WHY I SUPPORT PMB’s STAND NOT TO OFFICIALLY DEVALUE NAIRA.
By Mayowa Michael Adeleye
Although, Egypt’s central bank just devalued the pound by 14.3% to 8.95 to the dollar to face “challenges” from declining foreign currency inflows. ( https://twitter.com/businessdayng/status/ 709455439143030784 ), however personally, I do NOT support Nigeria to devalue naira.
Egypt does more manufactured products exports than Nigeria. What does naija export apart from Brent priced crude oil ?
Devaluation make sense for countries that have processed manufactured products to export…
Devaluation of naira will lead to skyrocketed inflation that will lead to uprise and protests of Nigerians against PMB led govt”.
PMB will surely consider the political implication of devaluation of naira against Nigerian masses and the labour unions
Devaluing currency of an importing economy like Naija will spell doom for the country. Nigerians live on imported items, from food stuff to clothings and almost everything, including matches and tooth pick.
Naira Currency devaluation will only benefit the exporting countries, which will dump their products in Nigeria and Nigerian consumers will pay skyrocketed exorbitant price.
I know Nigerians very well, they will protest and shut the nation down. Before you know it, the protest will turn political.
Economists talk based on theory not on human feeling or human face. A passionate political leader like PMB can’t do that in a volatile poverty impoverish naija! That is why he is rationing the limited forex available for real sector investments.
But FG needs to talk and explain to Nigerians on the merit and demerit with implications and consequences of naira devaluation! Hence, many Nigerians will value and appreciate PMB’s call for Nigerians to look inwards.
Nigeria is lucky to have a President like Buhari at this global economic downturn with passion for national development.
By looking inward rather than waiting to consume imported products, it will afford Nigeria the opportunities for real growth in local content, with real growing opportunities for local production, local job creation, to create wealth in spite of the challenges facing the economy.
For Nigeria to develop, we must promote local production. Nigerians must understand the current economic realities and give government some chance in its bid to turn around, the nation’s economy, for good. To destroy is easy but to rebuild takes some time.
Michael Mayowa Adeleye, a Canada-based Pharmacist, writes