Duke: Floating Naira Without Local Production is Impoverishing Nigerians

Ayodeji Ake

Former Cross River State governor and presidential candidate of the Peoples Redemption Party (PRP), Donald Duke, has said that floating the naira without strengthening local industries and domestic production is worsening the economic hardship faced by Nigerians.

Duke, who spoke with journalists in Abuja on Tuesday, attributed Nigeria’s economic difficulties to excessive dependence on imported goods, rising fuel costs, high interest rates and government spending.

He argued that the country needed deliberate policies to manage the value of the naira while developing local industries, creating jobs and reducing dependence on foreign goods.

“No country floats its currency. The currency is your economic worth. It is like floating your value. As a human being, what is your worth? Are you going to float your worth? You manage your worth. You manage your currency,” he said.

The former governor maintained that Nigeria should determine a realistic exchange rate and implement policies to achieve it, rather than allow currency depreciation to worsen the cost of living.

He said strengthening domestic production would reduce demand for foreign exchange, create employment and improve economic stability.

“As long as you continue importing, you’re creating jobs overseas,” Duke said, urging the government to identify goods that could be manufactured locally.

He also expressed concern over Nigeria’s balance of trade, stressing the need to improve exports, reduce unnecessary imports and attract foreign investment.

Duke criticised the Central Bank of Nigeria’s high interest rate regime, arguing that expensive borrowing was discouraging businesses from accessing funds for investment and expansion.

He said monetary and fiscal policies needed better coordination to address inflation and support productive activities.

According to him, fuel prices significantly influence inflation because transportation costs affect the prices of goods and services across the country.

“But interest rates don’t cause inflation. The price of your fuel causes inflation. The high cost of your fuel causes inflation because everything moves through transportation,” he said.

Duke added that prevailing interest rates made borrowing difficult for businesses, potentially limiting their ability to expand operations and create jobs.

The former governor also faulted government spending on imported goods, including vehicles, saying public institutions should prioritise locally manufactured products where possible.

“The second thing is the unbridled spending by the governments. If you go to government establishments, literally everything is imported. Vehicles, everything is imported,” he said.

Duke argued that patronising locally produced goods would conserve foreign exchange, strengthen domestic industries and generate employment.

He urged the government to direct expenditure towards initiatives that would stimulate local production and reduce pressure on the naira.

On governance, Duke said greater attention should be paid to the competence of political leaders and their appointees rather than age.

“Age doesn’t affect your brain,” he said.

He criticised appointments driven primarily by political considerations, arguing that effective governance required individuals selected for their ability to deliver results.

“A lot of the appointments are based on politics and not on governance,” he said.

Duke also expressed enthusiasm about the presidential candidates, specifically mentioning Adewole Adebayo of the Social Democratic Party and Peter Obi of the National Democratic Congress.

He said he looked forward to substantive presidential debates where candidates could explain their programmes and proposed solutions to Nigeria’s challenges.