News coming out of Nigeria does not look good. It is becoming obvious that the APC led government does not have a clear roadmap and strategy after one year of governance. Things have gone from bad to worse. Rich and poor are crying. Both local and foreign investors are running scared. The government has not been consistent with any monetary policy except that they will not devalue the naira and peged it at N197 to the dollar. But the effects of these policies are beginning to tell. Recently Central bank of Nigeria said it will stop its 15 months old peg of the naira to the dollar which definitely overvalued the currency. They will now adopt a new flexible monetary policy, and will issue guidelines at the appropriate time. This has got investors scared. The result will be speculation and that's not a good thing for the economy which has taken a lot of battering.
With the present monetary policy, Nigeria is owing airlines over $591m and cannot repatriate the money, because they can't. Why? One is made to ask. During Jonathan's government the country did not have these problems.
Iberia airlines has stopped the Nigerian route, United airlines will follow on June 30th, Lufthansa and British airways are studying the situation.
This is not good for the country and what is the government doing about it? Nobody knows. Not even the government, by the look of things. Their solution is to arrest opposition members and pave way for the return of APC in 2019.
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