As today, July 20, 2024 marks another birthday of business tycoon and politician, Ambassador Olufemi Ajadi Oguntoyinbo, he has used the occasion to sound an alarm on the consequences of Nigeria’s weakening currency , calling on the Federal Government to take decisive action to improve it.
He lamented the present economic situation in Nigeria, saying sadly Nigeria has lost its status as the Giant of Africa.
Speaking on the current exchange rate of African countries, Ambassador Ajadi who is on Africa tour stated that the exchange rate of Naira to Ghana Cedis and CFA currency of eight independent states in West Africa which make up the West African Economic and Monetary Union (UEMOA; Union Économique et Monétaire Ouest Africaine) makes Naira a shame and shambolic nature of Nigeria economy.
He said years ago, Nigeria was proudly touted as the Giant of Africa saying however, that Nigeria presently has lost that envious position as it can no longer be regarded as giant of Africa but a miniature.
As a member of the Manufacturers Association of Nigeria and being the gubernatorial candidate of the New Nigeria People’s Party (NNPP) in Ogun State in the last election, Ambassador Ajadi decried the low attitude of government to improve the nation’s economy .
Ambassador Ajadi, who brings a wealth of experience as the CEO of Bullion Go-Neat Global Limited, also expressed deep concern over the negative impacts of the dwindling value of the Naira on various sectors of the economy.
Labeling the situation a potential national embarrassment, he has urged the Federal Government to swiftly address the issue to alleviate the hardships faced by the citizens.
The parlous state of the Naira, according to Ambassador Ajadi, has led to a surge in prices of commodities, saying it is effectively eroding the purchasing power of the citizens.
“As prices soar, the Nigerian people find themselves grappling with increased financial strain. From an entrepreneurial standpoint, sustaining production becomes a formidable challenge, prompting manufacturers to pass on additional costs to consumers”, he said.
Ambassador Ajadi also emphasized the need for the Federal Government to focus on shoring up productive sectors of the economy, reducing dependence on extensive importation.
He contends that addressing the root causes of the exchange rate crisis requires a strategic and collaborative approach.
Basic infrastructure provision and the introduction of incentives for real sector operators are among his recommended measures to alleviate production costs and elevate income values, on which Naira’s stability is paramount.
The unpredictability and volatility of the exchange rate, as outlined by Ambassador Ajadi, pose significant obstacles to effective business planning and investment decisions within the industrial sector.
He points to challenges in sourcing raw materials by industrialists and maintaining production schedules, saying these difficulties lead to the fluctuating exchange rate and insufficient infrastructure.
Ambassador Ajadi’s call for economic planners to develop sustainable policies to stabilize the Naira rate and contain inflation is underscored by recent data reflecting a decline in industrial output during periods of intense currency fluctuations.
He stresses the importance of a well-defined and consistently applied exchange rate policy, urging collaboration between the Federal Government, economic experts, and industry leaders to foster economic stability, attract foreign investments, and revitalize Nigeria’s industrial sector.
Ambassador Ajadi said Nigeria’s economic system is the worse in West Africa as its Naira has becomes valueless among its counterparts.
He said Benin, Burkina Faso, Côte d’Ivoire, Guinea-Bissau, Mali, Niger, Senegal and Togo which are French-speaking countries have the same strong money called CFA and Ghana which is an English-speaking country, like Nigeria, also has a very valuable currency than Nigeria, called Cedi.
“I am very sad that Nigeria’s currency can no longer compare favourably with Ghana Cedis and West Africa Coast CFAs. That is the reality we are in now. Anybody still calling Nigeria the giant of Africa is economical with the truth. One Ghanaian Cedi now exchange for almost N106. CFAs too has dumped Naira behind.
“How did we get to this sorry state?. The government and business leaders in Nigeria as well as our academia must stand up now and let’s do whatever we need to do to improve our economy. We cannot continue like this. All hands must be on deck to rescue our economy”.
Ambassador Ajadi suggested a return to the agricultural sector saying the era of Cocoa, Kolanuts, Palm Produce and Cotton for export must come back.
“God has given us fertile lands, we just need to be serious, so that the country can bounce back and retain its lofty position among the committee of nations”, he said.
TAGS: AJADI, MONETARY POLICIES, NIGERIA