depleted to a level that merits some concern,” he said.
Obadan said the low foreign exchange earnings coupled with the high inflation rate will continue to negatively impact the country’s exchange rates against other countries.
He therefore urged exporters to seize the federal government’s export promotion incentives and loans to boost the country’s non-oil exports.