Who Raped the Naira?

WHO RAPED NAIRA?

    

The last time I checked, the Nigeria’s currency, Naira suffered a seemingly unpredicted rape though the identity of the rapist in question was significantly unknown. This critique was informed by the compelling need for every Nigerian to comprehend fully the overall nomenclature of the masked rapist.

    Currently, the worth of naira per a US dollar is almost #400 in the parallel market as against its official exchange of #198. Though it isn’t only Nigeria that is confronting the US dollar that is presently ravaging her once respected currency, naira and local economy – some other countries are obviously passing through similar fate, but it’s pertinent to acknowledge that the ongoing misfortune of the said currency didn’t abruptly emerge; suffice it to say that the above mentioned ‘rape’ was apparently a foreseen circumstance.

     Going down the memory lane, it would be recalled that from 1972 to 1985, the official worth of naira per a US dollar was between #0.66 and #0.89 involving a consistent slight fall and rise. From 1986 to 1992, it was worth between #2.02 and #9.91 involving a steady fall. Subsequently, from 1993 to 1999, its worth was between #17.30 and #21.89 involving an onward apparent constant exchange rate after an initial decrease. Similarly, from 2000 to 2009, it was between #85.98 and #145, which involved an outrageous continuous fall.

   
Then, recently from 2010 to 2015, we witnessed a steady fall from #150 to #171. And presently, barely from last year till date, it has declined to #198 per a US dollar, witnessing a free fall. The bone of contention is that ab initio, excluding the initial point when it was ostensibly steady, there has been a continuous fall of the value of naira when compared to the US dollar.

    
Hence, having painstakingly perused the above comprehensive chart, I have succeeded in disabusing us of the notion that the fall of the exchange rate of naira either at the official market or parallel market commenced in recent time. Needless to say that naira had suffered an untold hardship from genesis till this moment.

     But if you take a closer glance at the above analysis, you would observe that it was during the democratic era that the naira’s value fell outrageously, although the origin of its downward depreciation could be traceable to 1986 or thereabouts. In view of this assertion, one may be challenged to ascertain the reason for such anomaly.

     The answer is simple. Any democratic leadership, compared to military regime, is usually synonymous with loose principles or policies. This implies that the former often ends up overlooking the invariable nonchalant or lackadaisical attitudes of its citizenry which is definitely not a wholesome practice in any society that intends to grow economically. Most times, sustaining a certain policy requires a nonhuman face.

     Looking beyond the history, currently it’s obvious that the value of the Nigeria’s currency, naira is diminishing on a daily basis as if it’s being relentlessly and endlessly pursued by a hidden monster. The ongoing phenomenon unarguably is categorically not unconnected to the recent stiff measures taken by the nation’s apex bank – the Central Bank of Nigeria (CBN).

    
It’s no longer news that penultimate year, foreign exchange for importation of various commodities into the country was banned by the said bank. This severe approach warranted people particularly importers to divert their attention to only the various illicit Bureaux De Change (BDCs) situated across the nation. Consequently, the CBN ordered the closure of all the existing branches of the BDCs in Nigeria, and thereafter stated that it could not continue selling foreign currencies directly to them (the BDCs).

    
Owing to the above sanctions, the various seekers of foreign exchange have shifted their entire attention to the parallel market thereby causing an alarming increase of the demand for forex at the market. This is no doubt the sole reason a US dollar is being unofficially sold at almost #400.

    
However, the question remains: who raped Naira? Unequivocally, naira was dastardly raped by some unscrupulous elements in Nigeria as a result of their selfish interests. This signifies that the present pitiable physiognomy of naira was occasioned by the fact that she was gang raped. One of the rapists is the inability of Nigeria to export a finished product to other nations, not even the oil and gas which are in abundance in the country. How can a country be importing a product that is being generated from its land? Doesn’t it sound ridiculous? Undoubtedly, the relative steady rate of the foreign exchange in Nigeria during the early years such as between `72 and `85 or thereabouts might not be unconnected to the obvious fact that the various Nigeria’s refineries - in Port-Harcourt, Warri and Kaduna, were functional during the said era.

     It doesn’t end at the fact that we are importing virtually everything including toothpick, our education and health sectors are also fundamental plights to our forex. It’s obvious that due to inadequacy in spite of the uncountable number of tertiary institutions situated across the federation, millions of our children are currently studying abroad even in such educationally less-privileged countries as Kenya and Niger Republic thereby warranting the export of billions of naira on a daily basis. Same nauseous practice is applicable to the health sector; none of our prominent citizens receives medical treatment in Nigeria, especially in issues relating to surgery. Every pregnant Nigerian woman wishes to deliver her unborn baby in the US.

    
Inter alia, the country’s science sector that was relatively alive and viable had abruptly become soared. All the country’s technical colleges are currently moribund thereby posing a deterrent to our teeming young ones in regard to production of scientific gadgets contrary to what was formerly witnessed among them. In the same vein, none of the government owned industries is functional at the moment. Frankly, everything has completely gone wrong, thus requires a total turnaround.

     The demand for foreign currencies, in particular dollar which remains a global commercial currency, is presently astronomically high in Nigeria as a result of the fact that virtually nothing is seemingly happening in the country; Nigerians want to get everything done outside Nigeria or by foreigners. Almost every contract is being awarded to foreign firms as if ours aren’t equal to the tasks. An average Nigerian would prefer embarking on a trip to England for a football match between Chelsea FC and Manchester United FC to travelling to Owerri for a match between Heartland FC and Enyimba FC. A two-day relaxation period or a honeymoon would be spent abroad as if our hotels are mere hatches. In a nutshell, we are currently enjoying foreign services in all our day-to-day activities. This is why the country is being hit by soaring inflation. Without mincing words, our past leaders assisted in raping naira because they had the immunity to address all these anomalies but they never cared.

     To restore normalcy, first we need to start by believing in ourselves which would enable us to at all times encourage our locally made products as well as our indigenous services. In other words the ban on forex against most goods and services ought to be strengthened headlong; this implies that our various borders need to be holistically checkmated at all cost. In the same spirit, the ban needs to be extended to other activities to include travelling abroad for trivial issues.  Similarly, all the illicit forex dealers must be captured and thereafter brought to book without much ado; the saboteurs don’t deserve any mercy. Hence, the Money Laundering bill that was recently sent to the National Assembly by the Presidency must be considered seriously.

      Most importantly, we must revive such most of our essential sectors as the aforementioned ones. In addition, the power sector ought not to be left out; it’s imperative to note that several countries not unlike the USA that can’t invariably boast of up to 15 degree Celsius are currently sourcing their electricity from the solar energy let alone a country like ours that constantly boasts 40 degree Celsius that lasts for a long period of time. Indeed, this proposed measure is meant to be handled with an utmost political will.

    
Surely, devaluing naira as being agitated in some quarters isn’t the required avenue towards bringing the group of monstrous rapists that are on the run to book. Hence, we needn’t a soothsayer to notify us that we’re expected to drastically do the needful to return naira to her initial resplendent countenance that has suffered a colossal rape. Think about it.  

Comr Fred Doc Nwaozor

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