In a statement that underscores the complexities of Nigeria’s economic landscape, Professor Kingsley Moghalu, a distinguished economist and former Deputy Governor of the Central Bank of Nigeria (CBN), has dismissed the notion of a swift return to a N400 to the dollar exchange rate, branding it as mere wishful thinking.

Speaking candidly, Moghalu highlighted the fundamental realities shaping the nation’s currency dynamics. In a statement posted on his social media platform, he asserted, “Those who want the Naira to be N400 to the $ are living in a dream world.”

Drawing attention to the repercussions of past policies, Moghalu emphasized the detrimental effects of maintaining an artificially low exchange rate, a practice he attributed to the previous administration’s efforts to appease political stakeholders. He remarked, “Even discounting for the negative impact of speculative attacks on the value of the naira, the exchange rate will (and should) reflect its market value in reality, not the artificiality that the Emefiele era central bank sought to maintain to please economic illiterates in political power at the time.”

Moghalu further elucidated on the challenges confronting Nigeria’s economy, stressing the absence of a robust export sector and insufficient foreign reserves. He cautioned against unrealistic expectations, pointing out the need for a paradigm shift towards fostering a value-added manufacturing export economy.

Central to Moghalu’s discourse was the imperative of addressing Nigeria’s energy deficit. He highlighted the chronic electricity shortage plaguing the nation, asserting that substantial progress in this area could unleash the full potential of Nigeria’s entrepreneurial spirit.

Regarding the valuation of the Naira, Moghalu advocated for a balanced approach, stating, “Our goal should not be for it to be artificially overvalued. If we can get to the N900-N1200 to a $ range, that would be fair value.” He expressed optimism in the CBN’s ongoing efforts to stabilize the currency, underscoring the importance of sustained gains and exchange rate stability.

As Nigeria navigates its economic challenges, Moghalu’s insights serve as a reminder of the intricate interplay between policy decisions, market forces, and the quest for sustainable growth.