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Dear Africa interested individuals,

Business people around the world are shouting themselves hoarse for Nigeria to further devalue its currency. Yes, it was devalued formally in February 2015 to 200 naira from 160 naira to the dollar four - five months prior. This is a 25% devaluation.

The IMF and foreign investors want more. The logic is that this will boost revenue oil receipts in local currency terms and help the country to generate more revenue from lower oil prices.

This will also enable foreign investors to bring in $1 million and get 300 million naira instead of 199 million naira presently. Naira supply will flood the system, further spike inflation and send the naira on a further downward spiral post devaluation. The naira lost a further 10% after the CBN Governor at the time (Soludo) devalued the currency in one fell swoop in December 2008 by 25% from N120 to the $.

The failure of the government's policy to peg the naira at approximately 200 is due to the failure of checks and balances by various structures within the system necessary to support this policy.

The banks in Nigeria exchange dollars received at the official pegged rate and pay out dollars (debit the naira account of their customers) at the unofficial rate of 320 naira!

Businesses: Samsumg has priced its S7 Edge at the unofficial black market rate in naira. Nobody is saying anything. Airlines are doing the same thing. These same businesses will now remember there is an official rate when they decide to repatriate their proceeds.

Moneygram and Western Union do not use the official rate when someone in Nigeria wants to remit naira out and receive $ in New York. Their rate is at least 30% higher than the official rate. This rate is nowhere to be found when you walk into to receive naira based on $ sent from the USA. The official rate suddenly exist once again.

All these entities and a lot more have contributed in no small measure to sabotage the government's efforts to stabilize the naira at 200 after a 25% devaluation. When policies or laws are implemented, they can only succeed if those closest to the people support it through obedience.

People are not allowed to buy alcohol in stores if they are less than 21 years old. This is government policy. It is the liquor stores and supermarkets through their check out counters that enforce this. If these stores all come together and decide to not check identification, the law will be null and void without being voided.

Yes, the effect of the naira trading unofficially at 320 instead of 200 is being felt because of the failure to adhere by the above. There is pretty much a gang up to devalue the currency unofficially so that the official devaluation can now take place with ease as its ill effects have already been factored into the economy. This is simply put a manipulation of the currency system to force through an official devaluation by those entrusted to enforce it on behalf of the government.

Norway's largest export is CRUDE OIL and over the past two years, the Norwegian Krone has depreciated by 35% approximately to the $. Norway's foreign exchange reserves are approximately double that of Nigeria at about $57 billion. Nigeria's currency has depreciated by 25% and people with vested interests are gunning for another 50% - 60%.

The question I ask all of you: Sincerely, who does the naira further devaluation really benefit? The Nigerian people or those not from Nigeria but, who like to do business with and make money from Nigeria while flying in and flying out? Trust me, the naira devaluation favors businesses in the short-run a lot more than the benefit to the Nigerian economy in the long-run.

The Central Bank of Nigeria has failed the people of Nigeria by allowing those entrusted with the responsibility of executing transactions at the official to not do so and get away with it. In terms of boosting non-oil exports, the Central Bank needs to exchange non-oil exports at the unofficial rate so as to boost the incentive for farmers to expand their operations.

When agricultural production and exports pick up, then, Nigeria can devalue further and let the farmers reap more from increased exports. Unless Nigeria wants to continue going through this cycle every 5 - 10 years of devaluing its currency and becoming more financially dependent on foreign powers, the knee-jerk reaction of devaluation during commodity price slumps has to stop.

Kenya and Ivory Coats are classified as a bright spot in Africa now; its major exports are soft commodities. Senegal and Morocco have also been mentioned and neither are largely dependent on hard commodities as their number one foreign exchange earner.

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