‘Reduce FX demand, increase oil output’ — NGF advises FG on measures to revive economy

Members of the Nigeria Governors’ Forum (NGF) say there is a need to address the connection between food inflation, naira depreciation and rising insecurity in the country.

In a communique issued at the end of their virtual emergency meeting on Tuesday, the governors called for “urgent discussions with and synergy amongst stakeholders in improving the situation in the shortest possible time”.

The meeting was the first for the forum in 2024.

In the communique signed by AbdulRahman AbdulRazaq, governor of Kwara and chairman of the forum, the governors said they have agreed that there is a need to reduce foreign exchange demand.

This, they said can be achieved by “use of moral suasion to reduce dependence on foreign exchange, imported goods and services”.

The governors also said the federal government needs to improve foreign exchange supply by “easing commodity export requirements to encourage the exportation and supply of foreign exchange”.

They advised the government to curb the illegal export of solid minerals and increase crude oil production to earn more foreign exchange.

The governors noted that they have resolved to review extant criminal justice laws in states for speedy prosecution of perpetrators of insecurity.

On food inflation, the governors said they have agreed to deploy “emergency food interventions, including incentivising food production, the release of food items from strategic food reserves, and collaboration with food millers and commodity traders”.

Recently, the prices of food items in the country have skyrocketed amid the naira depreciation in the foreign exchange market.