Former Cross River State Governor Donald Duke has criticized Nigeria’s exchange rate approach, arguing that allowing the naira to adjust through market forces without sufficiently strengthening local production has intensified pressure on households and businesses.
Speaking to journalists in Abuja, Duke said the country’s reliance on imported goods exposes consumers to exchange rate movements and places sustained demand on foreign currency. He urged the government to adopt policies that expand domestic manufacturing, support exports and reduce imports that could be replaced by locally produced alternatives.
Duke argued that currency management should be considered alongside the country’s productive capacity. In his view, greater industrial output and stronger export earnings would help ease foreign exchange pressure and create jobs.
He also criticized high borrowing costs, saying expensive credit discourages manufacturers and other businesses from expanding. Fuel prices, he argued, contribute heavily to the cost of moving goods and providing services, and therefore affect household prices across the economy.
His comments reflect a policy critique rather than a settled economic conclusion. Economists differ over how exchange rates, monetary policy, fuel prices and domestic production interact, and each can influence inflation through different channels.
Duke also challenged government institutions to buy more locally manufactured goods, including vehicles, where suitable products are available. He said public procurement could support Nigerian businesses and conserve foreign exchange if accompanied by standards and competitive pricing.
Turning to governance, the former governor said competence should matter more than age or political loyalty in the appointment of public officials. He called for more substantive debates in which presidential candidates explain how they would address economic and institutional problems.
The broader question raised by his intervention is how Nigeria can combine exchange rate stability, affordable finance, productive investment and disciplined public spending in a way that improves living standards rather than merely changes financial indicators.
