Nigeria should change the course of its economy and find a solution to the ongoing recession. According to the national bureau of statistics, more than four million people lost their jobs in 2016, and this number has continued to increase in 2017. More than half of population in Nigeria live in poverty and hardship. The beginning of 2017 showed some positive changes, but they have not affected the whole aspect of the Nigerian economy. What should Nigeria do to change the situation? At least ten steps should be taken to make Nigeria great again!
Economic Recession in Nigeria
Most economic experts try to proffer solutions to the Nigerian Government. The government often keep Nigeria in the dark when they try to describe the methods they are using to battle the economic problems. They often say things Nigerians do not really understand.
None of their plans and solutions has been opened to the public. They keep providing Nigerians with the general thesis that the economic recession and solution are not easy for ordinary citizens to understand.
The representatives of the Nigeria government should think about the solutions as it`s their job. At the same time, other citizens of Nigeria should care more about their jobs and how they perform their duties. High-level politicians are trying to find solutions that are not easy to grasp, and other citizens just need to keep a good job for the prosperity of the economy.
It`s true that politicians can make the greatest impact on the economy. Nobody said finding our way out of the recession will be easy. Still, it does not mean that people shouldn`t know all the steps needed to deal with the recession. It makes no sense for politicians to continue to provide people with vague promises that are not working and they simply expect the citizens to just trust them.
Just because it might be difficult for the average Nigerian to read and understand thousands of pages detailing the economic issues does not mean the pages should not be open to the public. Moreover, politicians often use short versions of these plans as a way to understand the economic recession. Why not provide these plans in more vivid presentations to the public?
It`s easy to say that previous governments are responsible for the economic recession we are experiencing today. However, people chose these government! It means that everybody is responsible for the economic recession today even if it is through minimal impact. Politicians are responsible for making wrong actions and not sharing their plans with other citizens.
Other citizens are to blame because they did oppose to these decisions and did not protest to the secrecy of the government. Nigeria is not made by just the president – every citizen of Nigeria is Nigeria. Therefore, if Nigeria prospers, everyone is to be praised; if Nigeria fails; everyone is to blame.
The solution to economic recession is not a matter that can be solved secretly and privately. This will only make people suspicious about the actions of the government. A secret solution to economic recession will only cause more confusion and suspicions.
If a politician keeps speaking about this, then it`s either the politician does not have anything to offer or has nothing good to offer. Secrecy in some sort is needed if it`s about the national security of the country. However, it`s not about the national security, but about people losing their jobs and enriching oligarchs – then people have the right to protest.
Take the USA as an example. When the World Crisis in 2008 happened and millions of Americans lost their jobs – instead of talking about how difficult it would be to provide information about changes to the citizens, the USA Government provided the “2009 Stimulus”. The aim of this was the American Recovery and Reinvestment Act of 2009 (ARRA). This provided short steps towards resolving the economic recession and its impact.
Citizens of the USA could see all the steps being taken by the government in dealing with the recession. If they did not agree with any aspect, then they could protest the decisions. Moreover, before the creating of this document, the whole country discussed the several ideas to help deal with the issues.
The “2009 Stimulus” was an act between citizens and the government, where everybody had a part to play. Nigerians should understand that they can demand that the steps being taken by the government should be made public. All Nigerians can take part in the discussion! Nigerian Government shouldn`t have to be discreet about its actions.
Economic Recession in Nigeria – How did it start?
Obasanjo and Jonathan are definitely to blame for today`s economic recession in Nigeria. Through the private sector of the economy, they managed to transfer millions of dollars to Europe and USA. They also failed to build infrastructure for Nigeria.
In addition, they offered government projects to private companies that had connections with them. Still, it`s counterproductive to blame them now. Nigerians made their choice, and they did not protest the actions of the previous presidents. There was no impeachment procedure launched.
Another problem that greatly influenced the economic recession in Nigeria was terrorism. The new terrorist organisation called Niger Delta Avengers showed up in Nigeria a few years ago. They destroyed and damaged Oil and Gas facilities. This situation made a great impact on the export of crude oil. Therefore, Nigeria as one of the biggest exporters of Oil lost their position in the global arena.
There were also international factors that have drastically impacted the national economy. One of the first problems on the Global Arena is Saudi Arabia Oil War. Saudi Arabia has its influence in the Arab world and these interests are also situated in Syria. Saudi Sheikhs oppose Bashar Assad and Vladimir Putin in the Syrian Civil War.
Saudi Arabia also had a desire to crush all other oil exporters. Therefore, they started to pump oil for less than $10 a barrel. It means that low prices for Oil are still profitable to them. The USA also opposed Russian Federation as both countries have their interests in Syria and Ukraine. Therefore, USA also took advantage of the low oil prices when replenishing their oil depots.
Another main cause of the economic recession in Nigeria also came from the USA. This country decided to increase the interest rates on the dollar. They made this decision public in 2014. This decision led investors on forex to buy more dollars and that increased the value of the dollar again. The USA finally increased interest rates from 0.25 to 0.5%. It then caused the Naira to crash.
There were many other international problems that caused the economic recession in Nigeria. Is it possible to find a solution to economic recession in Nigeria? Yes, it can be made in at least ten steps!
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Where is Nigeria today? Where are Nigerians going? We can certainly see the vision for China and India. They are the countries that provides fabrics. It`s possible to see the vision of Singapore, South Korea and Japan as they are technological centres of the world. Even North Korea has its vision as a strong militaristic atomic state. What about Nigeria? Until Nigeria finds its path – nothing will happen. Therefore, the vast resources of Nigeria should be invested in the future vision of Nigeria.
There is no solution to economic recession without a strong police force. The police force in Nigeria should be decentralised as today`s situation can only lead to catastrophe in future. The strong local police may prevent actions of local bands and even terrorist organisations. The army shouldn`t be used instead of police as they are not trained to investigate. Therefore, a strong local police and even a selection of “sheriffs” can aid security in the nation.
Increase control over CBN Governors
One of the main problems of the CBN governors is that they keep funding their banks in Nigeria, so it gives them dirty advantages over other banks. Bankers have been the only governors of CBN. There is no question that they know the banking sphere and it makes sense that they should be governors. Still, the control over their actions should be increased as often use CBN as their own bank.
Made in Nigeria
Made in Nigeria should not just be a slogan. One of the main reasons why Nigerians do not buy Nigerian goods is the reliability. Nigerian government should increase the standardisation boards of the country. Customers should be one hundred percent secured by the government. Companies who failed to fulfil their warranties should be shut down. Products should be certificated by the Ministry of Industry.
Promote small business and lower interest rates
The government should create alternative sources of capital for small businesses. Large companies must be properly taxed. They shouldn`t have much support from the government if they keep dropping. Small and medium enterprises should be supported as they grant jobs to 80% of the population.
Open the Market
The CBN`s import ban list has always been a source to promote monopolies and oligopolies in Nigeria. Only a poor economy can depend on monopoly. You can`t invite investors on the market while their products are banned from being imported
Recover Nigeria`s USD Billions
The Nigerian Government should stop borrowing money and rely on their own resources. Nigeria should ask the world to return money transferred to various banks by corrupt government officials. Billions of dollars are located in the European and American banks. They should be recovered and returned!
It`s impossible to create a stable economy if there are two spectrum for the naira. The official Inter dollar ranks for today is 305 Naira for one dollar, where the black market sells it for 400-407 Naira. This situation can only lead to corruption. The corrupt bank officials can make money out of thin air. They can earn about 100 Naira for every sold dollar in the black market.
The revenues made by this scheme can be result in millions of dollars. Reuters publicised an article called “Africa`s Richest man got a fistful of dollars in Nigerian currency squeeze” where it showed the results of one peculiar investigation. In this article they showed how Aliko Dangote managed to earn extra 100 million dollars due to differences between official rates and black market rates. He managed to make it in just 11 weeks! Therefore, he can make another half a billion of dollars this year just playing with official and black market dollars’ rates.
Take advantage of devaluated Naira
Investors leave the country because they do not want deal with black market rates of Naira. They do not agree with official positions toward this issue. If Nigeria devaluates Naira and the official and black market will be equal, then Nigeria can expect more investors in the inner market.
Focus on citizens
One of the main problems for the government in finding a solution to economic recession is that they think about the Naira and not about the people. Nigeria should cut down the amount of money paid to public officials and start a way for new economy for people. It`s not practical to use ten private jets to support government officials.
The life of Nigerian politicians and that of the average citizen should be equal. Instead of borrowing another billion, take back billions of from the reserves of corrupt government officials in Europe. Government officials shouldn`t have secret accounts in European banks. Take China as an example, where all the representatives of high political powers save their money in Yuan and Chinese banks.
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