How Much Naira Do You Want for US$1?
Are there any loyal Nigerians that will prefer N10 million to $1 million? What about N100 million? Simply put: set your own exchange rate – how much do you want for US$1 in your pocket? Okay, would you like to ‘japa’ if $1=NGN0.50 Kobo?
It is irrational to choose to hold the naira and that has nothing to do with nationality, it is more of rationality garnished by economic capitalism.
What it means is that the naira is weak and irrespective of the volume, it has a tendency to be used less compared to the U.S. dollar. Then, there is a problem. Who can fix it? The Central Bank of Nigeria? The monetary authority gets us to where we are in Nigeria as currency managers.
At a point, Federal Government must have, whether deliberately or otherwise, gotten the nation an incompetent manager to lead the apex bank. Not totally, it is more of government policy.
This explains why the monetary policy authority’s independence is key to price and exchange rate stability. Like Michell Obama’s catchphrase, “When they go high, we go Low”.
That is what it is all about for monetary and fiscal authority but they have always been in competition. TrustBanc Capital Limited wrote that in 1981, N1 million would get Nigerians $1.5 million. Ten years ago, the same amount will you $6, 400. Today, you will struggle to get $1.400 with N1 million.
We are the problem. Everything about Nigeria is foreign – even our brains. Look at anyone near you now, everything s/he is holding, wearing or even eating would likely be 75% imported.
Ladies wear hairs that are imported, clothes including underwear. Men wear almost everything imported and children don’t even do local moon play – they prefer cartoons. Nigeria doesn’t produce one!
The next time you want to blame CBN for the Nigerian naira woes, take a look at yourself and be a good judge. Nigeria can never move forward if the government continues to feed more than 200 million people with imported ‘stuff’.
Don’t get comfortable with it, Naira is going to fall further unless there are massive economic reforms that trigger productive activities in Nigeria. This will not happen with an erratic power supply, bad politics, and a penchant for imported goods. #How Much Naira Do You Want for US$1?