By Samuel George
Under the present administration 4.8 million Nigerians lost their jobs, prices of commodities soared and the Naira has trembled to over N420 to the dollar.
Many factors are to be blamed for the recent collapse of the economy; dipping oil prices, 2016 budget delay, CBN monetary policy, and of course Buhari’s lack of knowledge on economics.
CBN I creating the current monetary policy were so focused on tighting the supply of foreign currency that it sent the Naira to a free fall.
Prof. Akpan Ekpo specking on this policy said
“Rather than implementing qualitative easing, the CBN was interested in tighten monetary policy”
He also added;
“The oil source of foreign exchange for the economy is crude oil export, hence unrealistic assumption under a competitive market.”
The correct value of a commodity cannot be determined when it is in short supply. The FG took the Naira and converted it into monopoly money when it decided to subsidize the currency. Emir Sanusi in a recent statement said;
“I sit in my garden and make a few calls and get $10 million at N197 per dollar and sell at N300 to the dollar, I will make a profit of N1.03B… You don’t need to be an economist to know that any system that allows you sit in your garden and with a telephone call make N1B without investing a kobo is wrong”.
To get out of this recession government need to learn from countries like Ethiopia Ghana, and South Africa.
Talking about late Ethiopia Prime minister, Meles Zenawi the Emir said;
“So he tells Dangote, come and build a cement manufacturing plant here. I’m going to give you electricity at 3 cent per kilowatt. For a cement manufacturer that is all the incentive he needed”.
The FG needs to put in place policies that will attract investors not drive them away. Why do pilgrims get the dollar at N197 and an investor doesn’t? Why will someone sit in his garden and get the dollar at N197 and an investor be looking for the dollar at N300?