The fall in the value of NAIRA is largely caused by the decline in the price of crude in world market and Nigeria been a mono – economy state largely dependence on oil, there is invariably shortages in Forex earning to meet our unflinching import status.
It is a simple LAW OF DEMAND AND SUPPLY OF FOREX.
The only solution is to allow the parallel market to kill itself through ” OVER PRICING AND CONSPIRACY ” ( that is whats going on ) after which the LAW OF DIMINISHING RETURN will set in.
When it gets to the peak, foreign goods will be over priced out of reach of average Nigerian which invariably means a return to locally made goods. The more Nigerians return to locally made options, demand for forex will decline and the value of Naira will appreciate with export expansion, job creation, local content and economic boom.
There is no short cut to the recovery of Naira and the moribund economy than increased local productivity and consumption.
Corruption played a very small role in the current trend of the Naira, even in a corruption free economy it would have been a similar scenario except that we will not resort to borrowing, and viable infrastructure would have been in place to cushion the effect of government policies aimed at ameliorating the shortfall in income. Just my view.
MY SIMPLE ECONOMIC UNDERSTANDING, GOD BLESS NIGERIA.
Jeremiah Owolabi is a member of the law class of “18. Esquire is an experienced writer having worked with the Guardian Newspaper and Sahara Reporters. His writing ranges from National, to Unilag, and Faculty politics.