The Chief Executive Officer of the Nigeria Economic Summit Group (NESG) Laoye Jaiyeola, has announced that the Nigeria naira is no longer a store of value, advising that it shouldn’t be a currency of savings, because of the fast depreciation of the currency.
He disclosed on Tuesday in Abuja at the launch of the NESG 2022 Macroeconomic Outlook Report.
Jaiyeola said the moment any investor buys Nigeria’s Treasury Bills, for instance, inflation and other factors wipe away the expected profit or interest from the investment.
“Why should you tell anybody in Nigeria to store his money in naira when your interest rate on the naira in some places is even lower than the interest rate of some foreign currency?” he said.
“If you put your money in treasury bills now in a one-year treasury bill, I’m not sure you are going to get up to 5 % per annum. Inflation is 15 %. Effectively from the day you save your money you have lost your money. That explains why people will still go and buy money and keep it in dollars because naira is significantly becoming something that is not of store value,” he said.
He also explained that the challenge to the poor forex supply in Nigeria is mainly attributable to the lack of diversificationof forex sources, with colossal dependence on crude oil export proceeds and, more recently, foreign borrowings.