With the dollar rise to about NGN600 for a dollar in the black market, it looks like businesses are going to have to reshuffle their process and their procedures to suit the rising costs.
Businesses are either folding up or absorbing huge losses as it seems the nigeran economy would not be improving very soon. The naira depreciation has made it hard for a lot of people to do business in Nigeria, as the cost of business is high.
Believe me, this affects all businesses as Nigeria is heavily dependent on importation for most of our businesses and daily life.
Most industries today are affected by this as a lot of the materials used to either produce stuff here or render services in the country are imported. And with the devaluation of the Naira, the selling price for these goods or services might not be able to cover the cost of production.
Same with the petroleum industry. Nigeria does not refine their crude oil; we export them to countries and import the final product. This sector has also been hit hard by the Naira devaluation because currently, the price of crude oil in the global market has increased.
Even though the Government subsidize the cost of PMS for the citizens, the subsidized cost is still high for a country whose minimum wage does not reflect its economic conditions. So in this case not only are the importers affected, the users and Government are paying heavily for the devaluation.
Also, travellers or foreign students, have been greatly affected by the naira depreciation. Previously a foreign MBA costs about NGN5,550,000 which translated to $30,000 in 2015. But seeing as the price of dollars in Nigeria has more than tripled, students who which to further their studies abroad could spend as much as NGN18,000,000 for an MBA.
In fact, everyone is affected. This has eaten deep into the economy that even the simplest or cheapest things are now double or triple their normal price. Coupled with some retailers’ greed and urge to exploit others, Nigerians have really taken a big hit.
Currently, we are unsure of things getting a bit better or changing as there is no indication of that from the government. There has been no plans or process put in place by the Government that we are aware of.
It is sad really, that a nation strong and resilient, doesn’t speak well for us as a nation, who was once called the Giants of Africa, to be brought down to its knees.
I want to believe it is largely due to the calibre of people in charge of the sectors that affect foreign exchange.
I, therefore, implore the government to try to find a lasting solution to this very crucial issue. I believe there are a lot of strategies or processes that could be put in place to help the economy fester and grow, which would in turn strengthen our currency against its foreign counterparts.