One Lagos Fiesta

One Lagos Fiesta

Tuesday, 4 October 2016

Exchange Rate

Some people need to understand that the dynamics of the exchange rate is not necessarily a factor of now now policy pronouncements. At least not in the case of Nigeria. Our economy has gone beyond that of quick fix policies. It's a surgical or holistic cocktail of actions that can BEGIN to give our Naira the needed boost. There are several things working against the exchange rate differences. From people who have access to special rates, to importers who ask for the dollars under the guise of trade, collect the money sell to people who don't have access to the foreign exchange, pocket the difference and wait for the next allocation, round tripping amongst banks, election underground funding and contract kickbacks, cost of electricity, corrupt government officials, patronage of foreign products, because agencies that are supposed to uphold high standards are ineffective, compromised customs point of entry, absence of upgraded tourists destinations to attract foreign exchange, failure to reinvest revenues earned from oil and gas in sustainable sectors or the funds diverted from projects that would have benefited all, the collapse of the education sector and technological advancement, industrial sectors that are totally dependent on raw materials that SHOULD HAVE BEEN SOURCED IN NIGERIA, but are now all imported, dependence on products that CAN BE assembled here, even when they are not manufactured in Nigeria, high cost of governance, agric sector that has been neglected because of oil revenues, weak laws, corrupt judges, lawmakers who are feeding fat while the citizens bear the brunt of bad economy... So when, some start shouting GOVT this, GOVT that, it's obvious they are expecting quick fix... its been a long time coming!

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