Topic: Is the devaluation of naira really the problem (Read 291 times)

It's a slap on South Korea when you compare their currency to Naira. When a country has net importation than the exportation, what they have at the end of the year is trade deficit and that is what is happening in Nigeria. You see south Korea, as of last year they exported about $683.9 billion of items and the reason why people are buying there products is because there products are cheap, look at Samsung phones and other product, the electronic circuits and many more are been produced and exported to other countries at cheaper prices, there product are affordable and that is why their currency is lower and hence a stable economy.

As for Nigeria, we have lower exportation of $5.3 billion in total, now do the math with South Korea that has about $683.9 billion, isn't that a shame to us as country. Now, let us compare the population of Nigeria, we are roughly worth more than 200 million people in Nigeria where by South Korea are just about 52 million. With quarter of Nigeria population in South Korea, they produce and export more than Nigeria and you there compare our currency to them, no they are way ahead of Nigeria in this comparison


Nigeria have a lot of work to do, all the sector need to be fix, the power sector need to increase so that industrialization can strive better, road need to be fixed, pipe line security need to improve because the rate at which this vandalizers steal crude oil is alarming and it is affecting our throughput, they need to improve agricultural farming, they need to fix everything because all sectors in Nigeria is not properly. If we can fix all this problems, exportation will increase.


One of the mistake past government has done is not allowing price regulations to be effective, on a norms Nigeria local produce are suppose to be cheaper so that it will compete with international products, increasing local production will also reduce importation if the products are up to standard because just imagine other countries are running after Nigeria products, that will make the country better but local goods are even expensive than imported items, I hope you seen the problem?

Whatever any measure the central bank want to use to fix the stability of Naira, if they don't fix these problems, we will have this problems till another government comes into power.

E get people wey dey our government wey dey benefit seriously from all this things wey you don mention, even the value of naira sef I no sure say dem go ever gree am rise because dem plenty wey dey benefit from devaluation of the Naira so if naira add value dem go loose for their business days why dem no go gree to push for the price of naira to go up at all instead dem go just allow am to fall dey go.

If you dey talk about to import and export especially when e concern technology, e go hard before dem go wan stop am or say dem go wan reconsider am, because most of our big men dem na dia business be dat, na dem be major share holders, one good example na for generator business, e get wan gen dem dey call MIkANO the biggest share holder na Nigerian, and him na politician so dem no go gree make we get light because e go spoil market for dem. So many others dey too, I think dis our government jus need overhauling if not na so we go dey complain dey go. Naira devaluation na least of our problem, if all dis tinz dey fixed naira go get strength automatically but if not them go only temporarily give naira strength after which e go fall again.

Our economy instability is caused by bad governance, everything wey you dun talk all leads to bad governance because if we been get government wey dey work we no for get bad road problems, education problem, bad transportation problems as na the work of the government to put all those things in order but na as we no get a working governments na wetin dey make the economy of the country dey suffer and the devaluation the f the Naira na just the results of all this. I believe persons wey get sense go know say e get reason why the Naira dey fall and no be just say e wan fall. Our country is just for consumption as we no get another reasonable thing wey we dey export. The oil wey we get, we no dey even use am well because if our governments been get sense dem for dun invest well for refinery so na we go dey refine the crude oil, getting other byproducts from it and not exporting oil and begging for fuel.


By now the government supposed dun realize say increasing the value of something or reducing the value of something (when other things that are needed to be done to keep the price of that thing stable isn't been done) no go get any effect. Dem need to learn from the dollar saga, fuel wahala and do things right. If dem do the necessary things the economy go stable and the Naira go rise without the government having to manipulation the price. We need to change the narrative of the country, new need to start to dey export more by increasing our production of some of the things wey we're been known for producing at a low quantity in the country. This one go also increase the job creation for the country and our youths will be employed to work in the factory's that are now been used to increase production in those commodities.

The truth of the fact is that until all these issues are settled to it's fullest, Nigeria can never have a stable economy, and likewise will our Naira keep falling to Dollar every time, because as of the time of writing this post the Dollar which was said to have been normalized back to #900 per $1, has currently fallen back again to be sold at  #1100/$1 on black market rate, which if care is not taking, I can see it hitting #2000/$1 before December, just as fuel has gone up from #650 to #700.

Henceforth, until our country start to stop been a consuming nation to a producing nation whereby we export more than we import, and create a conducive atmosphere for businesses by proving good roads and constant electricity, we go keep on with this suffering.

IMO OP, i think we as Nigerians is not making good use of our Natural resources. I said this because even in our country the price of what we produce here is quite very expensive. Most of the product here are being sent outside the country for little touches or refining and when they bring it back here they wiill increase the price of the goods yet we will still buy them. The thing that hurts me the most is that we dont value our produce. We see it as lesser products and those imported outside the country are the Original product. This alone has made some local manufacturing industries to shutdowns after they have lost the zeal since they are not patronized. We have our local rice and i herd its very tasty but how many of us do eat it lest be sincere?

Once we start appreciating what God has gifted us with then we that is when we start seeing it as something valuable and make good use of it to the country's advantage.

If that was to be the case then check the comparison of Korean currency to US . Its  still feels awkward to see Nigeria  crawling at this stage despite  all we have and worked for to the very extent of getting  freedom,  I believe  Nigeria citizens should  star contributing to the growth aswell  apart from putting the blame on the Government.  Yes, we know our government is driving the vehicles of this so call our situation  but we could try easing it a little  bit amidst ourselves. If the Government aren't ready let's proof ourself.

Government holds our key to betterment  but if they aren't showing a sympathy  lets  push then to doing  so

Who will heed to this lol, its a question we all have to answer and it starts from somwhere

The most important problem we have in this country is our economy, had it been our economy is in a good shape no body will be lamenting too much in this country and lack of good and quality economic team is one of the major cause of this economic crisis. How can a government appoint ineligible and incompetent personnel to handle economic activities of a country.all they know is to emblezzle government funds then channel the blame to fire outbreak in finance offices, python swallowing money and so on. Isn't it ridiculous to say that python swallowed government money like I don't even know if this people have conscience at all.

See my own opinion is that we should just return back to Britain, let them rule us again so that we can be able to learn from them because for how long shall we continue to live in this disaster even when we've got all the resources to make us a great nation. A country that was once swimming in economic growth now is struggling in the international market. Isn't it shameful that we have someone as the director general of the world trade organization yet we ain't making any progress in our dear country.

Government that is suppose to serve in the interest of their citizens are now taking decisions on their own without considering the effects on the masses, all they know is embezzling government funds in the form of projects, awarding contracts to incompetent personnel. Not rendering good and quality service to the public, our schools, health centers are in dilapidated situation. No quality industries and factories that will aid the youths in gaining employment. The rate of unemployment is on the increase, so many jobless graduate on the streets. Tell me why people will not get involved in crime and fraudulent activities in other to eran a living.

Until we rise up and look for a solution to this lingering economic crisis, the better for us because if we still continue in this nature, then am afraid the rate of crimes will be on a high note. Instead of the country seeking for disintegration I rather prefer resource control, let all state manage their resources and give revenue to the federal government, let the states be autonomous as these will bring government and other benefits closer to the people

I don't believe that the devaluation of our currency is the problem we have in this country, our wrong perception about things, our mentality and the way we follow matters are the things that is really drawing us backwards. Imagine a politician who is elected into public office prefers to choose his allies and loyalist as his cabinet members leaving behind people that are intelligent to give him right opinion on how to govern the people and profer solutions to problems. This mentality has really aided in taking us backwards over the years because inasmuch as you employ or appoint incompetent personal to take charge of some government functions you will find it real difficult to manage the affairs of government because the way you reason may not be the way they reason, they have nothing to offer.

 We should know that appointing people that are not competent just because they are our loyalist will rather cause us more harm than good. We should say no to favoritism or nepotism as trying to please people who are either our friends or relatives can jeopardize ones reputation and integrity because since they are your friends and relatives, some certain decisions you would have taken on them when they do wrong, you may not be able to take it again due to the fact that they're people that are close to you.

Again what baffles me in this country is that as soon as their is an increase in the price of a goods or commodity, you see the price of every other thing increases. This has also been a major problem we have is this country. Imagine when fuel price increases, both traders, transportation, services and other things increases after everybody will start pointing fingers on the government, I don't know if government is the one selling your garri for you. I want us to understand that you and I are the government, so we should be more focused on things that will bring about positivity to our environment rather than be involved in things that will disintegrate us because at this hard time we all need each other to make things right is this country as there is a saying that "a tree cannot make a forest" so our leaders can't do it on their own without you and I being involved so the growth of any country begins from her citizens so we should be more focused on things that will unite us.

Lets not drag the issue, the fact remains that, devaluation has done more harm than good. At first instant while will a country devalue her currency in respect of another currency, do you think countries that desire that our currency should be devaluated are not up to something. Aside the devaluation and other factors you mention here, it will be wise if the federal government can build railway to link all the states together such that one can travel from one state to the other with train. That will help to convey people and product faster and cheaper

If true that more is imported to Nigeria than it is exported from Nigeria then it should be believe that we are attracted to foreign investors which is supposed to create us financial revenues by task payers?

Do you also know that oil resources is a one most important resources in the world due to its potentials that it is aided to supply transportation energies including medical substances such as drugs also useful on momentous technological materials as contact lenses, bandages including heart valves also as liquidity preference to supplement several chemicals and other related technologies. etc.

I bet the importance of the above mentioned are global essentiality which Nigeria take chances of being a number one oil producers in Africa after surpassing Angola and Libya within the range of 1.249 millions BPD making and ranked at an average of 15th worldwide oil producing country.
On a norms the oil exchange value in trades alone is dependable enough to supply the national budgets with over 90% by its revenue.

However, Nigeria does not only lean on oil resources but also as at agricultures and industries which also have world class roles to offer and provides reliable international revenues.


We are actually and currently faced with rebellious conscienceless and selfish leaders who has no practices of humanity and lacking proper economic teaming system but excellent in the ethnicity biased and a monopoly governing system in the country else we have all the necessary amenities to support and boosten these sectors that are potentialed to elevate our revenues sources.[/list]

I don't know whoever brought up that idea to devalue our local currency but trust me the idea was the wrong one. However if you want to build a strong currency, we will need to increase our export to gain more Forex into our economy and also to increase the productivity and to expand our economic hub. Like Peter Obi will say, we need to move from consumption to production, that is the only way we will give our local currency value.

In agreement too with all that have been said, we get root causes of the naira devaluation, and except say we tackle di problems from di root, na so di naira go just de devalue de go. Intact naira devaluation na di effect of all dis things dem wey una mention so, because e no de gree me comprehend why we be oil producing country, wey even get excess to de export to oda countries, still we de import di finished products wey be fuel. Because our refineries don turn to artifacts for museum, wey im only usefulness na to de view am, instead of am to de refine products optimally. I believe say corruption follow do us for Nigeria, dat na why refineries, power sector, local manufacturing no fit work, because if e work, di corrupt officials dem no go see opportunity embezzle money again.

So if dem kill of minimize corruption in high places for Nigeria, hopefully di naira, go gradually de gain strength again, because if people wey dey for government go make our refineries to work, power sector to work, create enabling environment for investors, encourage local manufacturing and so on,  di economy go de beta.

For all the times wey naira don rise against dollar, you don ever see any meaningful change in the economy of the country or an improved means of livelihood, e no dey neh my guy that’s why the valuation of naira won’t solve any problems arising from the economy problems of the country. Many tins dey wey go make Naija better pass like dis, and if them no face am well, e go continue to dey worsen. As the popular saying which is happening to our Naira  against dollar, naira wey rise go still fall and that is what have been happening even some weeks ago.

This is a great point right here. In Nigeria we import almost everything. Let me start with the obvious. We have refineries in Nigeria but we import our fuel. In fact if you have ever thought about using a locally-made item you are seeing as a poor person. There is a sort of classism wheat importation. What I mean to say here is that you are considered a rich person if you have an imported item in your possession.

Made-in-nigeria goods are seen as inferior and substandard so instead of the government to patronize innoson vehicles, Nord vehicles they prefer to import Toyota and all the foreign companies. We have more goods coming into the country and empty containers leaving the country. These and many more leads to a weak naira

The curriculum is not the main issue, in fact the curriculum is still working fine, the main issue here is the
Frequent strike, lack of proper amenities for research, hike of school fees, exam malpractice and corruption.

There have been various reasons aside ASUU why most schools go from strike lately while this year in some federal and state university students have been on riot all because of the school fee hike.

We can say we are taught the theoretical aspects in Nigeria universities and it becomes worst when your course of study is more of practical than theory like those studying biochemistry, microbiology, chemistry and other highly practical courses. The course outside Nigeria are highly respected but in here they have little or no value even most studying didn't choose these courses they where transferred to it and they continued with the mentality of make I just get bsc and then start a business or do something else while those who are able to further will be grateful to God if they can study outside the country because even if you get PhD in these fields your knowledge will still be vague simply because of inadequate research facilities.

Exam malpractice and corruption has been the worst in academic, malpractice in common entrance (primary 6 exam), malpractice in junior waec(JSS3 exam ), malpractice in SSCE (waec and neco), malpractice in jamb and post utme and then malpractice and blocking till they graduate or to end the hassle someone can just go buy a certificate from the school. Imagine someone who did graduate like this what does he/she has to offer the society.  Funny how we criticise governments on buying results when we do such that also.
those not meriting a course will be given admission even with their low grades simply because of connection the ones with the cut off mark will be turned down is part of what affect the education system in Nigeria

When we look at all we have been going through in this country, sometimes you will be tempted to ask if we still have government in this country, because to me naira devaluation have nothing to do with the hardship the common men are passing through in this country.

During naira scarcity I keep asking myself that how could a currency of a nation as we country naija be scarce in it territory, that shows the higher level of bad government we had.
Let's Look at subsidy removal for example, they can't just remove it without making provisions, by making our local refinery to be up and running.

It very heart breaking that a country that is one of the leading exporter of crude oil don't have an actively working refinery back home.
The dollar too naira value don't have much impact on the price of things in this country compared to the subsidy removal, we were hit hard by the removal because it affects even our local farm products due to inflation of transportion.
We just pray for God's intervention.

You are just not wrong at all. The root cause of economy instability in Nigeria is not solved. As of today, Nigeria is importing refined crude oil products, electricity supply is bad and Nigerians have lowest access to electricity in the world. We import than export. The government do not encourage production of locally made products. People may think naira appreciate in value recently, but it will still later continue to depreciate because what are causing the economy instability have not been solved.

if you observe well, once fuel price increase for the market, e de directly affect other goods immediately. The transportation people go first increase there price And then market people go join and before you know everything don top price. We know say the difference between dollar and naira done de too big and e seriously de affect goods when we de bring come from the outside country but if we really wan de truthful to ourselves we go know say apart from petroleum product when in the real sense na we de export am, we no really de import small small items when d average man de use that much from outside we country. Wetin de even vex me na the way local producers de make things expensive for the country but when de carry the same goods comot from this country them go reduce price for those people. Our problem just plenty and most of them na we de take bring am on ourselves.

We no even get much of this local companies, even the ones when de in existence done already turn the business to a monopolistic one and e de very difficult for small startup to enter into business so when these monopolistic companies decide to increase price, we no get choice that much than to just flow along with them.

I believe say no be to just focus on the problems we de face be the main thing na how to take solve am na him we suppose de reason.

Personally I think say if we put more effort into producing more of our local goods by ourselves, we no go too de depend on good from outside country and this also go reduce the price of goods for the country.
Enough emphasis too need to be placed for the agricultural sector so we fit produce more food know say na other things wey we no fit produce we go de import.

Our schools also need to change the kind of things dem de put for there curriculum. E go make sense Make we really identify wetin be our problem and make sure say we train the younger ones on how to take tackle this problem, you go see say we go begin experience serious positive change for we country

E de pain me to know say we de import things when we get the ability to produce on a very serious note. I know wan de reason go the part when we de export crude come de import petrol.


God go help us

These is one among the factors that has been causing the devaluation in our currency. Just as in economics that the higher the demand in a commodity, the higher the price as well, our dependency on foreign products is too much because inasmuch as we give more values to things imported into our country, the more we are giving that country's currency to gain strength over our own currency.

It is important for us to value things we produce in our country rather than always importing things from foreigners, even if our products ain't in the best standards but we can reason together and find a way to make them better and of good quality. We need to reduce our high rate of importation instead we should export more of our products abroad.[/list][/list]

Most Of us Nigerians get it wrong on what is causing our economy instability to move from worst to worst, most of us thinks the naira devaluation is the cause of it which is not true but the devaluation is as a result of some of these factors below which I will give you a clear reason for this, because 1 naira is greater than 1 south Korea won but South Korea has a stable economy and  this reasons include:

• Commodity imported to Nigeria is greater than the commodity exported out of Nigeria and this has caused inflation in our country, our focuses has been more on exporting oil which is affected by the Russian war, the price of oil is volatile while south Korea focuses on exporting technologies like electronics, machines and others.
• Nigeria has less financial systems supporting businesses and our bad road, insecurity and power supply, has affected our productivity in the likes of getting farm produce or raw materials and this has been a discouragement to foreign investors while South Korea does not lack in any of this
• lack of proper education, corruption and bad government has been among the major decline of our economy while in South Korea education has a really high standard and the corruption there is not like ours while the government are still alot better than ours.

Question
Will the increase of the value of naira makes the country ore stable or except this problem is solved our will continue to devaluate?