Since the incumbent administration assumed power, there has reportedly been a notable deterioration in Nigerian economy. Inflation has surged, social facilities and infrastructures are in dire straits, unemployment rates are skyrocketing, and insecurity continues to run rampant. The resurgence of kidnapping and the prevalence of other various criminal activities further exacerbate the situation within the country. Nigerians once held great belief in President Bola Ahmed Tinubu’s capacity to bring about positive change, prior to the 2023 election. However, the prevailing narrative has changed due to the immense hardships experienced within the nation.
Despite the continuous cycle of ineffective inheritance and liability transfers from preceding administrations, there is growing consensus that the current government has fallen short in providing resolutions to the longstanding issues faced. It is believed that the government has clearly demonstrated a lack of capacity in devising economic strategies that can adequately address the economic situation, a matter that has had a detrimental impact on the depreciation of naira. Currently, naira has fallen beyond N1000/$1, a situation that far exceeded Nigerians worst expectations.
Additional debt may potentially lead to a worse situation.
Current exchange rate of the naira in the Foreign Exchange Market is currently causing alarming inflation levels, which pose a grave threat to both individual Nigerians and the entire nation. While the government’s attempts to tackle the depreciation of the Naira cannot be disregarded, it is rather disheartening when it proposed that a loan of $10 billion will be utilized to stabilize and enhance the value of the currency. This approach may potentially result in unfavourable outcomes, further aggravating Nigeria’s existing burden of daunting debt as the Naira continues its downward spiral.
Taking on additional debt may potentially lead to a worse situation for both the Nigerian populace and the nation as a whole. It is not an optimal resolution for the devaluation of the Naira. Furthermore, the dilapidated state of roads across the country is nothing short of disastrous. Aside from hampering the transportation of citizens, these dilapidated roads adversely affect the profitability of commercial activities due to increased operational expenses. Even investors experience diminished profits due to the high transportation cost, which affects the price of our goods in global markets.
Robust policy options and forward-thinking perspective is required.
On the other hand, areas with poorly maintained roads give advantages to kidnappers and armed robbers, exposing the citizens to an increased level of insecurity. While some groups of individuals welcomed the elimination of fuel subsidy as a means to reduce corruption, the consequent rise in prices for goods and services has created a contrasting viewpoint among the majority of Nigerians. The government’s inadequate policy formulation and implementation reflect a lack of depth and creativity, suggesting a need for improved policies guided by more innovative and imaginative approaches.
The current economic crises affecting our nation calls for a practical approach and a fresh outlook. To tackle the devaluation of our currency, one effective solution is to transition from a consumer-based economy to a technology-driven production economy. Moreover, the government should explore the possibility of expanding the private sector and increasing investment in the solid minerals industry. Robust policy options and a forward-thinking perspective are urgently needed to address these challenges. Achieving a robust naira in the foreign exchange market can be most effectively attained by maintaining a favourable trade balance.
Implementing robust industrialization policies can help Nigeria.
Furthermore, it is crucial to develop a more advanced agricultural industry that will reduce our reliance on imported essential food items. This requires the development of an advanced system that will allow us to transform our agricultural and mineral resources into finished goods, thereby eliminating the need for imported products. This strategic move could help Nigeria achieve a favourable balance of trade and also pave the way for the country to excel in international trade. Effectively implementing robust industrialization policies can see Nigeria become a net exporter of finished products across various sectors, including solid minerals, as well as food and cash crops.