The strength of Nigerian Naira comes from warehouses and factories, and not from the Central Bank of Nigeria (CBN) headquarters. Those warehouses and factories include the old (the traditional firms like Innoson Motors, Dangote Cement) and the modern ones (like Paystack, Tomato Jos). Until the CBN can use its monetary tools to elevate them, it cannot win the fight for Naira.
As this election season begins, if you want to strengthen the Naira, vote for visionaries who understand the multifaceted global economic system, with defined roles on where Nigeria can play.
Anyone who tells you that he will make N1 = $1, via fiat, is a liar by default; only the factories have the real powers to determine those. So, the question is really: who can help us create better factories, the old and the modern?
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More like the conversation I was having this afternoon with Yomi, on what it really means when a politician promises to fix Nigeria.
We do a lot of buying and selling but still don’t understand international trade, so at every turn, we are looking for who to blame when things seem to go from bad to worse. Any politician can promise road or railway construction and deliver on it, but that does not mean the economy will improve or naira strengthened, to do the latter requires much more than concensus and zoning politics that is currently dominating conversation.
Who has answered the question on why neither high nor low oil price is favourable to Nigeria? You cannot lose both ways, yet in Nigeria’s case, we tend to lose in all areas. With the Russia-Ukraine war and all the threats on energy supplies, where is Nigeria profiting or cementing her global relevance? We don’t have known capability on anything, but everyone is picking nomination form, declaring for the biggest office in the land.
The land borders that were closed for over two years, any documentation on gains and losses, who’s amplifying the gains and mitigating losses? We have no idea. Then the CBN’s ban on crypto, the gains and losses?
But politicians are talking…