NACCIMA President Warns Governors About the Long-Term Implications of Naira Devaluation

The Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA) has issued a statement warning state governors about the long-term implications of persistent devaluation of the Naira.

NACCIMA’s national president, Dele Kelvin Oye, acknowledged that while the immediate effect of the devaluation on exports may be positive, the broader implications of a persistent devaluation are multifaceted.

He explained that the devaluation of the Naira could lead to increased inflationary pressure, higher production costs, and reduced domestic food supply, which would result in higher food prices and exacerbate food insecurity in Nigeria.

Oye also emphasized the importance of balancing the short-term benefits of increased export revenues with the need for a stable macroeconomic environment and the well-being of the Nigerian population.

He stressed that long-term stability and growth of the agricultural sector would require structural reforms to address the root causes of currency weakness, improve productivity, and ensure food security for the Nigerian people.

The NACCIMA president highlighted the importance of investing in agricultural technology, infrastructure, and human capital to maintain a competitive edge in the export market.

He concluded by stating that while the devaluation of the Naira has made Nigerian food exports more attractive in the short term, it is essential to approach this development holistically and address the underlying causes of currency weakness to ensure the long-term health of the economy.