Fresh Perspective On The Naira by president of market southeast

Nigeria has been facing a lot of economic problems in the recent years. Governance issues, lack of policy directions on the part of government, corruption, over reliance in crude oil, lack of economic diversification, spate of violence among the constituent units and issues of insecurity and greed are the major causes of the Nigeria’s economic problems.

The Way Forward

Strong law against corrupt practices is imminent, vibrant market economies that will result in the emergence of classes of industrial workers, diversification, unity and national economic summit to discuss some gray issues affecting the naira.
Moreover, Federal Government of Nigeria should come up with definite economic policy direction, to engage in more efficient restriction and controlling of foreign exchange outflow, undertake revival of the country’s productive capacity and broaden government revenue base. The federal government should as a matter of urgency concentrate on economic programmes that will continue to arrest the decline of the naira, restore investors’ confidence.

To chart a future course for economic stability and economic growth, government should engage the services of renowned technocrats in any economic team and continue to demonstrate exemplary leadership in principles and practice in issue of national interest.

B. Causes Of Economic Problems In Nigeria

1. Over dependence on crude oil as a major source of revenue for the government.
2. The level of corruption and greed among some Nigerians. Corruption has eaten deep into the nation’s fabric. And, corruption has seriously been enculturated into our system.
3. In the banking sector, insider abuses, non – adherence to corporate governance code and other related corrupt practices have been the bane to national development.
4. Spate of violence in the country and issues relating to insecurity. This issue present another unique economic challenges in the country. Today, there are lots of politically motivated and terrorism violent activities. All these together threaten the peace and unity of the country and economic activities.
5. Lack of economic policy directions, untimely implementation of the nation’s budget are part of the next cause of economic decline which is lack of robust economic policy directions on the part of government. So, absence of robust economic policy would halt economic activities, scare investors, affect the Gross Domestic Product, interest rate, Balance of Trade and Balance of Payment among others. In Nigeria for instance, at the moment, I’m not aware of the policy direction of government other than fighting corruption, and you see some of these things work hand in hand. You can’t do one and leave the others. Take for example, the huge amount of money that the administration has realized from corrupt related issues would have been enough to stabilize the economy, but, it did not, because there are other issues that were not taken care of. Formidable economic policy remains the bedrock for national economic development.

C. The Way Out

1. To diversify the economy and make agricultural practice the main stay of the economy as is use to be. We are not suppose in any way to be a poor country in terms of per capita income and so on. We have to change the status quo and embrace progressive agriculture that is income generating.
2. Nigeria should also lift the ban on the importation of some essential commodities. There is nothing too bad in importing what we don’t have. In international trade context for instance, countries depend on each other to grow. So, achieving economic stability should follow a gradual process and not a one day affair.
3. On corrupt practices and greed among some stakeholders, we should note that corruption and violence go hand in hand. In other to fight corruption, nations must build up a zero tolerance for corruption, strengthen rule of law and offer no impunity to corruption, no matter who is involved.
4. The federal government should come up with a formidable economic policy that would:
   a. Arrest the continuous decline in the economy of the nation to forestall the present hardship been experienced in the country.

b. Engage in more restricting and controlling of foreign exchange.

c. Undertake the revival of the country’s productive capacity, like to encourage manufacturing sectors, adequate funding of the education sector and so on.

d. To widen government revenue potential.

e. Nigerians should look beyond ethnicity to move the economy forward. Unity and peace should be our watch ward at all times. This is because economic prosperity triumph more in peaceful environments.

f. In the issue of the crude oil price problems in Nigeria, federal government should adjust macroeconomic variables to ensure stability.

g. To try and solve the problem locally, the federal government should also look towards refining locally and becoming the central supplier of refined products to West African Countries.

h. Nigeria should also use this opportunity to look at opportunities in other sectors of the economy and give them equal attentions as done to the oil and gas and develop them. To diversify the economy means seeing more opportunities and generate more revenue which would invariably shoot the Gross National Product and Per Capita Income.

Thank you!