Naira Falls To New Low, And So What?

The fall of the naira in 2015 is clearly one of the most notable milestone event in 2015.
The beginning of the plunge in naira and foreign reserves can be traced to fight for personal interest by world powers. If any one was in doubt, the recent reversal of the United States policy on crude oil export is another pointer.
For forty years, the country decided not to export its oil, but be an importer instead. But the time is come to make a bold point. 
Russia, alongside countries like Nigeria that made crude oil their ‘god’  have become like primary school pupils who are learning the curves again.
When these things happen, only home grown economic sense can rescue those that want to survive. 
China is a typical example of this survival instinct. They looked inward, locked themselves in and came out with a model that put them firmly on the world map. They were called names, analysts labeled them, but today who is he wiser.
This brings us to the real issue. They (China) devalued, but the same economist or analysts frowned at them for not following some norms, but like the Jonny Walker advert, they knew where they were going.
In Nigeria, the reality downed on us, that it is time look inward, yet, the same analysts say, we must follow the norms and are still fighting to ensure that fully grown man (an independent country like Nigeria) is whipped into line.
What will a normal reasoning nation do, when your foreign exchange earning dwindled after it has been conspired against? Of course make bold decision. But when that bold decision is made, some super powers and their cohorts say differently. What sense will it ever make to continue to import things you can readily produce at the expense of fast dwindling foreign exchange earnings? And when you continue to import, who is the benefactor?  Of course, it is the same super powers that you are helping to pay their workers salaries, while at the same time, you make it impossible to pay your own workers salaries.
It is no wonder that Nigerians are poor. For instance, in Nigeria, according to survey by Pew, the share of the poor fell 18 percentage points between 2001 and 2011, and the proportion of low income earners grew 17 percentage points, while during the same period the share of middle income earners rose just one percentage point.
W have an official exchange rate that is just shy of N200 per dollar at the official market. But for those that have their personal interest to pursue, they have to cough out close to N300 to achieve their selfish agenda.
Because some special Nigerians, less than five percent of the total population in the country must send their wards abroad for education, must wear imported clothes, can only receive medical attention outside Nigeria, and so on, will have to procure scarce dollars to boost those economies at the expense of their own. So when the back market rate soars pm who cares, but sone ‘thieves’ who want to pay scarce dollar for their wards school fees or go for medical check up abroad.
At N280 to the dollar at the black market, what is the business of about 95 percent of Nigerians with that exchange rate? Only those that want to play the ‘big ma’ role will not like to buy goods not made in Nigeria.
What is wrong if Nigeria returns back to its first love, just as President Mohammadu Buhari and te Vice President Osibanjo are saying? Say no to orchestrated devaluation as being suggested by analysts that have no love for the country?
Let us take a look at those items the Central Bank of Nigeria (CBN) said it will not sell dollar to for importation.. These are things we can conveniently make in Nigeria and we will get not only get better value for, but will help the country to import ploy lots of people.
For those who are old enough to remember, Nigeria economy was by far more robust when it had not discover oil. We were able to produce most of our needs and, even our naira was superior to the dollar, maybe the pound starlings too. We had our dignity among the nations. Maybe we should just do what the United States did forty years ago. Bound export of crude oil henceforth and let us see what happens.

As U.S Resumes Crude Oil Export

Now that the United States Congress is comfortable, it has lifted the 40-year-old ban on the export of the country’s crude oil, as part of an omnibus budget bill.
Lifting the oil export ban, which was one portion of the $1.1tn spending bill that sailed through Congress on Friday, marks a historic shift for the booming US oil industry.
The Senate, in a 65-33 vote, approved lifting the ban, while the House of Representatives passed the legislation earlier in the day by a 316-113 tally.
President Barack Obama later signed the 2016 spending bill, which includes a provision that would allow the export of US crude for the first time in more than 40 years.
The Chairman of the Senate Energy and Natural Resources Committee, Lisa Murkowski, hailed the passage of legislation that would lift the 40-year-old ban on domestic crude oil exports.
“By lifting the domestic crude oil export ban, we are sending a signal to the world that our nation is ready to be a global energy superpower. With crude exports comes job creation, economic growth, new revenues, prosperity, and enhanced energy security for our allies and ourselves,” Murkowski said.
“The omnibus may be a short-term spending bill, but thanks to this provision it will deliver long-lasting benefits for our nation and the world.”
Murkowski first proposed lifting the ban on crude oil exports in January 2014 and since then has built a solid case for modernising the nation’s energy policies.
Congress, concerned about US dependence on imported oil, imposed the crude oil export ban after the Arab oil embargo of the early 1970s that sent gasoline prices soaring and contributed to runaway inflation.
Arab members of the Organisation of the Petroleum Exporting Countries imposed the embargo following the US decision to re-supply the Israeli military during the 1973 Arab-Israeli war.
US oil producers will now be able to sell crude to the already saturated international market.
The bulk of US oil comes from shale producers. Production and exploration companies argued the ban – imposed during the Arab oil embargo in the mid-1970s – was outdated and unnecessary.
Opponents claimed that lifting the ban would lead to the loss of oil refining jobs and would be bad for the environment.
As a trade-off for lifting the ban, the spending bill includes tax breaks for solar and wind power and a pledge by Republicans not to block a $500m payment to the UN Green Climate Fund.
From the happenings all over the world, there is need to allow the Buhari-led administration return the country to the path of dignity once again.

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