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📈 Celebrating the Naira’s Strength: Benefits and Impact 🎉 It’s a moment of optimism and resilience as the Nigerian Naira strengthens against the US Dollar. This recent development not only reflects the inherent strength of our economy but also brings forth a myriad of benefits and impacts worth celebrating and understanding. 📌 Boost to Purchasing Power: A stronger Naira means increased purchasing power for Nigerian consumers. Imports become more affordable, contributing to a reduction in the cost of living and fostering greater consumer confidence. 📌 Stability and Confidence: A strengthening Naira signals stability in the financial markets and boosts investor confidence. It encourages foreign investment inflows, stimulates economic growth, and creates new opportunities for businesses to thrive. 📌 Inflation Management: A stable and strengthening currency can help in managing inflationary pressures. It provides a conducive environment for the Central Bank to implement monetary policies effectively, thus ensuring price stability and sustainable economic growth. 📌 Debt Servicing: For Nigeria, which has significant foreign debt obligations, a stronger Naira means lower debt-servicing costs. This frees up resources that can be channeled towards critical infrastructure development and social welfare programs. 📌 Export Competitiveness: While a strong currency may pose challenges for exporters, it also presents an opportunity for Nigerian businesses to enhance their competitiveness in the global market. It encourages diversification of exports and supports the growth of non-oil sectors. 📌 Foreign Reserves Accumulation: A strengthening Naira contributes to the accumulation of foreign reserves, bolstering the country’s capacity to withstand external shocks and maintain external stability. As we celebrate the Naira’s strength against the Dollar, let’s harness this momentum to drive sustainable economic growth, foster innovation, and build a resilient future for Nigeria. Together, we can leverage this positive trajectory to create prosperity and opportunity for all. #NairaStrength #EconomicGrowth #FinancialStability #NigeriaFinance 💪🇳🇬

The naira's depreciation despite Nigeria's rising external reserves highlights the complexity of the country's economic challenges. The increase in reserves suggests improved liquidity, but the naira's decline indicates deeper issues, such as inflation, monetary policy inefficiencies, and import dependence. Addressing these underlying factors is crucial to stabilizing the naira. #Nigeria #NairaDepreciation #NigeriaEconomy #ExternalReserves #MonetaryPolicy #InflationAndGrowth https://lnkd.in/e3b8NVC6

#Stabilizing the Naira and Fixing Investment Challenges in Nigeria* *Executive Summary* The Nigerian economy is facing significant challenges, particularly with regards to the volatility of the Naira exchange rate and its impact on investments. This paper argues that stabilizing the Naira is crucial to attracting investments and promoting economic growth. Three key points are proposed to achieve this within 24 hours. *Introduction* The current volatility of the Naira is a major deterrent to investments, causing confusion and uncertainty for investors. The government's ability to enforce measures to stabilize the currency is compromised by the prevalence of illegality and the government's compromised entity. *Point 1: Understanding the Impact of Naira Exchange Rate Volatility* - Naira exchange rate volatility is more injurious to the economy than the actual exchange rate - Volatility causes confusion and uncertainty for

Reading your suggestion sounds good but it would only drag us back to where we started from. Yes, we are in a more painful position at the moment.🎯 To subsidize fixed exchange rate again won’t do us much good. I believe we can get the manufacturers working again with new tailored arrangement that the HM, Finance and his team MUST propose and advise PBAT. Fixing exchange rate will only do us short-term good and still be a great problem for this country as time persist. Our Key Problem Data shows that we’re always taking a step back whenever the heat is turned on and hence no administration has been able to successfully make critical and painful decisions that will do us good in the long run for this country. A generation needs to stay hours in the sun/rain to plow the ground and plant the orange seedlings so that another generation can enjoy the shed the tree will provide in the future. WE ALL NEED TO PAINFULLY BUILD THIS COUNTRY. KEY QUESTION: What can we do to move forward from where we are? Professionals should desist from throwing jabs and start proposing solutions like Prof. Some of us here can reach PBAT and HM, Finance to share your proposed solutions.🎯🎯🎯 Cheers 🥂

It is abundantly evident, even to individuals without an extensive understanding of the intricacies of the economy, that the decision to float the Naira has not yielded the desired outcomes envisioned by policymakers.   Although it may have seemed promising in theory, the practical implementation of this policy has been detrimental to both the economy and the general population. While the intention behind the decision may have been noble, it is disappointing to acknowledge that it has failed to deliver the expected results. However, I believe there is still an opportunity to rectify this situation by considering a reversal of the policy.   The problem with Nigeria is that a small group of individuals is reaping the benefits of the ongoing depreciation of the Naira and will exert every effort to maintain the policy. If the primary goals of floating the Naira were to curb inflation and mitigate the escalating costs of goods and services, and these objectives have not been met, it is only appropriate to consider reversing the policy.   In Nigeria, prices of commodities hardly decrease, even when there are valid reasons for them to do so. I think that urgent action is required to prevent further depreciation of the Naira.   While I may not possess the expertise of an economist, it is evident this policy has failed. #economy #fx #naira

𝗡𝗮𝗶𝗿𝗮 𝘁𝗼 𝗗𝗼𝗹𝗹𝗮𝗿 𝗮𝘁 ₦𝟭,𝟳𝟬𝟬: 𝗔 𝗖𝗵𝗮𝗹𝗹𝗲𝗻𝗴𝗲, 𝗯𝘂𝘁 𝗔𝗹𝘀𝗼 𝗮𝗻 𝗢𝗽𝗽𝗼𝗿𝘁𝘂𝗻𝗶𝘁𝘆! 🇳🇬 At the parallel market, the naira depreciated to N1700/$ on Friday from the previous day's N1640/$. Hold on tight, folks! This is really hitting our wallets hard. This is a chance to build a stronger, more self-reliant Nigeria. Oil isn't king anymore. Sure, it's been our comfort zone, but over-reliance has left us vulnerable.  Time to diversify! Here's how: 1. Diversify, Diversify, Diversify! Let's invest in agriculture, tech, manufacturing - anything to reduce our dependence on oil. Let's tap into it and become self-sufficient in more areas. Let's invest in food production, technology, and other sectors that shine bright on our continent. 2. Strengthen our own currencies.✊ Let's prioritize local transactions and encourage cross-border trade in African currencies. 3. Local businesses are our heroes: Imagine a thriving community of small businesses thriving with government support. More jobs, more income, and a stronger local economy! Let's support them with effective government initiatives, access to finance, and training. Their success creates jobs, boosts local production, and reduces reliance on imports. 𝟰. 𝗕𝘂𝘆 𝗡𝗮𝗶𝗷𝗮, 𝗟𝗼𝘃𝗲 𝗡𝗮𝗶𝗷𝗮! 🇳🇬 The dollar might make imports expensive, but that's 𝐠𝐨𝐨𝐝 𝐧𝐞𝐰𝐬 𝐟𝐨𝐫 𝐦𝐚𝐝𝐞-𝐢𝐧-𝐍𝐢𝐠𝐞𝐫𝐢𝐚 𝐩𝐫𝐨𝐝𝐮𝐜𝐭𝐬! Let's 𝐬𝐮𝐩𝐩𝐨𝐫𝐭 𝐥𝐨𝐜𝐚𝐥 𝐛𝐮𝐬𝐢𝐧𝐞𝐬𝐬𝐞𝐬. We'll stimulate our economy and 𝐬𝐡𝐨𝐰𝐜𝐚𝐬𝐞 𝐭𝐡𝐞 𝐪𝐮𝐚𝐥𝐢𝐭𝐲 𝐨𝐟 𝐰𝐡𝐚𝐭 𝐰𝐞 𝐩𝐫𝐨𝐝𝐮𝐜𝐞. Yes, the situation is tough, but it's also an opportunity. Let's work together, innovate, and build a more resilient Nigeria. It's time to: Work together: Government, businesses, and individuals, all united in this mission. Think outside the box: New solutions, new possibilities. Let's innovate! This isn't just about surviving, it's about thriving. What can be done for the naira to Gain against the dollar? #diversificationnow #buynigerian #togetherwerise

This post highlights the real challenges of running an international (export) business in Nigeria. Fiscally, the country is in a mess. Raging inflation is hitting everyone hard, as are high energy costs and the banishing of prior fuel subsidies. However, plenty of comedians on this platform focus on the huge opportunity presented by Nigeria's 200+ million population, presenting a distorted picture of the challenges in realising those opportunities. I can recall when the Naira was in the range of 125 - 135 in 2005. Today, they are looking at 1500 Naira to a Dollar! Now imagine if you sold products at $1 landed costs in Nigeria in 2005 (= Naira 125), with a distributor applying a 25% margin on landed cost. The wholesaler price would be Naira 156.25. Today, if that was a $1 landed cost (= Naira 1500), the wholesaler price with a 25% margin by the distributor would be Naira 1875! Simply unaffordable to patients with a price of more than 1000% higher. Pay has not been kept in check with such inflation. Secondly, the Naira is non-convertible, so no distributor can make payment in USD, and the Naira cannot be taken outside Nigeria. 1. You cannot run a business if your distributor cannot pay you. 2. Your distributor will only order your products if his customers can afford to buy them. With such inflationary pressures, they cannot afford to buy your products. Both of these factors are outside your control. In my book, I highlight the importance of using both a quantitative and a qualitative analysis when choosing markets. I illustrate this using Nigeria as an example with other qualitative features that are worthy of consideration before entering a market such as Nigeria. There are other markets like Nigeria with worthless, non-convertible currencies—the Argentine Peso being an example. Next time anyone tries to sell you entry to emerging/distributor markets, be sure to challenge them on these qualitative issues and ask: "How will we get paid, and how will our products be affordable to patients?" Please don't wait for the answer. They won't have an answer. I know because I established a legal affiliate in Nigeria and changed the commercial model. I know how difficult it is to run a business in Nigeria anytime. Not just today.

Ndubuisi Ekekwe, your analysis touches on critical aspects of Nigeria's economic challenges. Here are some additional considerations: 1. Economic Diversification: Nigeria should diversify its economy beyond oil and gas. Investing in agriculture, technology, and manufacturing can reduce dependence on oil and create more stable economic growth. 2. Strengthening Institutions: Strong institutions are vital for enforcing economic policies effectively. Ensuring that institutions like the Central Bank operate independently and transparently can boost investor confidence and economic stability. 3. Infrastructure Development: Improving infrastructure, particularly in transportation and power, can enhance productivity and reduce costs for businesses. Public-private partnerships could be a way to fund these projects. 4. Educational and Skills Development: Investing in education and vocational training can create a skilled workforce that meets the demands of various industries, driving innovation and economic growth. 5. Promoting SMEs: Supporting small and medium-sized enterprises (SMEs) through access to finance, training, and market opportunities can stimulate economic activity and job creation. 6. Fiscal Responsibility: The government should ensure fiscal discipline, avoiding excessive borrowing, and focusing on sustainable development projects that offer long-term benefits. #godblessnigeria

Sadly, dollar to naira is over N1,400 in Nigeria. The solution to stop the systemic devaluation of Naira (so N5,000 will not be exchanged for $1 in 2030) is for those charged with governance to quickly do the following, 1. Stop smuggling and be intentional on killing corruption of all kinds in Nigeria 2. Increase production capacity of goods and services in the Nation 3. Make policies and create enabling environment for industrial, and consumers' goods as well as luxurious' goods and get their manufacturers to establish manufacturing plants in Nigeria. 4. Invest heavily in public infrastructure and social amenities 5. Bring down Interest Rate 6. Make policy that Nigerian must only buy made in Nigeria goods in Nigeria. 7. Create heavily juicy incentives for exportation of made in Nigeria goods and services. 8. When production increases so much and competition is high in consumers' goods sectors, inflation rate will nosedive. If above points can be achieved in Nigeria and run consecutively year on year for 5 years in the first instance, then N100 may exchange for $1 by December 2030. Dear Friends, please share this piece and send to those in government until something positive happens. Help save Nigerian economy! Prayers alone cannot do it or reverse the systemic devaluation trend of our Naira, positive policies, steps and actions in the right direction will be required to change the narrative. Good afternoon

Thanks for that thought Ndubuisi Ekekwe the question is Nigeria a socialist country or capitalist⁉️Because on 29th of may 2023 The president hit an economic ball to increase government revenue by removing fuel subsidies. And things will never remain the same as seen in the increase of inflation now at 34% Unemployment at over 40%. Electricity and energy prices of over 200% increase. 15 June 2023 the exchange rate was floated by this government. Infact cbn called it the floatation of exchange rate. The question now is how will a wasteful government compensate to avoid economy short down. when you look at the consistent increase in MPR by the apc government At 14%. Growth averaged from 2%-2.5% what happen to growth today it’s still less than 3%. But population growth rate is at 2.6%-3% today. Clearly Nigeria 🇳🇬 have not made progress in the last one year of this administration. Therefore Nigerians must insist on production and manufacturing to increase government performance and responsibility. Meanwhile the earliest Nigerians start holding government accountable nothing would change in good governance in nigeria 🇳🇬 and Africa as a whole. Hence TheChoice9ja is here to bridge that gap between the people and their government.