Dr. Tope Fasua, Special Adviser to President Bola Tinubu on Economic Affairs, has defended the purchasing power of the naira within Nigeria, asserting that local buying power remains significant despite the currency’s relatively low value against the dollar.
During his appearance on the MicOnPodcast with Seun Okinbaloye, Fasua discussed misconceptions surrounding the concepts of poverty and currency valuation, particularly in the context of multi-dimensional poverty.
He explained that many people misunderstand the term “multi-dimensional poverty,” which is commonly used in global poverty assessments.
Fasua clarified that multi-dimensional poverty is not solely about food scarcity.
“It could mean factors like a child’s school being far from home or inadequate access to healthcare, rather than just hunger,” he said.
Fasua also stressed that the exchange rate alone doesn’t reflect the true cost of living in different countries.
He highlighted that while $1 may not be a substantial amount in the United States, it holds greater value in Nigeria.
“As of today, $1 equals about N1,500, which goes a long way for many Nigerians,” he pointed out. “You can’t get lunch for $10 in the U.S.; often, you need at least $20, which is roughly N30,000 here.”
He further illustrated the point with examples from daily life. “For just $5, or N7,500, you can enjoy a meal at local spots. In Gwarinpa, you can get Boli and fish for as low as N1,500,” Fasua explained.
His remarks come amid ongoing discussions about Nigeria’s economic challenges, including inflation and the naira’s performance on international markets.