By Comr Fred Doc Nwaozor
The last time I checked, the Nigerian currency, the Naira suffered
a seemingly unpredicted rape though the identity of the rapist in question was
significantly unknown. This critique was informed by the compelling need for
every Nigerian to comprehend fully the overall nomenclature of the masked
rapist.
The worth of the naira per US dollar almost peaked at N400 in the
parallel market within the week as against its official exchange of N198.
Though it isn’t only Nigeria that is confronting the US dollar that is presently
ravaging her once respected currency, naira and local economy – some other
countries are obviously passing through similar fate, but it’s pertinent to acknowledge
that the ongoing misfortune of the said currency didn’t abruptly emerge;
suffice it to say that the above mentioned ‘rape’ was apparently a foreseen
circumstance.
Going down memory lane, it would be recalled that from 1972 to 1985,
the official worth of the naira per US dollar was between N0.66 and N0.89
involving a consistent slight fall and rise. From 1986 to 1992, it was worth
between N2.02 and N9.91 involving a steady fall. Subsequently, from 1993 to
1999, its worth was between N17.30 and N21.89 involving an onward apparent
constant exchange rate after an initial decrease. Similarly, from 2000 to
2009, it was between N85.98 and N145, which involved an outrageous continuous
fall. Suffice to say that this was during the President Obasanjo-led
administration.
Then, recently from 2010 to 2015, we witnessed a steady fall from
N150 to N171. And presently, barely from last year till date, it has declined
to N198 per US dollar, witnessing a free fall. The bone of contention is that ab initio, excluding the initial point
when it was ostensibly steady, there has been a continuous fall of the value
of the naira when compared to the US dollar.
Hence, having painstakingly perused the above comprehensive chart,
I have succeeded in disabusing our minds of the notion that the fall of the exchange
rate of the naira either at the official market or parallel market commenced
only recently. Needless to say that naira had suffered an untold hardship from
the genesis till this moment.
But if you take a closer glance at the above analysis, you would
observe that it is during the democratic era that the naira’s value fell
outrageously, although the origin of its downward depreciation could be
traceable to 1986 or thereabouts. In view of this assertion, one may be challenged
to ascertain the reason for such anomaly.
The answer is simple. Any democratic leadership, compared to
military regime, is usually synonymous with loose principles or policies. This
implies that the former often ends up overlooking the invariable lackadaisical
attitudes of its citizenry which is definitely not a wholesome practice in any
society that intends to grow economically. Most times, sustaining a certain
policy requires a non-human face.
Looking beyond the history, currently, it’s obvious that the value
of the nation’s currency is diminishing on a daily basis as if it’s being
relentlessly and endlessly pursued by a hidden monster. The ongoing
phenomenon, unarguably, is categorically not unconnected to the recent stiff
measures taken by the nation’s apex bank – the Central Bank of Nigeria (CBN).
It’s no longer news that only last year, foreign exchange for
importation of various commodities into the country was banned by the said
bank. This severe approach warranted people, particularly importers, to divert
their attention to only the various illicit Bureaux De Change (BDCs) situated across the nation. Consequently,
the CBN ordered the closure of all the existing branches of the BDCs in Nigeria ,
and thereafter stated that it could not continue selling foreign currencies
directly to them (the BDCs).
Owing to the above sanctions, the various seekers of foreign exchange
have shifted their entire attention to the parallel market thereby causing an
alarming increase of the demand for forex at the market. This is no doubt the
sole reason a US dollar is being unofficially sold at almost N400. But thank
God Dr Ifeanyi Ubah intervened and the Naira is now about N250 to a dollar.
However, the question remains: Who raped Naira? Unequivocally,
naira was dastardly raped by some unscrupulous elements in Nigeria as a
result of their selfish interests. This signifies that the present pitiable
physiognomy of naira was occasioned by the fact that she was gang-raped. One of
the rapists is the inability of Nigeria to export, at least, a
finished product to other nations, not even the oil and gas which are in abundance
in the country. How can a country be importing a product that is being
generated from its land? Doesn’t it sound ridiculous? Undoubtedly, the relative
steady rate of the foreign exchange in Nigeria
during the early years such as between `72 and `85 or thereabouts might not be
unconnected to the obvious fact that Nigerian refineries – in Port Harcourt , Warri and Kaduna – were functional during the said
era.
It doesn’t end at the fact that we are importing virtually everything
including toothpick; our education and health sectors are also fundamental
plights to our forex. It’s obvious that due to inadequacy in spite of the
uncountable number of tertiary institutions situated across the federation,
millions of our children are currently studying abroad even in such educationally
less-privileged countries as Kenya and Niger Republic, thereby warranting the
export of billions of naira on a daily basis. Same nauseous practice is
applicable to the health sector; none of our prominent citizens receives
medical treatment in Nigeria ,
especially in issues relating to surgery. Every pregnant Nigerian woman wishes
to deliver her baby in the US .
Inter alia, the country’s science sector that was relatively alive
and viable has abruptly become soured. All the country’s technical colleges
are currently moribund thereby posing a deterrent to our teeming young ones
in terms of production of scientific gadgets contrary to what was formerly
witnessed among them. In the same vein, none of the government-owned
industries is functional at the moment. Frankly, everything has completely gone
wrong, thus requires a total turnaround.
The demand for foreign currencies, dollar in particular, which
remains a global commercial currency, is presently astronomically high in
Nigeria for the fact that virtually, nothing is seemingly happening in the
country. Nigerians want to get everything done outside Nigeria or by
foreigners. Almost every contract is being awarded to foreign firms as if ours
aren’t equal to the tasks. An average Nigerian would prefer embarking on a
trip to England
for a football match between Chelsea FC and Manchester United FC to travelling
to Owerri for a match between Heartland FC and Enyimba FC. A two-day relaxation
period or a honeymoon would be spent abroad as if our hotels are mere hatches.
In a nutshell, we are currently enjoying foreign services in all our
day-to-day activities. This is why the country is being hit by soaring inflation.
Without mincing words, our past leaders assisted in raping naira because they
had the immunity to address all these anomalies but they never cared.
To restore normalcy, first we need to start by believing in ourselves
which would enable us to at all times encourage our locally made products as
well as our indigenous services. In other words, the ban on forex against most
goods and services ought to be strengthened headlong; this implies that our
various borders need to be holistically checkmated at all cost. In the same
spirit, the ban needs to be extended to other activities to include travelling
abroad for trivial issues. Similarly, all the illicit forex dealers must be
captured and thereafter brought to book without much ado; the saboteurs don’t
deserve any mercy. Hence, the Money Laundering Bill that was recently sent to
the National Assembly by the Presidency must be considered seriously.
Most importantly, we must revive most of our essential sectors such
as the aforementioned ones. In addition, the power sector ought not to be left
out; it’s imperative to note that several countries not unlike the USA that
can’t invariably boast of up to 15 degree Celsius are currently sourcing their
electricity from the solar energy let alone a country like ours that constantly
boasts of 40 degree Celsius that lasts for a long period of time. Indeed, this
proposed measure is meant to be handled with an utmost political will.
Surely, devaluing naira as being agitated in some quarters isn’t
the required avenue towards bringing to book the group of monstrous rapists
that are on the run. Hence, we needn’t a soothsayer to notify us that we’re
expected to drastically do the needful to return the naira to her initial
resplendent countenance that has suffered a colossal rape. Think about it.
*Nwaozor, a Public Affairs analyst wrote in
from Owerri.
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