>On Sat, Jul 18, 2015 1:40 AM PDT Opesanmi Kehinde wrote:
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>Without politicising this let me start by saying one of the things I read and I was told is that president Buhari promised to make naira equal to dollar during his presidential campaign.
>But with the current economic situation which this government found itself,it seems it will be impossible to achieve this promise. Notwithstanding,I can tell this government that this same economic problem also bring about opportunity to find permanent solution to oil crisis in Nigeria and revitalise our economy for better. What the government needs is political will to implement what I will suggest below.
>Buhari's administration should know that for the problem of Nigeria's oil subsidy that is taking too much from government purse for the few at the expense of vast majority to be solved without creating social crisis, his government will have to simultaneously remove subsidy completely and revalue naira by around #80 or #50 to one US dollar as a first step. What will happen by this is that,since the total amount of fund that is required to import refined oil into the country at a particular period of time can be almost accurately determined. This says it is the same dollar quantities that the importers of refined oil will still be required without oil subsidy anymore,only that at lower naira exchange rate which will also help to reduce inflation. This will also help to put end to the diversification of our subsidised refined oil to neighbouring countries which has been at a great cost to our nation.
>Moreover,this action will encourage those that want to invest into the establishment of refineries. Federal government can also use this opportunity to fix the existing refineries for partial privatisation and even builds new ones for selling out. State governments can also come in into this.
>More so,this revaluation of naira action will in turn help the other productive sectors of our economy that need foreign exchange to purchase their essential needs from abroad especially now that some importers of some imported products have been banned from getting our scarce foreign exchange from CBN. Government should know that it can't be stopping some unessential products and at the same time be handicapping those to produce them locally that is what this continuous devaluation of naira means. It is better we add to the means of discouraging importation of non-essential goods in another way rather than using devaluation.
The resultant inflation which devaluation usually brings has been the cause of high cost of production which has been creeping the majority of Nigeria investors' ability to produce up to international standard products. The few that manage to produce near the international standard among them could not get good patronage for their products even the majority of people importing could only afford to import discarded and fake products in order to get economic patronage of standard of living that devaluation has devalue the lives of the vast majority of our people to in the midst of plenty!Or what is the true value of the minimum wages in Nigeria today?This shows the hypocrisy of nations that ask us to use devaluation for the discouragement of devaluation who also be the ones to be complaining that we are not cooperating with free trade they propounded if we use another method of discouraging importation.The two foreign exchange market we introduce into our
economy is the confusion brought to us by the devaluation's deception.
>To be candid,apart from the fall in the price of oil in the international market recently which a serious diversification of economy can adjust instead of using devaluation which has never been done us good since the days of austerity measure and structural adjustment programme. What corruption also does to the reduction in our foreign exchange purse is enormous which government should be sincere in its effort at checking it rather than using devaluation to impoverish the people more. Today, Nigeria is far behind of some nations that are not resourcefully blessed as us e.g China,Singapore,Malaysia,Japan,Dubai etc. But because of our myopic thinking Nigeria's potentials are just being allowed to be wasting away.
> Finally,I will say the consideration of these above suggestion for adoption by government will go a long way to help us to reinvigorate our economy as a true giant of Africa;provide mass employment opportunity for the army of our unemployed able bodies,turn our brain-drain to brain-gain that can help the advancement of our technology and economy,turn our economy to productive economy rather than consuming economy for the better utilisation of our blessed abundant resources. Even,the issue of our insecurity will be reduced to the barest minimum because it is a better society that can make for a safer community.
>God help Nigeria
>God bless Nigeria more
>By: Opesanmi Kehinde
>09053085506,08062866140
>watch out for my write up on effective way of finding solution to problem of electricity in Nigeria. Thank you.
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Nice