Nigeria and its ailing economy
No doubt, with the economy needing a revitalisation and the current dwindling state of oil prices in the country, it has become unavoidably imperative for more strident steps to be taken in other to curb this very menacing state capable of crumbling the growth of any nation.
Written : Dickson Eyinmosan
Most ailing economy in the world that has survived this kind of startling economy embarrassment didn't just folds their arms to relying on some sort of mother luck to do the magic. The turning point for them wasn't because they noticed such economic hiccups and did nothing, but because they noticed it and worked harder to averting such impending disaster.
Secondly, what has seemingly worked for any nation who obviously got knocked down but gallantly survived economic hardship, is the ability of both her leaders and the led in keeping home grown industries alive by patronising her locally made product which in turn boast economic growth as more money will be injected into the system thereby increasing her Gross Domestic Product (GDP) growth which is relative to her Gross National Product (GNP). #BuyNaijaToGrowTheNaira( one of the surest ways to improving the economy)
Subsequently, the Nigeria situation is really not different from any other case that has been recorded in the reels of global events as no one nation who has attained greatness accomplished such in isolation.
With her current falling oil prices and market instability, the country is faced with dwindling economic downturn as her currency takes a fast nose dive to the negative direction. This has given rise to high cost of various commodities as her naira denomination depreciates in a fast pace to a strenghtend dollar in the global market pricing.
Industries are gradually running out of resources and manpower as majority of this industries who get her raw materials outside the shores of the land can no longer contend with the astronomical hike as a result of our failing naira value
With the price of oil failing with over 70% in terms of it decrease, there is no doubt that since we operate an economy solely dependent on oil, the effect will clamp down on our foreign exchange earnings, as more naira will be needed in exchange for fewer dollar.
The country's external foreign reserves which serves as home base for our excess crude fiscal policy will no longer function for that purpose as there will be no more excess going to that account instead the current situation sees a possibility where government will now seek for more fund thereby tempering with the already threatened fund in our ECA.
Financing the deficit in the budget is another dire implication as the FG will now resort to borrowing both from foreign and national financial institutions seeking for help in order to meet certain overhead cost required for her capital expenditure. This however, potends another dooms day as been financially indebted especially to foreign institutions with an ailing naira value spells more chaos than help.
Employment depletion tends to increase as since the FG could possibly allow for a downsize due to its current financial status, there is no gain waiting for a soothsayer to break the impending doom in our employment sector as more companies especially the oil oriented organization cannot afford to hire more manpower when the demand for such commodity at the global market remains dreary with meagre pay.
No doubt, the situation in Nigeria remains the case of sparrowing oil industry running at a colossal loss if we fold our arms and do nothing.
Strident measures are key in order to revalitalize this drowning economy if we must surpass this disaster.
However, it is in the light of this that we commend the efforts of the Nigeria president as he travels to Saudi Arabia and Qatar in search for solution as he tries to sell out the country's other sector capable for investors to put their money in a quick bid for a rescue mission.
Written : Dickson Eyinmosan
Most ailing economy in the world that has survived this kind of startling economy embarrassment didn't just folds their arms to relying on some sort of mother luck to do the magic. The turning point for them wasn't because they noticed such economic hiccups and did nothing, but because they noticed it and worked harder to averting such impending disaster.
Secondly, what has seemingly worked for any nation who obviously got knocked down but gallantly survived economic hardship, is the ability of both her leaders and the led in keeping home grown industries alive by patronising her locally made product which in turn boast economic growth as more money will be injected into the system thereby increasing her Gross Domestic Product (GDP) growth which is relative to her Gross National Product (GNP). #BuyNaijaToGrowTheNaira( one of the surest ways to improving the economy)
Subsequently, the Nigeria situation is really not different from any other case that has been recorded in the reels of global events as no one nation who has attained greatness accomplished such in isolation.
With her current falling oil prices and market instability, the country is faced with dwindling economic downturn as her currency takes a fast nose dive to the negative direction. This has given rise to high cost of various commodities as her naira denomination depreciates in a fast pace to a strenghtend dollar in the global market pricing.
Industries are gradually running out of resources and manpower as majority of this industries who get her raw materials outside the shores of the land can no longer contend with the astronomical hike as a result of our failing naira value
With the price of oil failing with over 70% in terms of it decrease, there is no doubt that since we operate an economy solely dependent on oil, the effect will clamp down on our foreign exchange earnings, as more naira will be needed in exchange for fewer dollar.
The country's external foreign reserves which serves as home base for our excess crude fiscal policy will no longer function for that purpose as there will be no more excess going to that account instead the current situation sees a possibility where government will now seek for more fund thereby tempering with the already threatened fund in our ECA.
Financing the deficit in the budget is another dire implication as the FG will now resort to borrowing both from foreign and national financial institutions seeking for help in order to meet certain overhead cost required for her capital expenditure. This however, potends another dooms day as been financially indebted especially to foreign institutions with an ailing naira value spells more chaos than help.
Employment depletion tends to increase as since the FG could possibly allow for a downsize due to its current financial status, there is no gain waiting for a soothsayer to break the impending doom in our employment sector as more companies especially the oil oriented organization cannot afford to hire more manpower when the demand for such commodity at the global market remains dreary with meagre pay.
No doubt, the situation in Nigeria remains the case of sparrowing oil industry running at a colossal loss if we fold our arms and do nothing.
Strident measures are key in order to revalitalize this drowning economy if we must surpass this disaster.
However, it is in the light of this that we commend the efforts of the Nigeria president as he travels to Saudi Arabia and Qatar in search for solution as he tries to sell out the country's other sector capable for investors to put their money in a quick bid for a rescue mission.
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