19/02/2024
On FX & The Nigerian Market:
First of all, it is sad but the truth as of this moment remains that at this rate, we may never return to the days where the dollar sells below ₦1000. I'm not saying it's impossible, but it would be a miracle if it happens.
However, that's not much of the problem. What is more important is that the CBN must now begin to do everything within its means to immediately stop the seemingly unending relapse of the naira while ensuring that the currency finds stability in the forex market. The rates does not have to go down immediately, but for a start, it must be stable. This is the only way to fix the volatility & uncertainty in market price of items (food & other consumables) which is the biggest source of worry for common Nigerians at the moment as prices continue to skyrocket due to the very disturbing naira-to-dollar rate.
Also, the CBN Governor may do everything right to fix the monetary side of the economy but if efforts remain minimal on the fiscal side, then things will continue to remain as bad as they were, or even worse.
We must know that the CBN does not produce dollar notes, hence they can only work with what is available in managing the pressure on our local currency. On the fiscal side, Federal Ministries like the Ministry of Agriculture, Ministry of Tourism, Ministry of Trade & Investment, Ministry of Marine & Blue Economy alongside others must begin to pull their weights towards attracting FDIs which would improve and sustain dollar inflow into our economy.
The Ministry of Finance led by HM Wale Edun must now more than ever begin to tighten up on fiscal discipline & responsibility. All leakages must be blocked, all loose ends must be tightened & the government must be conscientious with their spending. We must begin to find ways to shore up our foreign reserves through foreign direct investments. We cannot be complaining of poor inflow while our government continues to spend on SUVs & other frivolities as if they are hip-hop artistes.
More importantly, Ngerians must understand our current reality. The truth remains that economics does not offer solutions, it offers options. We cannot eat our cake & have it, we must immediately begin our journey towards self sufficiency through massive local production while also reducing our appetite for consumption of imported goods.
The FG must as a matter of urgency prioritise internal security so that our local farmers can return to their farms without fear while food transporters also go about their businesses with ease. This is the only way we can enhance food security and by extension, crash food prices.
Like he equally admitted, President Bola Ahmed Tinubu campaigned for this job, he danced around Nigeria for it, so he should not be pitied. Nigerians must now begin to talk solutions & the Tinubu-led administration must begin to listen.
It remains my prayer that Nigeria will succeed & flourish in my lifetime!
~Temidayo E. Ayodele ✍🏾
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