Declining Diaspora Remittances Due to Covid-induced Job Losses Contributing to Naira’s Fall, Says Analyst

Johnson Chukwu, CEO at Cowry Asset Management says Nigeria is experiencing dollar shortages as a result of very low supply, with declining Diaspora remittances one of the major reasons.

[bc_video video_id=”6212597279001″ account_id=”6116119081001″ player_id=”CJdhmO46zo” embed=”in-page” padding_top=”56%” autoplay=”” min_width=”0px” playsinline=”” picture_in_picture=”” max_width=”640px” mute=”” width=”100%” height=”100%” ]

While speaking exclusively to Arise News, the policy analyst attributed the low supply compared to demand, to the fall in the proceeds of crude oil sales as a result of lower prices and production, a drop in portfolio investment as investors flee the Nigerian markets and a decline in Diaspora remittances, as Nigerians abroad lose jobs from the Covid-19 pandemic.

Analysts have called on Nigeria to diversify its forex supply to the economy by increasing domestic projects and economic activities that generate more foreign exchange or that are import substituting.

Africa’s most populous country is also faced with the task of creating more investment options for both foreigners and domestic economic agents.

Lillian Jijingi

Follow us on: