The Naira remains Nigeria’s foremost currency and is a legal tender duly approved by Government for use by citizens to transact official and private driven businesses in the country.
Naira by all standards is supposed to be the first and most recognized currency in Nigeria. Over the years, the dollar that equally gains the approval to be in circulation considering Nigeria’s global connection has gradually taken preeminence over the Naira.
What is now common, is the dollarisation of the economy by individuals and even governments at all levels. The situation is such that official including private transactions is done with dollars.
The unfortunate scenario has not only devalued the naira but also crippled the economy and since Nigeria is more of an import-dependent Nation, the current scarcity of the dollar has led to a hike in the prices of goods and services.
It is instructive to note that at the official exchange rate, the dollar is between Four Hundred and Fifteen to Four Hundred and Fifty Naira while at the parallel market, it is within the range of Six Hundred and Fifty to seven Hundred Naira.
Unfortunately, even at the current high exchange rates, the dollar has remained a very scarce commodity to a level that has continued to affect so many sectors in the Country. It is not a hidden fact that Nigeria imports refined petroleum products and with the exchange rate on the high side, these products are now very expensive.
For instance, Aviation fuel also known as Jet A 1 used by airlines, diesel and gas that propels the manufacturing, productive and domestic base of the economy now goes for between Eight Hundred to One Thousand Naira per litre with premium motor spirit equally known as petrol now selling within the range of One Hundred and Eighty-Five to Two Hundred and Fifty Naira.
No doubt, the huge amount of money used to procure these petroleum products has been reflected in the prices of goods and services as citizens are groaning under the heavy weight of the cost of living or doing business.
Regrettably, also, those who have secured admissions abroad are going through hard times securing dollars to pay their tuition fees as the majority may end up losing the admission.
In addition, the prevailing situation coupled with insecurity in parts of the Country has hindered direct foreign investment with some businesses relocating to other Africa Nations.
For experts in the Financial and economic sectors, the current hardship and cost of doing business will continue to linger and even get worse if nothing is done urgently to reverse the situation.
They are of believing that managers of the Economy must take concrete steps to stop the importation of petroleum products which are transacted in dollars and either build new refineries or turn around the existing ones to place them in a manner that products will be refined in the country.
This is will enable Nigeria to save a humongous amount used in subsidizing petroleum products or for importation and at the same time spur the naira into regaining its value.
Importantly, there is the need for relevant agencies of government including the Central Bank of Nigeria CBN to reinvent the manufacturing, productive and agricultural sectors of the economy to make essential goods and services readily available.
Addressing insecurity must remain the priority of the Government as a secured environment will attract more investors who will stay in the country and transact businesses using the Naira.
When this is done, there will be no need for importation, rather the country should strive to package products that will be accepted internationally to ultimately breach dollar scarcity, increase foreign financial inflow and make it possible for the Naira to regain its pride of place.
Write Up/ Terfa Awuhe