United Nigeria Airlines CEO Gives CBN, FG Simple Solution to Crash Naira to Dollar Rate Below N1,000
- The CEO of United Nigeria Airlines, Obiora Okonkwo, has highlighted what can be done to bring naira to dollar exchange rate below N1,000
- To achieve this, he proposed several actions the Nigerian government and the Central Bank of Nigeria should consider
- The Nigerian currency at the official and black market foreign exchange currently sells above N1,600 per dollar
Legit.ng journalist Zainab Iwayemi has over 3-year-experience covering the Economy, Technology, and Capital Market.
The chief executive officer of United Nigeria Airlines, Obiora Okonkwo, has hailed the CBN for its efforts to stabilise the naira in the country.
Source: UGC
He expressed hope that the naira will fall below N1000/$ in the near future.
In an interview with Channels Television's business morning show, Okonkwo said:
“We are happy with the success recorded so far in the last week, and there’s hope that the naira will continue to come down, below N1000, probably.”
To accomplish this, however, he recommended that the government introspect and identify the root causes of these problems.
What government should do to crash dollar
Okonkwo suggested that the federal government should first ensure that the increased federal allocation to states is not used to mop up the foreign exchange market to absorb the surplus cash.
According to him, the activities, usually transacted in cash, starve the market of needed funds.
He also called on the government to ensure enough supply in the foreign exchange market to reduce the influence of speculators.
How FG can raise more revenue
During the interview, Okonkwo proposed solutions for the government to increase its revenue inflow.
His words:
“The government should quicken the process of taking the NNPC to the stock market. That will help them raise a lot of money and download some NNPC assets in some partnerships. They should do that.
“I have no doubt that when that is done, the government should be able to raise between 10 to $20 billion.”
He praised the Central Bank of Nigeria for conducting interviews to keep Nigerians informed about efforts to enhance the value of the Nigerian currency.
He also recommended that providing feedback to Nigerians should be embraced openly, without concern for whom it may impact.
The United Airlines' boss proposed that the CBN create a special window for the aviation industry to access forex.
He added:
“I also think there should still be a special window for some sectors of this economy. Civil aviation is not getting the attention required in this foreign exchange saga. The money, the language and the official money for aviation is the dollar.
“I know other sectors are affected, but in terms of category, aviation is the number one category. It is a catalyst for economic growth. And if we don’t do that quickly, it will affect this industry negatively. Obviously, the multiplier effect will be enormous.”
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Legit.ng earlier reported that Rano Air commenced domestic passenger airlift from Katsina to Abuja and Kaduna to Lagos to lessen travellers' difficulty on that route.
In a statement, Auwalu Abdullahi Rano, the chairman of Rano, said the milestone was marked on January 21, 2024.
Before the development, the airline launched last year had been ferrying passengers from Abuja to Lagos, Kano, Sokoto, and Maiduguri.
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Source: Legit.ng
