I still remember clearly where mum drops the two pieces of coins (Two Naira) for each of us kids so we can buy Sugar and Groundnut for our 'lunch'. Gradually, I noticed it became four coins each, later Five Naira notes, and the rest is history. I am not sure what the five Naira note can buy in the present day Nigeria.
In my short life, I have seen the Naira experience staggering decline in value. Just about a month ago, it got so bad a Thousand Dollars was worth half a Million Naira!
More bothering is the fact that the Naira is also very dependent on the Dollar. Lamido Sanusi, Former CBN Governor - now Emir of Kano - once said Nigeria is the country with the largest Dollar imports. The way the Dollar is referenced in Nigeria leaves me wondering what our official currency really is, Naira or Dollar? It will not be out of place to think that the country with the most Dollars in circulation apart from the US is Nigeria.
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| Photo Credit: Nigerian Tribune |
Dollar increase affects the price of everything from mobile phones, electronics, wheat, sachet water, rice and even common foods like Garri (cassava flour) and palm oil. Do we also import these too?
This only shows how well we have built our economy around importation, especially of the Dollar! Our politicians are also known to cart away plenty of this foreign currency so they can spend during elections, or should we say, save for their generation yet unborn. What other reason will explain why a single individual would have more than 9 Million Dollars Cash! In the same country where the Dollar is in so scarce supply, so much so the margin between the official and parallel market rates is sadly expansive.
The solution however, stare us in the face, everyday. We must consciously develop the local economy. An economy not dependent on others for everything it consumes. Below are points we should give serious consideration:
1. Agriculture
Government must aggressively develop the agricultural sector. There is no doubt Nigeria is capable of producing - in substantial quantities - the staple foods most consumed in the nation; rice, beans, wheat(for bread), cassava and yam. As a result, government must support local farmers with improved seeds, fertilizers, latest technology, soft loans and the education needed to achieve good yield.
More partnerships - like the Lagos-Kebbi partnership for rice production must be encouraged. Government must also be prepared to subsidize the produce (at the early stage) so the farmers do not have to compete with imported produces before they begin to enjoy economies of scale.
2. Infrastructural Development
Government must urgently develop basic infrastructures. For example, Nigerians still depend on imported generators to provide their own power. Most surviving industries also spend a great deal just so they can run 24hrs uninterrupted, on diesel generators.
Therefore, a move at providing stable electricity will greatly boost investor confidence and those of Nigerians who are interested in starting cottage industries.
Considerable funding in the health sector, aimed at building ultramodern hospitals and provision of adequate world-class facilities at existing hospitals will also discourage health tourism. Countless Nigerians spend bogus amounts - not because most can afford it - on medical treatments outside the country. Only until our hospitals and other medical outfits are made competitive with those in other climes will people begin to entrust their health (invariably, their life) to local medical personnel, since the issue is not a dearth of competent and trained personnel but of outdated and inadequate facilities.
The nation's refineries must also be made fully functional. We will retain more money in the economy if the crude is majorly refined locally. The byproducts from crude oil - wax, bitumen, kerosene and much more will serve as raw materials for other indutries thereby creating more jobs. Functional refineries will also eliminate the need for subsidies which Nigeria pays to import oil products.
We could go on and on citing industries/sectors - say, transportation, tourism and housing - that could open up more businesses, create more jobs and ultimately boost the economy if fully developed.
3. Buy Made in Nigeria
This has become inevitable and can only be achieved by concerted efforts from both the citizens (consumers) and the government. Strict measures must be enforced at the borders to avoid proliferation of imported products, mostly substandard, that compete with those made in Nigeria. Heavy duties must be placed on products that can equally be produced in substantial quantities in the local economy, same for luxury items.
Nigerians must begin to buy locally made products - shoes, clothes, rice, poultry and other consumer goods. The little improvements made in producing these goods, year-in, year-out will lead to standardization, until we are able to meet local consumption and then move on to exportation, since nobody will buy substandard products or food items with poor packaging or questionable hygiene.
4. Diversified Economy
The Nigerian economy is largely dependent on the oil and gas sector. This leaves the economy subject to the boom and burst cycles that determine oil prices.
We must develop other key sectors that drive our economy. Agriculture (as stated above), mining, manufacturing, transportation and technology if given more focused attention are able to open up numerous opportunities for business and employment, thereby attracting investors. A robust public - private partnership will make this quickly achievable, as government can not do it alone.
The above will not be possible unless there are favourable policies which the government must demonstrate strong will to enforce.
This is how the Naira can regain its lost value and the economy less dependent on Dollar availability or scarcity.
