How Nigeria Can Revive Shrinking Foreign Exchange Reserves- Expert

The Federal Government needs to create an agric- hub and leverage on technology to boost the country’s dwindling foreign exchange reserves, a financial analyst, Sanmi Akindipe has said.

He said this on Monday while discussing the ‘Dwindling Foreign Reserves; Accessing Current Shocks, Alternative Revenue Base,’ on TVC News Business Nigeria programme.

Akindipe said the Nigerian government could create an agric- hub where small businesses and farmers can package their products for export.

Akindipe said this amidst Nigeria’s declining foreign exchange reserves which fell to $35.6bn as of November 13, from the $35.7bn recorded early October.

Nigeria’s reserves have been largely impacted by the covid-19 induced crash in crude  oil prices which sold for less than $10 per barrel in April.

Akindipe said, “The government could create a system where the country can have small farmers able to package their products.

“We can run maybe one or two hubs all over the nation. That hub will be a centre where you have the machine to process, you have the machine to seal, you have the machine to do everything you need to do to package to taste and export.

“So, you are not going to buy it, I am not going to buy it, each farmer that has a space in that hub will have a machine to rent for use. You do your processing, you package your stuff and then you bring it to the government. They are the ones fronting the export.”

The expert noted the products when exported could generate a sizable amount of foreign exchange into the country.

Akindipe believes in terms of agricultural packaging, Africa’s largest economy can compete internationally.

He said the hub will also checkmate the standard and quality of the goods which are targeted at the international market.

With a population of over 200 million, the expert said the government could also leverage the growing  tech-space to  earn the needed foreign exchange to boost external reserves.