Part of the problem with the Nigeria Economy are reps of the big four: KPMG, PWC, Deloittes, etc. They go on television analyzing rubbish about the Nigeria economy. They bandy mostly textbook economics on tv. But come 2027, there’ll still be no “price discovery” for the Naira.
Nigeria defies everything you think you know! The Naira has lost 98% of its value; thanks to the Master Strategist for devaluing the Naira in the most rash or impulsive manner.
Once monthly FAAC Allocations are shared, the politicians hunker down at the BDCs, & change the Naira to dollars & pounds.
So until you crush corruption. Until you go after currency speculators who are mostly ethnic chauvinists. Until you go after those bank MDs trading the Naira & hawking the dollar for arbitrage. Until you spur production & end the appetite for unnecessary consumption, the Naira will hit N2000 & beyond!
This is a guarantee, & you don’t need textbook stuff to know these things. The problems in Nigeria are no rocket science. They are mostly rudimentary or basic; they require no textbook economists to tell anyone what the problems are!
To fix the rapid depreciation of the Naira requires a “political will & a change of attitude on the part of the politicians.” The change must begin with Bola Tinubu & Kashim Shettima, & trickle down to the governors & the National Assembly.
When they change their corrupt tendencies & insatiable appetite for consumption & unexplained wealth, perhaps the citizens might take a cue from them.
The crash of the Naira is a political problem, requiring a political solution. It not an economic problem in the actual sense.
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Everything the Federal Reserve do here in America, all of those standard best practices will never work on Nigeria. MPC Meetings & Rate hikes will never work on inflation & plug the rapid depreciation of the Naira.
You must have the liquify to signal to foreign investors that Nigeria means business. Foreign investors must have confidence in the Central Bank of Nigeria. Sentiments must show that the CBN can/will fulfill their forex obligations to the economy. No one wants their funds trapped in Nigeria.
Nigeria became a basket case since 2015, & almost 9 years down the line, she continued to defy & mess up your PhDs. The rapid fall of the Naira started during the political primaries of the APC & the PDP. We saw the sharp slump of the Naira when dollars were flying around before, during & after their Conventions.
The politicians sabotage the Naira & the Economy for their selfish political gain. Again, when you go about printing trillions of Naira leading to inflation, what do you think will happen to the Naira?
People will begin to hedge their monies with the dollar. It’s as simple as that!
Leave all the textbook mumbo jumbo you guys parrot on television, your solutions have never worked in over 40 years, & they won’t work; not today, not tomorrow!
Bola Tinubu, Yemi Cardoso & Wale Edun, they know these things, but they won’t implement them because it will affect their political fortunes. Nigeria is a political economy, & everything is politics. There is no governance; politics is 365 days a year.
Bola will offer no explanations, he does well in politics, but fail in governance. He’ll continue to govern & keep to all the promises he made at the campaigns. 👏👏