Naira’s Local Value Defended Amid Dollar Weakness, Says President Tinubu’s Adviser
In a recent appearance on the Mic On Podcast, Dr. Tope Fasua, President Bola Tinubu’s Special Adviser on Economic Affairs, defended the naira’s local value despite its significant depreciation against the U.S. dollar, which recently crossed the threshold of N1,500 for just $1. Fasua asserted that even at this rate, the naira retains considerable purchasing power for many Nigerians.
During the podcast, hosted by Seun Okinbaloye, Fasua emphasized the importance of understanding how poverty is evaluated on a global scale, noting that many Nigerians misinterpret the concept of “multi-dimensional poverty.” He explained, “There is a misunderstanding regarding multi-dimensional poverty; some believe it is necessarily worse than food poverty. In reality, it refers to factors such as the distance to schools or healthcare facilities, which can categorize someone as multi-dimensional.”
Fasua maintained that while the naira’s exchange rate may seem unfavorable compared to the dollar, its purchasing capabilities remain robust in local contexts. He highlighted that while $1 is equivalent to N1,500 and might appear daunting, it still holds significant value for many people in Nigeria. “For instance, $10 may not buy you a meal in the U.S., where you often need at least $20, equating to about N30,000 in Nigeria,” he pointed out.
To illustrate his point further, he provided examples from everyday life, noting that with $5, or approximately N7,500, one can enjoy a meal at street vendors without breaking the bank. “In Gwarinpa, for example, there are vendors selling grilled plantains and fish, where you can enjoy a meal for just N1,500 if you know where to go,” Fasua said.
Through his comments, Fasua aims to reframe the narrative around the naira’s value in light of the current economic climate and encourage a deeper understanding of what poverty truly entails in Nigeria.
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