dollarsEconomic Recessioneconomynaira effectnigerian currency

Economic Recession: Nigerian Economy and Dollars to Naira effect

The economics define recession as two consecutive quarters of negative growth in gross domestic product (GDP).
However, quoting a commonly used anecdotes, “it says it’s a recession when your neighbor looses his job; it’s a depression when you loose yours.”
Our total productivity has not reduced much (due to the fact that manufacturing accounts for about 7% of our GDP), Nigerians are still as productive as ever but when the big companies are having problem, the effect quickly spread.

I could remember as far back as 2014, some companies have started mass lay offs, especially construction companies.
The devaluation of our currency was the last hammer that brought us recession. It quickens the fall of naira, however I understand the government took because there is simply no enough forex.
The projected DFI that was expected to come after the devaluation did not come, has not come and might not come. The experts are out again saying it was done too late, I beg to differ, and anyway this article is neither about nor for the “experts”.
The rate at which Nigerians are betting against the Dollars, no sane investor can bring his green back. The FDI will come when we achieve exchange rate stability again “chinena”.
Banks I’m sure are already hording forex to edge against exchange risk(more pressure on Naira), presently some of them has already lost more than a full financial profit in that area.
There might be more lay offs (God forbid). Individuals are also saving in Dollars putting more pressure on the already beleaguered Naira.
Now away from formal definitions and terms, how do individuals fit into the economic maze during recession? How can one take advantage of this recession?
What business cans one venture into with respect to the current recession in Nigeria?
The current recession in Nigeria is peculiar, a bit different from the one experience in other climes.
Although, few economist notice, our recession is majorly forex induced full stop. We could attribute a lot of things to why the forex is not

What can Nigeria do to help the situation on ground?
Its true, that we are too dependent on dollars, and that is why our economy reacts easily to the changes, but then, we need to earn more dollars than we spend now, we need more exportation than importation.
As at now many malls, companies ad business centres are even unable to import goods (despite the fact that christmas is fast approaching), the truth is our nation is not productive enough, we tend to import majority of our daily neccesity, because the production level of the nation is still behind.. if we can push further in productive, we can then depend on our own currency and make our economy a great one again.
Nigeria needs to begin to opt in for self-employment, entrepreneurship than just graduating from school to go and get a banking job (as commonly found among the youths today).
Starting Business, growing them into companies, is the way forward, now i know even many ammenities and resources to run huge companies in nigeria too will need to be imported so as to be able to operate at the world-class standard, but we must start!
We must be productive, technology is one major requirement for productivity and exxploit in any nation, and nigeria as a country is never exempted.
The government needs to look into the technology industry and make resources available, we are of buying iPhone from Apple, can’t we develop our own apple company in Nigeria?
Looking into the dollars to naira issue, do you guys even know there was a time in Nigeria when 1 Dollar was equivalent to 1 naira?
Now the same 1 dollar is now equal NGN470…. How do we explain that?
There are a lot of online activities going in Nigeria, as media and web continues to grow globally and in Nigeria too; many ecommerce companies now run adverts online (Facebook ads, google adword and lots more ) to make sales and ear profits, our naira mastercard (gtbank mastercard) for instance, which use to have a monthly limit of $9,000 before, now has $100 as its monthly limit, WTF!!! This is to show CBN and other monetary bodies in Nigeria are doing all they can, to make sure they reduce the rate at which Nigerians spend dollars (buying various services and shopping online) hoping this will one way or the other help the situation of the exorbitant rate of dollars, but i doubt if its will help!
As a matter of facts, they have just crashed many businesses with this new $100 monthly limit spending on naira MasterCard.
Though the last time i was in the bank, i was made to understand that, as part of the change begins with you, and corruption eradication scheme of the Nigerian government, CBN decides that Banks don’t issue MasterCard to new customers until after six months of opening the account and this is in the regard of the usual occurrence of undisciplined political leaders that will embezzle money and open a bank account for their wife, children and relatives and fly abroad to go and withdraw all the money with their MasterCard.
These are the way forward, 95% of the mobile devices that are utilized in this country today are imported from the united state, china and other parts of the world, and since Nigerians love luxury, we don’t mind buying them even at exorbitant rates, we have a lot of wealthy celebrities, businessmen and even individuals in this nation but the mindset of an average wealthy nigeria is “Luxury and Flamboyancy” Productivity and business creativity is not there, we wanna make all the money so that we can spend all the money!
That’s exactly where the problem is!
I hope someone reading this, will find a need to begin to start a business not just to earn money but to grow so that you can employ 1,000 youths and help them stay in good state of living in this country too.
If we have 500 youths start-up a business in nigeria, you can imagine what happens when their business grows and they all can employ 50 workers?
And pay their salary?
The country will become more productive, i am looking forward to seeing a nigerian that produces!
The one that people come from Dubai, Saudi Arabia, Kenya, united state Malaysia, China, India to come and buy our products (not just agricultural products or oil/crude oil) but i am talking of various kinds of products including technological and mobile devices that are manufactured in nigeria.
Our university system needs to begin to equip and orient youths on productivity and creativity.
This nation does not need 5.00 CGPA Students anymore, that will not add up anything to the nation economy and exploits, we need creative minds students with intellectual ability that can foster the development and smooth running of our nations.
Advancement in technology, Productivity and Business startups will equally leads to the development of our nation in a short while.
Kindly share this with friends.

Related Articles

Leave a Reply

Your email address will not be published.

Back to top button