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Redeeming the power of the Naira – by Ephraim Elombah

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The purchasing power of Naira is falling in comparison to the currency of other nations. As a result Nigerians cannot buy things at a constant rate

The purchasing power of the Naira is falling in comparison to the currency of other nations. As a result Nigerians cannot buy things at a constant rate. 

It is obvious that the country lacks sufficient foreign investment. 

If Nigeria attracts sufficient foreign currencies and trade surplus, the economy will be buoyant. This will stabilise the power of the Naira.

NAIRA EXCHANGE RATE vs AFRICAN COUNTRIES:

South Africa: Rand 1 = 13 Naira

Angola: 1 kwanza = 2 Naira

Botswana: 1 Pula = 18 Naira

Cape Verde: 1 Escudo = 2 Naira

Algeria: 1 Dinar = 2 Naira

Egypt: 1 Pound = 25 Naira

Eritrea: 1 Nakata = 13 Naira

Ethiopia: 1 Birr = 9 Naira

Ghana: 1 Cedi = 50 Naira

Gambia 1 Dalasi = 5 Naira

Kenya: 1 shilling = 3 Naira

Liberia: 1 Dinar = 4 Naira

Lesotho: 1 Loti = 14 Naira

Libya: 1 Dinar = 146 Naira

Morrocco: 1 Dirham = 146 Naira

Madagascar: 1 Ariary = 4 Naira

Mauritius: 1 Rupee = 6 Naira

Malawi: 1 kwacha = 11 Naira

Mozambique: 1 Metical = 4 Naira

Namibia: 1 Dollar = 12 Naira

Seychelles: 1 Rupee = 12 Naira

Sudan: 1 pound = 32 Naira

Swaziland: 1 Lilangeri = 13 Naira

Tunisia: 1 Dinar = 100 Naira

Zambia: 1 kwacha = 18 Naira

Even the worst economies of Africa now have more valuable currencies than Naira.

As at today $1 = N425; 8 months ago it was N200; N1,000,000 is less than $2,300

Nigeria has a lot of potentials for attracting foreign investors. 

Many of the nation’s parastatals are wholly owned by the government. Some of these areas can be made open for foreigners to invest in. 

The government can allow foreigners to take part in the oil and gas sector. The refineries are still owned and operated by the government. 

A part of this venture can be sold to attract foreign currency.

This can also be applied to the power sector. The government is in charge of generation and transmission of power. 

The government is rich in this area, with the network of poles and electric cables scattered through the length and breadth of the country. 

Nigeria is not yet enjoying uninterrupted power supply. The government has done much work in this area and is still trying. 

Some of this can be made open to foreign investors to ease government load and attract foreign currency.

This does not mean that all these measures will be entered into at once. It needs strategy and planning. 

There are many areas the government can enter into joint ventures with foreign partners. 

Foreigners can share in building the infra-structures necessary. This will attract foreign investment and a free flow of foreign currency. 

There will also be balance of trade. Foreigners will get to know of local produce. 

When they buy these locally produced materials, foreign currency will be generated. This will act to stabilise the Naira exchange rate.

Nigerians can be encouraged to produce some of the things imported from overseas countries. Common household goods should be produced by Nigerians. 

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