The way things are going, the naira’s predicament is like an ailment that wants to kill the victim because, sadly enough, the root of the problem is overlooked while wrong interventions are being applied. Wrong diagnosis leads to wrong treatment with possible death of the victim.
Added to that is the existence of several exchange rates that are applicable to different people and situations in addition to the parallel and official exchange rates. The other day, the CBN Governor, Godwin Emefiele, stated that the only exchange rate he recognises is the Investors and Exporters rate, stressing that he does not recognise any other rates in the market.
The CBN’s decision left the naira in disarray. Now, the government is in a dilemma over what to do. It is easy to start a bush fire but most difficult to stop it. The naira is floating, indeed, tumbling freely with nothing to hold or support it. There is apprehension that except the economy is rejuvenated for productivity, rather than the current consumptive regime, the naira might plummet to N1000/$1 or more.
How did the country come to this sordid pass? Nigeria was a net producer and exporter of industrial and agricultural goods from which she derived foreign exchange. Unfortunately, the long military interregnum that followed destroyed the economic structure leaving the country with oil diseconomy. My greatest worry borders on the shutting down of companies/industrial firms and the resulting job losses at a time when millions of young graduates are idle with no jobs. The depreciation of the naira has triggered the worst economic downturn since the end of the Nigerian Civil War. Companies are shutting down due to their inability to withstand the shock.
Furthermore, the Manufacturers Association of Nigeria had lamented that some 272 firms have shut down due to the restriction placed on 41 items by the CBN. The items were delisted from the official foreign exchange window, leaving the companies that make use of the items to source foreign exchange from the parallel market. MAN also disclosed that the scarcity of forex has forced many small-scale businesses to close shop with as many as 180,000 job losses.
Carve out $10 billion bonds out of the present external reserves to support local production of specific goods that the majority use daily & protect those products against imports. The remaining $25 billion is a guarantee for imports of luxury items. Then peg Naira to the dollar.
Because Fulani janjaweeds and cows dominates the presidency..
Cause Nigerians(Elite and common man) are consciously killing the Naira
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