Kano – Prof. Mustapha Muktar, lecturer in the Department of Economics, Bayero University, Kano, has advised the Federal Government to ensure gradual implementation of the recent currency swap agreement with China.
He gave the advice on Wednesday in Kano in an interview with the News Agency of Nigeria (NAN).
He said the advice was necessary to enable policy maker’s review its progress and issues that might arose due to the risks and shocks associated with global financial market.
He added that the advice was also necessary since Nigeria already had trading issues and diplomatic relations with the United States.
Muktar explained that withdrawing too much Naira from U.S dollar to Yuan might affect the relationship between Nigeria and America.
“The government should be careful; it should not swap too much Naira into Yuan from its foreign reserve as the volume to be converted is not yet officially made known”, he said.
He urged the Federal Government to provide an enabling environment that would encourage the export of raw materials to China and other parts of the globe.
“This is necessary in order to reduce trade imbalances,’’ he said.
The lecturer told NAN that the agreement would also facilitate Nigeria’s increasing volume of trade with China.
He said that about 76 per cent of imports coming to Nigeria are from China.
“The agreement will make the Yuan and Naira available to Chinese and Nigerians,”he said.
According to the don, the agreement will also strengthen trading ties between the two countries in addition to attracting foreign direct investment from China.
“If the agreement is well managed, it will boost employment, income and reduce poverty among Nigerians.
“The agreement is also expected to improve infrastructure especially in the areas of electricity and transportation,” Muktar added. (NAN)