by Saya-Braide Ebi
Please, someone should tell President Muhammadu Buhari that the naira is already devalued. We already have a weak currency in our hands and we must face reality and not relying on 1985 economics.
What was obtainable then can’t even be mentioned in the market place. Ask him if we still do moi-moi inside milk tins? That era is gone.
What percentage of business requiring FOREX obtain it at the official rate?
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Already, prices of goods have gone up, inflation is above 12%. So, every theory Buhari is relying on is faulty.
The question the president recently asked about the correlation between new factories and devaluing the naira, “How many new factories were built because of devaluation?” is childish.
Buhari should rather ask, “How many factories have closed because of this draconian exchange policy?”
If new factories are not being built, must the old ones be allowed to close down? It is is simply inaccurate to say that new factories are not being built.
We all saw the influx of foreign investment under President Goodluck Jonathan targeting already existing businesses and new lines were even being built.
The challenge for rapid growth in manufacturing was largely as a result of inadequate logistics infrastructure and lending habits of banks, and not DEVALUATION as opined by Buhari and his lackeys. It’s no rocket science.
DEVALUATION will give this economy a shock therapy and will revive a dying stock market and by extension a dying economy. Nigeria will earn more naira, through crude sales and borrowed funds and investment in targeted sectors like power and infrastructure will pick up.
I have said this repeatedly before, a weak currency doesn’t automatically translate to a weak economy.
Saya-Braide Ebi is a political activist. Connect with him on Facebook.
