Special Adviser to the President on Economic Matters, Tope Fasua, has said that the strategy of floating the naira made local goods cheaper and e-commerce lucrative.
Fasua made the assertion in an interview on Arise Tv.
He said the decision of the Central Bank of Nigeria (CBN) to float the naira was strategic.
In June 2023, the apex bank floated the currency resulting in over 95 per cent deprecation against the naira, according to KPMG.
As of December 25, 2024, the naira traded at N1,538 per dollar and N1,637 at the parallel market.
Fasua said “As a matter of strategy, the Naira was floated to remove arbitrage opportunities that people had been enjoying. The Naira is now looking plenty.
“But there’s also what is called the purchasing power parity. Meaning that if you focus on the naira, you can do a whole lot more.”
He explained that the monetary decision made foreign goods expenses compared to local substitutes.
Fasua said, “But if you’re using that naira to purchase foreign things, which are demonstrated in other currencies, then you’re going to have a problem.
“Because you can buy as many of those foreign items as you would if you focus on the Naira. So if you look at it today, a lot of people are shopping locally.”
He said floating of the naira structured the economy in fundamental ways including making e-commerce lucrative.
The aide said, “E-commerce has become a big thing. You know, most people, whatever it is you’re putting on today, you can get it online in Nigeria to be delivered to you. You don’t even have to leave your house.
“So for as long as you can do that, people are becoming more entrepreneurial in producing and providing the things that Nigerians need themselves.
“In fact, if you look at it further, look at the Aba area, you see that there’s a lot of products moving into Cameroon, into Gabon, into DR Congo, into other places.”
