The Central Bank of Nigeria (CBN) has been seeking, but to no avail, to direct scarce foreign funds into the highest-value uses. This, however, has been counterproductive on the nation. As a consequence of the Central Bank of Nigeria’s (CBN) policy, which includes limitations on FX trading, importers have been forced to acquire dollars at a higher value in order to bring the item/commodity into Nigeria. This is because the local supply is insufficient to fulfill demand. The foreign exchange market is distorted as a result of this, making it difficult to conduct business in certain industries. For instance, in the real estate sector, the majority of value added occurs in Nigeria say 70 -85%; however, you will still need to import some components for manufacturing, which developers/contractors or other members of the value chain are unable to do. This is because they do not have systematic way to access foreign exchange. If there was a standard exchange rate, conducting business in the real estate market would be less complicated. Concerns that have been raised in relation to the unpredictability of the naira may be alleviated if Nigeria maintained a stable foreign currency rate.
The following is a list of some of the benefits that come with having only one exchange rate.
- It would make it simpler for Nigerians to access markets around the world.
- It would boost the competitiveness of Nigerian industries by given then a to sell their goods and services with less restrictions on a global scale.
- It would help to maintain the stability of the Naira, which is now in a weak position.
- In addition to this, it provides Nigeria with access to a broader market.
- Also, freer trade among Nigerians is one factor that could contribute to the country’s overall economic expansion.
The real estate industry is the most significant part of the economy. It not only helps individuals move out of poverty but also produces jobs. When the housing market does well, the rest of the economy tends to do well as a whole as well. It is absolutely necessary for the industry as a whole to band together and do what is necessary in order to advance the sector.