Dis na wetin Nigeria goment gatz do to stop di free fall of naira to dollar

Inside di last two months Nigeria don experience very heavy demand for dollar for di foreign exchange markets.

Di latest cost of naira to dollar dey gradually bring di Nigeria economy to standstill and sabi pipo say for di kontri to manage dis over high price wey just dey increase dey go, goment need to begin torchlight how to make di currency stronger.

Nigeria dey witness free fall of di Naira against di dollar as $1 to naira hit N945 on Monday 14 August, due to say dollar wey dey available no reach to meet di demand for dollar.

Di kontri wey im economy depend mainly on importation of almost evri tin, dey face excessively high demand for dollar to support lifestyles of Nigerians.

For all dis dollar base demands, e no dey do enof exportation to make di dollar wey im kontri pipo need to pay for wetin dem want weda na for business, comfort or education.

“Unfortunately, a lot of activities wey we dey do wey be pure local waka, pipo still dey try connect am wit foreign exchange rate,” Central Bank of Nigeria (CBN) acting govnor, Folashodun Shonubi tok.

Still, Victor Aluyi wey be financial analyst say, dis demand for dollar no go go away, so diafore, di only tin na for di goment of Nigeria to make dollar available.

Di CBN, na im be di major supplier of dollar and nobody fit just carry foreign currency enta di kontri witout dem, Muda Yusuf wey be Nigeria economist tok.

“Usually wen you get dis kain high demand, di central bank suppose intervene by using di kontri foreign reserve (money wey dem save in foreign currency) to take defend di naira,” Aluyi tok.

Under di new goment of President Bola Ahmed Tinubu, CBN, unify di exchange rate.

Di idea na to ginger pipo wey bin dey hide dollar for dia house to bring am out.

Wit di unified exchange, di price of dollar to naira bin become di same for some time, but e no last.

Aluyi say, sake of di small reserve wey Nigeria get, wey be just $18b, CBN “no fit do much at dis time” to prevent di fall naira against di dollar.

So, wetin fit to happun to make Nigeria get more dollar to spend, plus reduce di demand on dollar.

Tins goment gatz do to defend di fall of dollar

Sabi pipo say for di naira to stop di heavy fall wey e dey experience since di last two months, di goment need to address some major issue dem.

Speculation activities

CBN acting govnor, Shonubi, say dem no believe say di kontinu fall of naira na sake of economic demand and supply but say na pipo wey dey speculate on di dollar - na dem di make am fall.

Di top bank announce on Monday, afta di govnor meeting wit President Bola Tinubu say, dem go go afta speculators and wetin dem plan to do to dem, wen dem finish, dem go lose dia money.

Still, sabi pipo dey argue say di capacity of CBN to check di fall of di naira dey very weak and na dis dey cause pipo to dey speculate for profit or due to panic.

E get plenty Nigerians wey believe say di price of dollar go increase, diafore dem dey buy dollar keep for dia house dey wait for am to increase make dem sell, dis pipo dey dey call dem speculators.

For Nigeria e get two kain speculators: individuals wey dey use buying and selling of dollar make money, and importers wey dey buy dollar keep becos dem dey worry say, wen dem need am to buy market for future, e go don increase for price.

Muda say "e get pipo wey get imformate say CBN no get power to kontinu to defend di naira and dem don see am say di naira go kontinu to fall, so dem dey speculate on di currency."

Dis speculators believe say naira fit “reach N1,000, so dem go buy, hoping to sell am at N1,000,” Ayuli tok.

Manufacturers no dey use dollar evri month. Dem dey buy dollars like every 60 days or even 90 days.

But di financial analyst say, di wahala wit importers and manufacturers be say, dem need to dey sure say dem go fit get di dollar sharply wen dem need am.

"Every time dem go buy market, dem dey buy dollar keep so dem no go hear tori say e don go up, wen dem need am to buy market. So dat too dey create wetin resemble panic buying or speculation and dis dey drive price go up," e add.

Carryover of foreign exchange demand

Di new goment wey just enta office inherit heavy carryover of foreign exchange demand from di President Buhari goment wey dem bin no fit settle.

Dis carryover include about $800m wey CBN dey owe airlines wey no fit carry dia profit go back home becos dem no fit convert am to dollar.

Add to dis, Economist, Yusuf say, "CBN bin also commit some fraud," plus get some foreign debts wey Buhari goment bin no service,

Musa say, "All dis backlog or carryover put plenty pressure on di foreign exchange market."

Fuel importation

Fuel importation na major major wahala wey dey break Nigerians head since di last two months.

Di kontri dey depend heavily on imported fuel becos non of im many refineries dey work at all and dis dey also put serious pressure on forex.

"If for instance we stop to dey import petroleum products, you sef imagine di kain pressure wey e go reduce on demand for forex?" Oga Yusuf ask.

E say Nigeria dey import almost one billion dollars worth of petrol enta di kontri every month, "so if e stop to import dat one, e go reduce di pressure wella."

Corruption money for di system

Corruption na major palava for Nigeria and sabi say e get plenty corruption money for di system.

Pipo wey dey hold dat kain money dey prefer to keep am as hard currency so dat e no go lose value and dem go fit protect dia money.

Oga Muda say, "most money from corruption, pipo dey convert am to foreign currency. and even pipo wey wan bribe pipo most of dem dey use dis foreign currency.

"Di corruption dey put pressure on di dollar becos pipo wey no work for di money wey dem get go gree buy di dollar any amount, even if e reach N1,000 dem go buy, unlike wetin e be for manufacturers and business pipo."

Meet OPEC quota

E dey important for Nigeria to improve im oil production to meet dia Opec quota, Aluyi tok. Becos di more di kontri sell im oil, di more dollar CBN go get to meet demands.

Over 90% of Nigeria foreign exchange still dey come from oil and dis na di only way wey CBN go fit to perform beta to support di naira and make am stronger.

But insecurity for di Nigeria Delta na big wahala wey dey worry crude oil business.

So even though Nigeria for make beta money as crude oil don dey sell for $80 per na barrel, di kontri no fit meet im quota for Opec.

"If we fit meet our quota for OPEC, in terms of export of crude oil, dat one too go help.

Nigeria quota for OPEC na 1.8 million barrels of crude oil per day, but di kontri dey one million to 1.1 million barrel per day, Yusuf add.

E say di crude oil wey tiff dem dey steal for di Niger Delta, don make many of di major oil company dem to leave di kontri.

Muda say for goment to fit meet im OPEC quota, e gatz first stop di stealing of crude oil and insecurity, so di companies wey still dey ground go fit operate wella.

Di second tin wey im say goment must to do na to attract foreign investors.

Attract foreign investors

As e be say na foreign investor like oil companies and odas dey make dia money in dollars, e dey important for Nigeria to attract dem enta di kontri.

For foreigners and investors to come put dia money for di kontri, Muda say e dey important make not just security gallant, but also di policy or laws wey dey guide business for di land must to also set.

Nigeria na very big market wey dey totori foreign investors and dat na why e dey important say goment set ground well to attract dem come.

Dis foreigners no be only di ones for oil sector but all oda sectors too.

Di kontri don witness many international business dem dey pack dia load waka sake of many different reasons wey no favour business environment.

Build infrastructure

Electricity, beta road and railway to take transport dia market plus dia service, dat na wetin dey totori investors to enta any kontri do business.

But for Nigeria, light plus beta transport system get plenty k-leg wey wan be like dem no get solution.

Muda say no foreign investor wan enta di kontri begin carry generator upanda.

"How many investors way come here dey carry generator upandan? Many no go come.

"How dem wan take move from one place go di oda? How you want take move your market from one point go di oda?

Di structure for di environment gatz dey okay so you no go just attract pipo wey go dey buy tins wey dem don produce finish, come sell for her," im ask.