The problem with the Naira today is not that it was or has been “floated”. In any case, we no longer have the oil revenues (for various reasons) to underpin a managed float with robust foreign reserves.

The real failure of Nigerian economic policy is that of having failed to diversify its economy away from reliance of natural resources for forex supply towards an export economy based on value-added manufacturing and services.

This is the zone of industrial and trade policy. The reason for this failure lies in Nigeria’s political culture that fosters a rentier economy.

Habits, especially bad ones, are hard to break. But Malaysia, Thailand and Chile, all originally resource based economies, successfully achieved “economic complexity” over time, manufacturing and exporting increasingly sophisticated products.

For Nigeria to achieve this will require what its present generation of politicians appear to lack, for you cannot give what you do not have. The level of political will required to change course is extraordinary, and requires a focus on merit and competent technocratic management rather than crony- empowerment based on vested self interest.

Until these fundamentals are fixed, there is little hope for the Naira. The world has changed from the days of our being awash with oil money. Many other countries that are not in OPEC now produce massive amounts of oil.

Angelfrost:


This is impressive, lengthy, yet shockingly lacking.

You ended up being thrifty with the real truth (or maybe you don't know it).

Check the 70s and 80s... Why was the Naira stronger then??! Answer: Low importation compared to high levels of exported commodities.

Today, you literally import everything, and you pay in Dollars! Your demand for the Dollars is astronomical!

This has nothing to do with Dom accounts or people saving in Dollars... That's a secondary symptom of the main ailment.

Create a strong demand for the Naira by drastically cutting down on importation, starting with the main culprit "Fuel", and watch the Naira massively appreciate.

With the appreciation of the Naira, people will save more in Naira and no longer see the need to hold on to foreign currencies.


So please, quit going after symptoms or easy targets instead of curing the disease! Lead and the masses will follow!...

Dom accounts didn't crash the Naira... The crashing of the Naira gave rise to an increasing need to save in Dollars.

EreluRoz:
Ajaokuta steel is lying there abandoned and not active, that alone can solve a whole lot of mess in Nigeria but it must be only oil.

Youth of the country are still sleeping, the few ones in position to make a solid statement are worse than the old corrupt leaders.

When we are all ready for revolution, you can call on me for support.

Meanwhile we should keep praying for asiwaju to succeed because he obviously has good intentions for Nigeria.

nlfpmod:


Kingsley Moghalu

nlfpmod:


Kingsley Moghalu