Aykes World

Friday, April 22, 2016

Nigeria's economy in depression

No matter how much the Nigerian government tries to deny it, the economy is in depression. The Naira, the nations monetary currency is already devalued, not officially though. The government pegged the dollar exchange for the Naira at 197-199, but there is not enough dollars in circulation to meet demand. The country is heavily dependent on imported goods, even finished refined oil products which the country is the 9th highest producer. Importers now resort to the black market where one dollar is exchanged for N320 to N325. Yet with all these indices the government has refused to devalue the Naira. The IMF, World bank and financial experts have advised the government to devalue, they refused. Meanwhile, Nigerians continue to buy goods at the price of black market exchange rate.
Price of everything has quadrupled. Money at hand is limited. Purchasing power is almost at zero. Civil servants are being owed salaries months in arrears. Yet the President Mohammadu Buhari has vehemently stated that he will not devalue the Naira. What next for the country we do not know. Many Nigerians have resorted to God and prayer, hoping that one day it shall be well. Will it, I don't think so. Not with the way the present government is managing things.

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