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Charles Soludo, governor of Anambra state, says Nigeria should maintain a competitive exchange rate over the next decade to support local production and make its goods more attractive in international markets.

Soludo said the country should target a real effective exchange rate (REER) undervaluation of at least 25 percent to 30 percent year-on-year over the next 10 years, warning against celebrating excessive appreciation of the naira.

The REER is a measure of a country’s currency strength compared to a basket of foreign currencies, taking inflation into account to reflect real purchasing power.

He spoke on Monday during a panel session titled ‘Growth That Works: Building a New Economic Accord for Nigeria’ at the 32nd edition of the Nigerian economic summit (NES).

The former Central Bank of Nigeria (CBN) governor said macroeconomic stability is important but should not be taken for granted, noting that Nigeria needs to sustain reforms while building a more productive economy.

“The macroeconomic framework, the stability that is back must never be taken for granted,” he said.

The governor said lasting economic progress depends on consistently implementing sound policies rather than expecting rapid results from short-term interventions.

Soludo also urged Nigerians to increase their consumption of locally made goods, saying stronger domestic demand could create millions of jobs.

“If we all eat and wear what we produce in Nigeria, more than 10 million jobs will be created,” he said.

He also cited his use of locally produced Akwete fabric as an example of how demand for domestic products could support producers and employment.

‘NIGERIA EXPORTED ONLY 9 NEW PRODUCTS IN 17 YEARS’

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Also speaking, Chema Triki, co-founder and managing director of Growth Teams, said Nigeria added only nine new products to its export basket since 2007, highlighting the country’s limited progress in diversifying its economy.

She said Nigeria ranks 141st out of 145 countries in economic complexity, a measure of the knowledge and capabilities reflected in the products a country makes and exports.

According to the expert, more than 85 percent of Nigeria’s exports are oil and oil-related products, leaving the economy vulnerable to external shocks and limiting its ability to create jobs through manufacturing.

“What that means is that in 17 years, Nigeria has learned to export only nine new products,” she said.

“Export is important because it’s the best way to discipline firms to learn, but also to discipline your political economy from not protecting too much uncompetitive firms.”

Triki said exporting goods forces businesses to improve product quality, adopt new technologies, and compete with international producers.

She said access to foreign markets also allows businesses to expand beyond domestic demand, noting that Nigeria’s large population does not automatically translate into a market with sufficient purchasing power.

Using Samsung as an example, Triki said the South Korean company moved from agricultural trading into textiles and electronics before becoming a major technology brand.

She said Nigeria needs to help local businesses develop the capacity to produce goods for international markets rather than depend largely on domestic consumption.

On his part, Stefan Dercon, professor of economic policy at the Blavatnik School of Government, University of Oxford, said businesses also need stable macroeconomic conditions, reliable infrastructure, and predictable costs to compete.

He identified electricity, logistics, and efficient ports as important requirements for improving the competitiveness of Nigerian products.

Dercon warned against protecting local industries indefinitely, saying government support should help businesses become competitive rather than keep them dependent on protection.

“You can’t keep them 40 years an infant. You can’t keep them protected in the same way,” he said.

The professor also said governments need the capacity to ensure that businesses receiving protection or other forms of support meet agreed performance targets.