Human rights lawyer Femi Falana has urged the Nigerian government to adopt a radical economic strategy to strengthen the naira against the dollar. In a recent appearance on Channels Television’s Politics Today program on Tuesday, Falana advocated for Nigeria to join the BRICS economic bloc, comprising Brazil, Russia, India, China, and South Africa.
“There are countries in the world today insisting that we are not going to be tied to the American dollars and those countries are in the BRICS – Brazil, Russia, India, China and South Africa,” he said
He suggested that selling Nigerian crude to foreigners in naira rather than in US dollars could bolster the country’s currency.
Falana’s call to join BRICS comes amid Nigeria’s struggle to stabilize its currency and manage foreign exchange reserves effectively. According to Falana, participating in BRICS would enable Nigeria to trade in naira, reducing its dependence on the US dollar.
Last August, Vice President Kashim Shettima attended the 15th BRICS Summit in South Africa where he stated that Nigeria had not applied to join the economic bloc. The BRICS group is considered to be a counterweight to Western powers like the United States.
Last August, Vice President Kashim Shettima attended the 15th BRICS Summit in South Africa where he stated that Nigeria had not applied to join the economic bloc. The BRICS group is considered to be a counterweight to Western powers like the United States.
BRICS has been seeking ways to ditch the US dollar in trades facilitated among its members. For instance, India has reportedly started paying for Russian oil through rupee and ruble exchange. Falana believed that joining the bloc could be a way out of Nigeria’s struggle to save the naira from total collapse.
“Others are joining them; Saudi Arabia has joined them. UAE, Ethiopia, Egypt and all that. We cannot be more Catholic than the Pope. If friends of the West are joining BRICS, why are we not there? So that we can trade in naira,” he noted.
The Senior Advocate of Nigeria (SAN) also criticized the government, stating that it is dancing around the problem. Recently, the Central Bank of Nigeria (CBN) has been releasing a plethora of policy circulars, designed to change the nation’s current FX trajectory for good. Falana said the circulars won’t solve the forex challenges.
“If I had my way, my own radical policy would be that: I would sell Nigerian gas and crude oil in naira. Let those who want to buy our products look for naira. That is how to promote your currency.
“But this business of everybody looking for dollars even to pay school fees, rent houses, and sell houses. It doesn’t happen unless you dollarize your economy. These are the issues the government would have to address to come out of this economic doldrums,” he said.
But economic experts have faulted this advice, saying that the Falana as a human rights lawyer, “does not understand the economics of Nigerian trade.”
“Nigeria is currently facing a shortage of $ to import, selling oil in local currency Naira is meaningless as a strong naira incentivizes more imports draining whatever monetary reserves exist,” Financial analyst Kalu Aja said.
In addition to his call for Nigeria to join BRICS, Falana criticized the Nigerian government’s reliance on economic policies dictated by institutions like the International Monetary Fund (IMF) and the World Bank. He urged the government to discard what he termed “deleterious policies” imposed by these institutions, such as increasing electricity tariffs and removing petrol subsidies.
Falana argued that such measures, recommended by the IMF and the World Bank, were detrimental to Nigeria’s socio-economic climate.
“There is no society in the world where government does not subsidize one product or the other even in the most advanced capitalist societies. And that is why Nigerians must begin to ask the government to discard and jettison the deleterious programmes and policies of the IMF and the World Bank,” Falana stated.
Highlighting the role of the National Economic Council, Falana emphasized its significance in advising the President on economic matters. He criticized the government for allegedly abdicating its responsibilities to international financial institutions, arguing that the Bretton Woods bodies were established by imperialists to undermine the economies of developing nations.
“The only economic body recognized by the constitution to advise the President is the National Economic Council headed by the Vice President and peopled by the state governors, Governor of the Central Bank and the Minister of Finance.”
Falana condemned the disparity between the treatment of developed countries, which receive subsidies, and the expectations placed on developing nations to adhere to strict economic policies.
In addition to his advocacy on economic policies, Falana has taken legal action to address socio-economic challenges in Nigeria. He recently filed a lawsuit compelling the federal government to regulate the soaring prices of goods and services. Falana expressed his intention to pursue further legal action should the government fail to meet the deadline set by the courts for addressing price regulation.
Falana’s proposals and actions reflect growing concerns over Nigeria’s economic trajectory and the government’s approach to addressing key issues. With inflationary pressures, foreign exchange constraints, and social unrest looming, his calls for alternative economic strategies and legal interventions denote the need for urgent reforms to stabilize the Nigerian economy and improve the welfare of its citizens.
