News in Nigeria is dominated by President Bola Tinubu’s economic reforms, which seeks to revive the country’s economy. However, despite the efforts made, the results are slow to be felt, five months after the inauguration of the president.
One of the key measures of these reforms was the devaluation of the naira, the national currency, last June. The objective was to streamline the complex exchange system and put an end to the fraudulent practices that were taking place, particularly in the black currency market.
However, this devaluation did not have the desired effect. On the contrary, the naira continues to lose its value on the parallel foreign exchange market, even reaching a rate of more than a thousand naira to the dollar. This situation makes access to foreign currencies difficult, which hampers the economic reforms undertaken by the government.
The consequences of this devaluation are felt by businesses, particularly small and medium-sized businesses. Production costs are increasing significantly, leading to an acceleration of the already high inflation in the country. Sectors dependent on imports are particularly affected, as it is increasingly difficult to find dollars to import raw materials or finished products.
These cost increases are reflected in the selling prices of products, which weighs on the purchasing power of consumers. The poorest are the most affected, because they find themselves faced with an increase in the prices of basic necessities. For example, the price of sachet water has almost tripled in a few months, making access to this resource difficult for many families.
Faced with the currency crisis, the Central Bank of Nigeria recently decided to lift restrictions on imports of certain essential products, such as rice, chicken and cement. This measure aims to facilitate access to foreign currency for imports of these products, in order to limit the impact on prices and meet the needs of the population.
However, these measures are only temporary solutions. To sustainably resolve the currency crisis, it is necessary to work on diversifying the Nigerian economy in order to reduce dependence on oil exports and encourage local production. It is also essential to strengthen the fight against corruption which encourages fraudulent practices in the foreign exchange system.
In conclusion, economic reforms in Nigeria face many challenges, including the currency crisis which impacts businesses and the population. Temporary measures have been taken to mitigate the effects of this crisis, but there is a need to adopt a more comprehensive and sustainable approach to revive the country’s economy.