Mr. Olumide Adedoyin, the Registrar of the Chartered Institute of Treasury Management (CITM), has issued a cautionary statement to the Federal Government regarding the alleged intention to re-denominate the naira, expressing concern that such an action could jeopardize economic stability.
Adedoyin conveyed this apprehension in a statement released in Abuja on Tuesday, responding to reports of a potential naira re-denomination. He emphasized that rather than pursuing currency re-denomination, the government should prioritize strategic investment for the sake of achieving economic stability.
He argued that while re-denomination might offer a short-term remedy for currency exchange rate fluctuations, it fails to address the underlying causes of such volatility.
According to Adedoyin, re-denominating the naira might erode the confidence of both domestic and foreign investors. He cautioned that an abrupt currency denomination change could raise concerns about the nation’s economic stability and the government’s management of monetary policies.
Highlighting the nation’s resources, Adedoyin asserted that Nigeria possesses the necessary means to navigate uncertainties and cultivate sustainable economic progress.
He pointed out that re-denomination would merely offer a temporary fix, sidelining the importance of structural reforms and responsible fiscal strategies. He noted that this approach could lead to inflationary pressures within the economy, leading to confusion and adjustments in the pricing of goods and services.
Adedoyin underscored that the re-denomination process involves considerable administrative and logistical challenges, including printing new currency, updating financial systems, and educating the public about the changes.
Addressing economic diversification and investment, he advocated leveraging external financing to fund infrastructure projects, enhance education and healthcare, and stimulate economic growth.
He urged President Bola Tinubu to consider this strategic viewpoint as the nation navigates its intricate economic landscape. Adedoyin firmly believed that Nigeria’s financial resources are adequate to support its activities and drive sustainable economic advancement. By focusing on astute government investments, the country could harness its potential, protect itself from external economic fluctuations, and lay the groundwork for lasting growth, benefiting future generations.
