Financial sector experts have suggested that the ongoing depreciation of the naira can be halted through enhanced oil production and the cessation of oil theft.

Against the backdrop of the increasing foreign exchange rate, the federal government has also been charged to ramp up non-oil exports out of Nigeria as part of measures to strengthen the naira.

Daily Trust on Saturday reports that the dollar crossed a record N1,400 as of Friday at the parallel market.

The Central Bank of Nigeria (CBN) Governor, Olayemi Cardoso, said during the week that naira is undervalued.

However, the Managing Director of Afrinvest Securities Limited, Ayodeji Ebo, expressed optimism that the currency would regain its strength, adding that this is dependent on the reforms implemented by the government.

He advised the government to stop oil theft and maximise the oil revenue to beef up the forex reserve.

Ebo said, “Naira will regain its value before year end but it depends on the move that is made or how policies are managed. Government should increase supply and if that is properly managed, the naira will appreciate.

“Also, we need to access the international market for loans. For instance, in 2021, the government raised about $5.2 billion and we need that type of intervention again. We need to stop oil theft to increase supply. If these two are done, the naira will be strengthened in the short term while in the long term, we need to focus on non oil exports.

“Importantly, the government should stop oil theft and increase production to 1.8m barrels per day to increase FX supply while we access the international market to raise other structures. Before naira can stabilize, the country needs over $10bn in the economy and as crude oil continues to provide a steady inflow, we need to work on long term non oil exports,” he stated.

On his part, another analyst, Charles Fakrogha, said the forex unification by the current government was a welcome development.

He advised that for the country to see the benefits of the current reforms, Nigerians must contribute their part by patronising locally made goods as against foreign products.

He said the naira is falling because of the government’s inability to meet the dollar demand as the supply is shrinking.

“The government did unification of the exchange rate which is a good policy and we supported it and before you do that, there must be measures on ground to support the dollar.

“CBN is supposed to be a market maker so that when more people are buying, the CBN is selling and when more people are selling, the CBN is buying but the CBN itself doesn’t have the dollar to supply that’s why we are seeing the naira depreciate,” he stated.