At the recently held 2024 Vanguard Economic Discourse, the President of the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), Dele Oye, was the Guest Speaker, where he attributed the current crises in Nigeria to botched economic policies of the government, such as the currency redesign, removal of fuel...
At the recently held 2024 Vanguard Economic Discourse, the President of the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture , Dele Oye, was the Guest Speaker, where he attributed the current crises in Nigeria to botched economic policies of the government, such as the currency redesign, removal of fuel subsidy, and the floating of the Naira.
Further compounding the crisis, President Tinubu allowed the naira to float freely, which resulted in a dramatic devaluation, making imports significantly more expensive and pushing inflation to nearly 30%, with food inflation at 35.4%. This devaluation, coupled with fixed wages, eroded purchasing power and strained businesses that depend on imported raw materials and equipment.
The abrupt currency redesign by the Central Bank of Nigeria , under Godwin Emefiele, caused widespread panic and loss of confidence in the naira , driving people to foreign currencies and cryptocurrencies. So you have the US, EU, Japan, Norway, Australia, and others. Then you also have a set of countries that have stronger fundamentals than Nigeria, that is, Qatar, China, and UAE. They don’t sell their currencies the way Nigeria sells. You know why? They have governance. The Emir of Qatar can change the price of their currency by decision. So, the investors in the US will not bet on that currency because it’s subject to political changes.
So, what I’m saying is this, this thing is not by textbook, you have to look at your peculiar situation, and do what you have to do. And I can tell you whoever is asking them to do this, they are not doing it in their country.Every country defends her currency. You can see what America is doing to China to slow them down, so that America can continue to prevail. You can see the way they protect their industries. Look at what they did with Huawei.
Based on the forex policies, there has been significant inflation or hyperinflation. The figures from the National Bureau of Statistics are not in tune with realities on ground. There is no doubt that inflation in Nigeria is more than 100 percent. But I understand, we should have something which we can use to negotiate with others.
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