Under Tinubu Naira Becomes World’s Worst
Bola Tinubu assured Nigerians of Renewed Hope when he was seeking their mandate to become the president of the country. Under his watch, the Nigeria’s currency has become the worst among other currencies in the world?
How does the president lead Nigeria and its naira to this particular mess? He started making some policies which adversely affects the currency, and definitely the people of the country, who don’t appear to have tasted a more serious hardship.
The Bloomberg from whom the president takes instructions on economy, passed the verdict on naira. The organisation exonerated itself even though most of the policies of President Bola Tinubu at the inception of the administration went down well with the IMF.
He said he would float naira so as to make it compete with the greenbacks. It would have been a very good decision if Nigeria had been producing and aggressively exporting goods and services. Otherwise is the case.
Nigeria keeps importing virtually everything. A video is being circulated on WhatsApp saying that the Chinese are now exporting garri (a very common staple) to Nigeria. A consuming nation would surely have a weak currency, there’s no doubt about that.
The major goods Nigeria exports is crude oil. It’s even counterproductive to export that. If Nigeria refines crude oil, more dollar spent on importations of its final products would be saved. And Nigeria’s naira would not be as useless as it is now.
The decision to float naira has led to devaluation. Nigerians now seriously groan in pains because costs of living have risen sporadically. More Nigerian businesses have pathetically collapsed, and millions now live from hand to mouth. That’s not the best way to describe renewed hope.
Bloomberg report also said that the pressure on naira has forced the Central Bank of Nigeria to raise the interest rate. All of this bounced on Nigerians. Businesses aren’t moving forward, yet the interest rate keeps increasing just like the cost of living.
The Central Bank of Nigeria Governor Olayemi Cardoso denied that his institution was using the foreign reserve to sustain naira. He boasted about the efforts the bank was making to ensure that the currency performs well even though Nigeria is not producing.
At that time, one dollar was almost N1,000. After the interview, dollar renewed its rampage and rose. It is now close to N1,500.
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