After beginning market-driven currency trading, CBN Iis hopeful Naira’ll settle at … Read more at the link.
In Nigeria we have a saying,’Drinking panadol for another person’s headache. That is what came to mind when I read on Reuters that the US says it will press Nigeria this week to devalue the Naira. I was like, ‘Has Nigeria become the 51st state of the United States?’
There must be something for them to gain for them to be pushing us like this. Our president Muhammadu Buhari has said he will not devalue, and CBN Governor Emefiele is with him on that. So, what is happening?
Don’t get me wrong,the US has a wide reach when it comes to knowledge on how to run an economy – that is why it is currently the world’s richest economy, but she should not force-feed us something that we as an independent nation have rejected for now.How do we know it is not something we are allergic to, to put it mildly.
The danger with uncontrolled devaluation is that your assets become so cheap that international business can come buy up your devalued industries on the cheap, and who wants Nigeria to face what happened to Russia in the early 1990s, when her biggest industries were sold on the cheap to a few people?
Already, the fallen Naira has made living harder of Nigerians as even the most basic commodities have become super expensive. When the US sends her Assistant Secretay of State to ppressureus, let us , like Obasanjo would do, listen as they advice, but let us remember that we are an independent cuntry, and so the final decision is ours, and for now, we choose not to devalue. Haba.
Read more about the US saying it will pressure Nigeria to devalue: U.S. to press Nigeria on foreign exchange rate flexibility | Reuters
As it attacks Buhari over worsening economic situation in Nigeria.
Due to the difficulty in getting US dollars for import, Nigerian industrialists are increasingly using locally sourced alternatives to raw materials they previously used to import.
For instance, one industrialist told Punch that his company had in the past month been using locally sourced soybeans instead of imported feeds.
The current weakness of the naira has brought a lot of suffering to many Nigerians, but it is hoped that by the time the naira rebounds, which we hope will be very soon, the local manufacturers would have made a decision to stick to locally sourced raw materials.
That of course, will make the country more self-sufficient, create jobs, boost businesses and reduce the amount of foreign exchange we spend abroad.
To support our local industry, Nigerians should consciously buy Nigerian made products. Let’s try to wear more Aba made clothes and shoes. We should have at least one Innoson car in our garage. Let us buy Nigeria more at this period, not just because we have few alternatives, but because that way, we will make our economy stronger.
I also encourage our manufacturers to increasingly self-regulate their standards, so as to gain more respect locally. Let people stop fearing that if they buy your products they would have wasted their money because ‘it’ll soon spoil’.
Let our local manufacturers embrace quality, not sharp profits. A local air freshener manufacturer was recently asked why his air fresheners quickly lost their scent when put to use.He replied that he put only little amount of scents in his products so that people would come back for more. But I assure the man that if he puts more quality in his products, people will come back again and again for more because peopel prize quality over substandard products. Nuff said for now.
See more about how Nigerian manufacturers are turning to local substitutes for imported products here.