Dollarization, Unethical Practices Devaluing Naira, Frustrating Economy – Prof. Nwanyanwu

Professor Loveday Nwanyanwu of the Department of Accounting, Rivers State University, has warned that Nigeria’s economy will continue to deteriorate unless urgent steps are taken to curb dollarization and unethical financial practices that weaken the naira and frustrate economic growth.

Delivering the institution’s 117th Inaugural Lecture titled “Managing a Nation’s Economy: The Quantitative and Qualitative Accounting Distinction” in Port Harcourt,on Wednesday, August 27, 2025 Prof. Nwanyanwu said the value of the naira is being eroded because government officials and individuals stockpile dollars in their homes rather than invest locally.

He stressed that this practice drains liquidity, cripples productivity, fuels inflation, and worsens unemployment.

“The problem of Nigeria is not lack of knowledge or expertise, but human behavior. Our people trade in dollars on the streets, hoard foreign currency, and frustrate the economy. If we stop the dollarization of the economy today, the economy will improve by at least 70 percent”.

He lamented that such unethical behaviors undermine the Central Bank of Nigeria’s monetary policies.

The professor called for stronger legislation to discourage individuals and companies from transacting in foreign currencies, urging government to compel those hoarding hard currencies to deposit them in banks for circulation and investment. He added that governance should be entrusted to technocrats with integrity, transparency, and honesty to restore faith in the system.

Highlighting solutions, Prof. Nwanyanwu recommended a blend of quantitative and qualitative accounting in national budgeting, improved fiscal discipline, and a culture of ethical leadership. He insisted that until Nigerians embrace integrity and transparency, economic prosperity will remain elusive.

In his remarks, the Vice Chancellor of Rivers State University, Professor Isaac Zep-Obipi commended the lecturer for exposing the damaging impact of unethical practices on the naira and the wider economy.

“For me, and I think you will agree with me, he has done justice to the theme of the lecture… And I think he has made his contribution to the development of our economy, which we expected as scholars to do by our researchers. And I am convinced that this university is doing very, very well in this direction.”

He emphasized that the university was already aligning its procurement processes with international standards through the establishment of an International Law of Procurement, adding that its forthcoming procurement policy would ensure transparency, integrity, and efficient use of resources.

“That’s why today, this university, we have created the International Law of Procurement, aligned with the laws of the Federal and State Governments, where procurement processes are matched with international standards. And I believe, very soon, our administration and procurement policy will be developed to ensure objectivity, integrity, and efficient use of available resources.”

The event, attended by members of the academic community, students, and stakeholders, ended with a call for Nigerians to change their attitudes and support reforms that will strengthen the naira and stabilize the economy.