Nigerians speak: Naira devaluation

Fallout of Nigeria’s overdependence on oil as major source of revenue”

Devaluation unnecessary

Devaluation of currency is useless except the economy is a net export economy. Nigeria runs a largely import-based economy and majorly exports many items that we don’t need. For devaluation to work for us, we must first encourage the manufacturing arm of our economy and also take advantage of technology.

—Ugochukwu Chikezie

Mark of poor leadership

Although the devaluation of the naira may be termed to have short and long-term benefits to the country, it’s a big shame to Nigeria that our currency continues to devalue consistently. Our leaders should recall the days when the naira was stronger globally than the dollar, and compare the economy of Nigeria in the past and now. What a shame.

—Bayo Babalola

Overdependence on oil

The genesis of this development is Nigeria’s overdependence on oil as her major source of revenue, as well as the decline of the demand of crude oil, especially from the US, which many experts had warned Nigeria against. If the devaluation of the currency would save the economy, so be it, although this should be a clarion call to the Federal Government on the need to develop other sectors of the economy.

—Babajide Idowu

Evidence of failed GDP

It totally reflects that the country’s Gross Domestic Product rise as stated earlier this year was a false calculation. We were all jubilant that Nigeria was ahead of South Africa by the pronouncement. The fall of the naira against the dollar also suggests that the economic and statistical basis of our GDP rating was a mirage.

—Godwin Udoezi

Rise in inflation

A weaker naira will only increase inflation. A weaker exchange rate will instigate higher production cost across board, and many importers of goods would sadly suffer this fate, which would have disastrous consequences for employment and national growth. Thus, further naira devaluation will only deepen poverty nationwide.

—Chris Momoh

Hike in prices

The devaluation of the naira will lead to inflation and the fall of our Gross Domestic Product. In a country where there is so much dependence on imported products, the prices of goods are expected to rise. What then is the fate of the common Nigerian that lives below one dollar a day?

—Damilola Osinuga

Real sector failure

The fall of the naira shows that our manufacturing sector has failed. The Federal Government needs to invest more into the development of the country’s manufacturing sector. This is the bedrock of any country’s development.

—Barnabas Esinulo

Good move

I do not have any problem with the official devaluation of the naira as long as this would induce long-term stability of the naira.

—Adeyemi Michael

Corruption

It is just a wakeup call to the Federal Government that our currency, values and norms are falling. We need to embrace the search for solutions and tackle corruption in the country’s system fast.

— David Nwosu

Good for local manufacturers

There are two ways to go about analysing this development: Locally made products would become cheaper and imported products would become more expensive. This would encourage local manufacturers but, unfortunately, our country is more import-dependent and this would lead to a high level of inflation.

—Funmi Adetunji

Bad for Nigeria

The devaluation of naira from N155 to N181 per dollar is an insult to Nigeria. Why can’t the naira appreciate to the dollar instead? This does not portend well for the economy of the country that is supposed to be the giant of Africa.

—Ayomide Olanrewaju

Result of oil price fall

It is most unfortunate for Nigeria that the value of the Naira keeps declining. I think this may be as a result of the current fall in oil prices.

—Arthur Ophiohonren

Naira loses value

It is sad that our currency keeps losing its value. I remember when a dollar was the equivalent of five naira and things were cheaper. It’s a pity that the people in government don’t think about policies that would benefit the common man.

—Femi Mafe

Welcome development

The devaluation of the naira to the dollar is a good thing, because it would lead to an increase in the lending rate from commercial banks to businesses. The Nigerian economy can also stand to gain from a further tightening of monetary policy stance to anchor inflation expectations.

—Emmanuel Olisa