The Sinking Naira

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Could it be that we are in a season of results? Decisions springs forth results. It is a known law of nature. Concerning Nigeria, it is as though we are a lost ship in the middle of nowhere drifting to nothingness. Insecurity, global warming, poverty, unemployment, ridiculous leadership style…have become our kinsmen.

I am particularly distraught by the fall of the naira value against the dollar. However, I am not shocked. This is because decisions births results. The naira didn’t fall on it own accord rather it was due to series of gross maladministration. Unfortunately, the Nigeria code of conduct is known as fattened corruption which is evident in all sectors of the nation.

Last night, an anonymous fellow said that we shouldn’t feel unconcerned about closure of schools in the north simply because ours are able to without fear of bandits or terrorist. He concluded that on the long run, the disadvantaged will turn out to be a problem for all. By the way, poverty and lack of proper education creates a fertile soil to sow seeds of terrorism. Perhaps, Nigeria’s freedom will only arrive once we learn to play politics without religious, party or ethnical  affiliations.

Back to the falling naira. The many ceaseless borrowing undertaken by this administration is indeed unhealthy. The structural Adjustment Program of 1986 gave the naira it first major blow. Ever since, the naira has become a sick lad leaving the dollar hail and hearty. Same Economic SAP also sapped the energy of the Zimbabwean currency during the late 90’s. By the year 2015, the Zimbabwean dollar was the most useless currency to possess. In my jargons of thought, I fear that the naira may sink further to nothingness.

Remembered I said decisions birth results? well, Prior to now, there’s been a number of decisions that have over time given birth to a dwindling naira value. Some of them include; corruption, poor fiscal and monetary policy, black market economy, disadvantageous borrowing, global politics, crisis and what have you. The summation of these many factors can never birth to progress but regression. Little wonder why we are where we are.

An administration bent on borrowing to finance recurrent expenditure does her nation no good at all. This is because when the chips are down, the lender will fight hard and he is she does so via whatever instrument. What more? Insecurity saliently hinders industrialization. Since this is the case, exportation becomes nearly impossible.

When import exceeds export, there is deficit balance of trade. To provide a quick fix, our leaders resort to organizations such as; Paris Club, World Bank or elsewhere for economic salvaging. Usually, the lender is no fool and so demand a collateral in return such as a possible devaluation. Successive administration have been known to renege on agreement leaving the lender to do as they please. Now you see why the naira is so sick.

To cure the naira, the government and the good people of Nigeria must look inward and provide a unique solution void of global politics. Even so, a proactive decision must be made to combat symptom of devaluation. By that, I mean; stop borrowing for foolish sakes, combat insecurities, corruption and all other ills.

– Olayinka Kayode Kingsley

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