REVEALED: Dollarization of Nigeria’s economy, free fall of naira frustrating Nigerians – Expert

An Abuja based financial expert, Dr Emmanuel Ozigi has appealed to the federal government and other relevant authorities to take urgent steps to reduce the dominance of dollar in Nigeria’s economy and the free fall of the naira, saying it was frustrating Nigerians.

Ozigi made the appeal during the official launch of business operation of Kabimya Finance Company Limited (KFCL) in Abuja on Tuesday.

He said that the dominance the dollar had impacted negatively on the nation’s economic activities.

Ozigi also called for urgent review of the Central Bank of Nigeria (CBN) free floating policy of the naira, stressing that allowing the exchange rate unregulated would worsen the situation.

He said: “You cannot have a free for all policy where there are no regulations. Because there is no economy that thrives on a free market policy where everybody determines, or the forces of the market determines. Some of the policies as in the case of Nigeria are not realistic. The effect will be heavy on the common man. That is why the implications of the free for all policy we have now is more on the common people who do not have access.

“That is why we are saying it should regulated. At the same time, government should be looking at how to reduce the dollarization of our economy. Because we cannot continue to dollarize every of our activity. When you dollarize everything, it makes it difficult for you to improve your economy locally. And that is why we cannot compete internationally. So as much as possible, we should reduce dollarization of our commodities, activities and services.

“When you have an economy that is regulated, it means that there is no control. You can see the micro-economic effect of happening in Nigeria in less than last 60 days in terms of inflation, standard of living and livelihood. You can see the implications, and this is as a result of when you have policy that did not actually give a direction on how an economy should go.

“An economy should be driven. And should have drivers of the economy who will point the direction of how it should go. Now that it is the force of demand and supply that determines the exchange rate. I can decide to hoard and release when I know there is heavy demand. These are the implications of not having a regulated economy.”

Speaking who spoke impact of KFCL, added that the firm will assist the Nigeria business community especially the Small and Medium Enterprises (SMEs) by providing serviceable credit facilities and jobs to the teeming unemployed youths.

He also said they the firm will give risks management advise to help the business of their customers grow.

He said: “We believe that the foundation of success lies in innovation, trust, and customer centric approach. With a team of dedicated experts and a deep understanding of the industry, we aim to be at the forefront of financial solutions, catering to the unique needs and aspirations of our valued clients.

“Our mission is simple: to empower our clients to achieve their financial goals and secure their financial future. Through a comprehensive range of products and services, we will be offering tailored solutions that cater to every stage of our clients’ lives from investment planning and wealth management to lending solutions and risk management strategies.

“As a responsible financial institution, we are committed to upholding the highest standards of ethics and transparency. Our customers’ interests will always be our top priority, and we will go above and beyond to ensure the utmost security and confidentiality of their financial information.

“As a finance company, the only thing we are not eligible to do is to obtain deposit like the banks do. Every other activities we can.

“We will protect our customers interest which is key and paramount. That is why our service and activities are customer centric. Our customers’ satisfaction is key to our activities and business. Without them, we will not be able to operate optimally.

“We are looking at the impact of financial institution to the developing an economy. That is why we are looking at SMEs. The SMEs are very critical in economic development, as they contribute to employment and reduction of poverty in an economy. So we are looking at how SMEs will have access. We will partner with existing financial institutions to see how SMEs will be able to access soft loans. The loans will not be a long term that would affect their profit margin. But that which will help them to support their businesses that will crystallize into profit making.

“We will expand our technology to enable customers access our products and see cues wherever may be”.