Nigeria’s economic downturn: We all share responsibility By Ladi Omole

Nigeria is currently experiencing a significant economic downturn, largely attributed to two major fiscal decisions: the removal of fuel subsidies and the unification of exchange rates.

According to Charles Soludo, a former Deputy Governor of the Central Bank of Nigeria, the current administration had little choice but to eliminate fuel subsidies, a move that was already initiated by the previous administration.

The unification of exchange rates was widely supported by Nigerians, including economists, activists, and the general public.

The expectation was that this policy would eliminate round-tripping, where influential individuals could access foreign exchange at the official rate and sell it at higher black market rates.

An expectation based on hope with no data to know the fact.

Unfortunately, the real impact of these policies has been more severe than anticipated.

The administration aimed to build trust both locally and internationally by adopting a transparent, free-market approach, allowing the naira to find its natural value.

However, this has resulted in a significant depreciation of the Naira.

Now, the pressing question is: what can the government do to mitigate the situation?

Reversing the currency unification policy might be challenging, akin to trying to put toothpaste back into the tube.

At this point, the administration needs to gain public confidence by adopting austerity measures in governance. This will demonstrate that everyone is sharing the burden and that the government is taking steps to address the crisis.

The way forward requires careful consideration of both economic and social policies to stabilize the situation and restore confidence among the Nigerian people.

Omole is Technology & Financial Advisor, Nigerians in Diaspora Organisation (NiDO), New Jersey, United States of America (USA)