According to Dr. Franklin Ngwu, Director of the Lagos Business School Sustainability Center, during a recent dinner with foreign investors in Nigeria, they conveyed their dissatisfaction with the naira’s free decline and the rise in the exchange rate....For More CONTINUE THE FULL READING▶▶
According to him, one of the main obstacles to sustainable business operations is exchange rate volatility, which can interfere with pricing strategies and make it more difficult to import the manufacturing inputs that are required. Given the volatility of the naira in the foreign exchange market, he voiced doubts about Nigeria’s capacity to draw in foreign investment.
He said in an interview with Arise TV, ‘The question is will Investors come in here when you have a free-floating naira and when you have the naira going down. Yesterday evening, I had dinner with some foreign investors and they are saying that this cannot continue. One is from India, the other one is from Norway.
Because if you bring in something and you produce based on your calculations and everything and you are going to sell at 100 naira. Before you know it, the exchange rate has gone up and you can’t even bring in more input. So it’s not sustainable.” CONTINUE FULL READING>>>>>
