Nigeria should join the growing trend of trading in local currencies, particularly with Russia, Dr. Abdulkareem Alhassan, Director of the Center for General Studies at the Federal University of Lafia, believes.
In an interview with Sputnik Africa, Dr. Alhassan emphasized the numerous benefits of this shift. He argued that using local currencies would conserve Nigeria's foreign exchange reserves, alleviate pressure on the naira, and enhance the country's economic sovereignty.
He argued that using local currencies would conserve Nigeria's foreign exchange reserves, alleviate pressure on the naira, and enhance the country's economic sovereignty.
"The level of independence in policymaking and policy implementation, particularly economic policies, will improve when we trade in local currency," Dr. Alhassan stated. "This means the monetary and fiscal policies of the country can be controlled domestically more than when we rely on USD and the other foreign currency for international trade."
The academician highlighted the potential of local currency trading to boost Nigeria's agricultural sector by providing access to advanced agricultural technologies and inputs from Russia. This, in turn, would stimulate growth in other sectors of the Nigerian economy.
He further argued that the move away from Western-dominated financial systems, which he believes have kept African countries in a cycle of poverty and debt, could serve as a blueprint for broader economic growth across the continent.
"In the multipolar global geopolitics from the African perspective, Nigeria is a major player," Dr. Alhassan concluded. "And the moment Nigeria embraces this shift, advocated by Russia, a lot of African countries will follow."