Saturday, 27 February 2016

Nigerian economy and exchange rate issue

Nigerian economy and exchange rate palaverWith the sudden crash in the price of crude oil, it is obvious that a mono-economy country like Nigeria that has over-depended on crude oil as the major source of revenue for years is in for economic quagmire.
Since the crash occurred, government’s revenues have dwindled drastically, and the economy has nosedived.
As the Muhammad Buhari-led government battles with the myriad of challenges it inherited, which includes the poor state of the economy, the situation has continued to deteriorate with scarcity, rising, and fluctuating price of the exchange rate. A situation, which has brought about the rapid depreciation of Naira and the rising cost of living in the country.

Across the country, today, the price of goods and services have soared. People have lost and are still losing jobs. Companies are struggling to stay afloat in the face of obvious economic and financial challenges.
While the government has pleaded for patience and the need for Nigerians to look inward and patronise locally made goods to reduce pressure on the Naira, Nigerians have expressed reservations of government’s preparedness and ability to quickly find a lasting solution to the dwindling economic situation.

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