Melvin Onwubuke
The National President of the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture, Dele Kelvin Oye Esq., has said that the recent devaluation of the naira was fuelling food and grain export to West African countries as Nigeria’s food is now the cheapest in the West African, region due to the naira fall.
In response to comments by the Nigerian Governors’ Forum, Oye pointed out that although an immediate impact of devaluing the naira on exports may be favourable, the overall effects of continued devaluations are multifaceted, according to Vanguard.
NACCIMA President said in a statement that the Nigerian Governors’ Forum observations on currency devaluation, especially its effect on trade competitiveness, are very nuanced.
He said, “The observations made by the Nigeria Governors Forum highlight a nuanced aspect of currency devaluation – its effect on trade competitiveness. The devaluation of the Naira, while presenting broad economic challenges, does appear to have inadvertently enhanced the competitiveness of Nigerian food and grain exports within the West African region.
“This phenomenon is rooted in the economics of exchange rates. A weaker Naira means that Nigerian goods become less expensive for buyers using stronger currencies. Consequently, Nigerian food and grains are now more competitively priced when compared to similar products from countries with stronger currencies. This price advantage can lead to an increase in demand for Nigerian exports within the region.”
Recall that the Nigerian Governors’ Forum said the devaluation of the naira was spurring food exports to Western African countries.
Nigerians are currently grappling with economic hardship as a result of escalating prices of basic household commodities.
Nigerian Labour Congress recently said food has become so scarce that Nigerians have become scavengers and resort to raiding food trucks and warehouses for food; and if those in government cannot see the danger in what is happening, we see it and must ensure that the government fulfills its duties to the people.
