This will be a very terrible option.

Attempting to solve a nation's currency and economic issues by denomination when the currency is unstable is extremely unsustainable.

No rational person will believe in the new artificially pegged value.

We will spend extra billions which we don't have in printing new notes, and the issues of swapping old notes for insufficient new notes which we saw in 2022 will resurface.

We will spend more FOREX in trying to defend the newly denominated currency.


WHAT WE NEED TO DO INSTEAD:

1. For Nigeria to start fixing itself, we need some money, which has to be free money, and the first place I could think of is the Asset Management Company Of Nigeria. That organization has hundreds of billions if not trillions in properties in its custody which can be sold of to Nigerians in the diaspora. This will furnish us with the initial funds we need to get to the next step.

2. Acquire billions worth of actual ultra-modern security equipment, especially military drones from Iran and Turkey which have proven to be fairly inexpensive, yet quite effective in various terrain. Without restoring security in Nigeria, we're wasting time in any attempt at improving our economy or currency. Nigerians will keep fleeing abraod, and for every individual who leaves Nigeria, they buy an average of $10,000 worth of foreign currency to leave this country, and go to spend abroad.

3. Start locally producing all the top 10 products we import, starting from Petroleum including Petrol (PMS), Diesel, and Jet/Aviation Fuel, then increase purchases of Innoson and other local vehicle manufacturers starting with Government making all its vehicle purchases locally, then also investing a percentage of import duty on foreign vehicles into local vehicle manufacturers. This alone will get rid of 50% of our imports which make us demand FOREX, and that should reflect in the Naira stabilizing to almost N500 to a dollar. Plastics are a byproduct of the Petroleum industry, so once we start refining all our local petroleum needs, we won't have use for importing plastics.

4. Sell as many licenses as possible to power generation companies, and liberalised the sector so that they can produce as much as they want, and sell at willing buyer willing seller prices. This will help us improve manufacturing of other goods and products we need in Nigeria, because lack of power is the main hindrance to local manufacturing.

5. Improve the transport system fast, and charge appropriate prices. If need be, invite the Chinese and Indians to build, toll roads and transfer after decades of recouping their investments. Rails too should be on a basis of build, operate, and transfer. Improved transport system will help movement of goods and services to improve the economy, and an improved economy could see more foreign investors flood in with FOREX, which would boost the economy, and could improve the Naira.

6. After 5 to 10 years of implementing these policies and monitoring results, we can review if we really want to redenominate, or just let the currency appreciate as much as it can. The key in all this is to remain resolute and follow up on all our policies:

a. Nigeria needs at least 220,000MW of electricity as at today, both for production and consumption. We must not relax once we're able to generate 50,000MW and everyone begins to have uniterrupted power at home. We will end up being a consumer nation, importing more and more electronics and other electrical appliances to enjoy in our homes. What we need it that extra amount of excess power which will force us to think of what to produce with it, and encourage all the previous manufacturers who have left to return, or tempt new ones to arrive. In producing electricity, let's remember that Solar and Wind are key, so we must ramp up manufacture of panels and turbines locally.

b. Patronage of locally manufactured vehicles must be encouraged at all levels, both private and public. The local manufacturers must see Government funding in terms of direct patronage and also investment of import duties on foreign vehicles. After 5 years of starting such policies, import duties on foreign vehicles has to become so high that only only the 1% richest Nigerians will be able to afford imported cars.

c. Modern and Sophisticated Agriculture must be promoted and supported. Governemnt must begin to facilitate and encourage the use of the most advanced farm equipment in mega-farms across the country, where farms can join up their parcels of land and industrially farm cereals and other staple crops till we end food import and become a renowned exporter of food.

d. Transact our import and export in our own currency. The time of making any foreign currency a medium of buying and selling must come to an end. No Dollar, no Pound, no Euro. If you need us more than we need you, but in our currency; If we need you more than you need us, we will buy in your currency.

e. Justice System must work so that corruption can die. Millions of people can not be labouring for the country, then thousands will be feeding fat on their sweat. Every Nigerian must be sure they'll get what's due to them before they can join to make things better.

f. Transport System must keep improving till we have high-speed rails and good multi-lane highways connecting all major cities and towns in the country.

g. Revolutionise Fuel & Energy in Nigeria so we don't continue to focus on Crude Oil, Coal, and Hydro Dams as the world moves on to Solar, Wind, and other Renewable Energy options. Explore recahrgeable batteries for vehicles, homes, offices, and factories so that local production will not fall out of line with the Global Carbon Credit System which will be implemented eventually.

dre11:
• Economic team moves to table plan before President –Source

• It’s ill-timed, doesn’t address problem of rising inflation or depreciation of currency –Prof Uwaleke

• Only fresh injection of FX, extra revenues can check Naira’s fall –Idakolo



https://newtelegraphng.com/fg-mulls-redenomination-option-to-stabilise-naira/

Seun:
If $ goes from N1000 to N1500, people will scream. If it goes from N1 to N1.5, people may scream less, though it's EXACTLY the same thing, allowing you to continue to debase your currency.

But we won't have notes carrying multiple zeroes, we won't have to carry plenty notes with little value and we would still exchange that N1 for $1 at the bank. Isn't it worth it?

nex:
This will be a very terrible option.
No rational person will believe in the new artificially pegged value.

By the time people get N50 note from the bank when they want to withdraw N5000, they'll be forced to accept the new currency and it's value.

nex:

We will spend extra billions which we don't have in printing new notes, and the issues of swapping old notes for insufficient new notes which we saw in 2022 will resurface.

We will spend more FOREX in trying to defend the newly denominated currency.

This is true but when the naira loses too much of it's value, money would still be spent to print 2000 and 5000 naira notes. Abi no be so?

Exactly what I said in 2007 when Soludo was suggesting redenomination.

Seun:
Redenomination is a license to print more money. If $ goes from N1000 to N1500, people will scream. If it goes from N1 to N1.5, people may scream less, though it's EXACTLY the same thing, allowing you to continue to debase your currency. SACK the "experts" who suggested this 💩.