On today’s episode, we will be discussing the Nigerian Naira. How strong is the exchange index and what are monetary alternatives for citizens experiencing bankruptcy?
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The Naira is Nigeria’s official currency traded 99% within Nigeria. To trade outside Nigeria today, Nigerians need approximately 750 Naira for one dollar. The Central Bank of Nigeria has net reserves of approximately 17 Billion Dollars and 20 tons of Gold. The strength of any currency lies in the nation’s leadership strength, monetary policies and debt to development ratio. Nigeria, a naturally wealthy country of over 200 million great minds, vast arable land, and ample natural resources, lacks stable power supply, well-educated human capital and necessary infrastructure for industrial prowess. The Kobo, Naira and eNaira are symbolic of Nigeria’s strength as a nation and should therefore, be treated most usefully to achieve a dignified standard of living nationwide. Increasing Naira’s foreign exchange value can be achieved with intelligent financial practices and a significant increase in trade surplus and currency reserves.
As Nigeria’s debt increased by over 300% to over 100 billion dollars, Nigeria’s international trade balance decreased from a surplus of 86b usd in 2012 to a deficit of 9 billion usd in 2022. This, can be attributed partly to changes in global oil trade and COVID19 but mostly due to a lack of foresighted development in diverse trade and highly essential infrastructure. In 2023, an end to fuel subsidy was announced, despite rising inflation, while many millions live on less than 1000 Naira daily. As the middle-upper class decry dollar scarcity and trade difficulties, the middle-lower class decry bankruptcy and Naira depletion. With 96% of Nigeria’s revenue being used to service debt, there is not much left for developments when one considers the very high cost of governance – that is being run on debt and more debt. We await imminent decisions on the 30,000 Naira monthly minimum wage as many Nigerians are spending over 99% of monthly income on food and religious activities with little income left for anything else. Dependency on, or preference for, foreign currencies and foreign products, can be regarded as one of Nigeria’s and Africa’s heaviest chain of colonial exploitation.
Concluding Remarks on The Naira:
The current Naira formula is petro-dollars minus effective leadership which equals high poverty. What new formula are we creating today for our children and many generations to come? The Naira can be one of the world’s strongest currencies with strong decision makers, strong industries, strong education, strong citizens, strong actions and a strong vision. Greater widespread Education, Greater Humanity and Greater Naira will lead to Greater Nigeria. I am Olatorera Majekodunmi-Oniru.
