Some financial experts, on Tuesday, say the Nigerian economy is faring well despite the drop in the foreign reserve, attributing this to some economic policy failures.
The experts made this observation in separate interviews with the News Agency of Nigeria (NAN) in Ibadan.
Mr Raji Rasaki, a financial expert, linked the drop in the nation’s reserve to the current increase in the U. S. interest rate.
NAN reports that the U.S. unemployment fell to 3.7 per cent in September, which is its lowest figure in nearly half a century.
Job gains were registered in the fields of professional and business services, health care, transportation and warehousing, according to the U.S. Bureau of Labour Statistics.
The September’s jobless rate; a slight drop from 3.9 per cent in August, is the lowest recorded in the United States since 1969.
However, Rasaki said: “This is not only affecting Nigeria but a lot of countries as well such that most countries are devaluing their currencies, instead of having that negative effect, our naira is still appreciating.
“It is good for the economy because it shows we have a dynamic economy that is reacting to what goes on in the world market,” he said.
Mr Tunji Adepeju, an economist, pointed out that since Nigeria’s economy is not “dollarised”, there is no need to panic because on the long run with what government is doing, the economy will be in good stead.
“If we continue to reduce importation and grow our exportation of agricultural produce, as it is being done with yam and other goods, we will have more foreign reserve.
“Again, the arrangement between Nigeria and China to do exchange business in Chinese currency instead of passing through the dollar, will also help our economy,’’ he said.
Mr Lanre Popoola, the Vice President, Manufacturers Association of Nigeria (MAN) representing Extreme Manufacturing Nigeria Limited, said that Nigeria would soon bounce back to the peak of its foreign reserve.
“The price of crude oil is going higher, repatriated money is coming in and government diversification has started to yield fruits, so there is no need to fear that the foreign reserve has dropped.
According to him, Nigeria will rise above this challenge in no distant time.
NAN reports that the Central Bank of Nigeria (CBN) had announced that the Nigeria’s external reserve stood at $45 billion as at September, the lowest in six months.
