Governor of the Central Bank of Nigeria, Godwin Emefiele, on Saturday, explained that the Naira is depreciating against the dollar because Nigeria doesn’t export anything except oil.
Speaking at a career talk organised for the teenagers of Redeemed Christian Church of God (RCCG) at TEAP school, Abuja, Emefiele noted that Nigeria’s over dependence on oil led to the present decline in value of the currency.
The CBN Governor, who was represented by his deputy, Sarah Alade, said that the economy should be diversified to allow more economic growth.
He said, “Our currency is naira but there are lots of things we buy but we cannot use the naira.
“We have to use dollars but do we earn dollar? We earn dollar when we have something to sell to people who have dollar so we can gain in Naira.
“In Nigeria, the only thing we have is oil. So when the prices of oil fall, everything falls.
“We then have less dollars and in that case, those who want the dollar will then need more naira to be able to meet the demand.
“Those who did economics will know that the price is determined between supply and demand.
“So if the supply for dollar is very low and the demand for dollar is high, the price of naira will be low.
“So as a country, we should have more goods to sell and export so that we can have enough dollars for supply and the naira can grow.”