Falling Dollar to Naira Foreign Exchange rate?

It has not really been that rosy for the Nigeria naira in the year 2016. The Nigeria's Naira fell in value to Dollar and other top currencies in the world.



Despite a number of measures which the Nigerian government thought could do well enough to curtail the trend. But they all proves quite aborive.

What could be responsible how to curtail the trend?

Importation.

Nigeria is a country that depends on other countries for most of its products aside from a few consummable goods that Nigeria sends out as exports to the outside world.

According to Analysts:
Importation increases the demand for the currencies of the target countries hence increasing its performance in the global foreign exchange market.

Well... the whole event is in line with a basic economic theory:

High demands increases scarcity

Scarcity increases perceived worth

Perceived worth increses commodity price.

The decline in the value of Naira did not just start. It is probably traceable to a few years ago... particularly the year 2000 when Naira slumps to a debilitating value.

Analyst project that if the situation is not arrested, in the mean time, the Naira's exchange rate value to other currencies would be quite alarming.

So what should the country do?

Diversification: There have been an urgent calls for diversification of the Nigerian economy in recent pasts. Interestingly this area seems to be one of the few where majority of economic analysts tend to agree.

Then
One still wonders why more that 95% percent of Nigeria's current export is centered on oil.

Small and Medium scale business empowerment
The secret behind the robust economy of the United states goes beyond its natural resources. In the real sense, the United states owe its economic development to its ability to nurture entrepreneural talents through funds and other forms.

Well the Us is not alone. Japan saw a huge spike in economic growth when the country resolved to minimize its imports and instead concentrated on financing its local innovative ideas.

The situation is exactly the opposite in Nigeria where getting a lone to set up a viable business is a big plight.

Devaluation

While the country did not expilcably declare that it had devalued its currency as a way of leveraging over the falling price of crude oil in the global market.

One may want to give in to the belief of a cross section of analysts who make the claim.

It has not really been rosy for the country for the past few years in terms of the income generated from crude oil exports.

This may not be unconnected to a number of factors:

Pipeline vandalisation
and
Insecurity in Nigeria's Niger delta region as result of what the people of the oil rich area regard as outright neglect on the part of the Nigerian government.

Social Amenities
The social amenity is one of the most basic requirements for the developments of robust economic programs.

This seems on the most unimaginable low ebb in a country like Nigeria and a number of other African countries. The lack of constant power supplies recently forced Michellin and a number of other foreign businesses to relocate from Nigeria.

A word for the youths

If the past and may be [ the current ] leaders have failed the country. What next for the Nigerian youths.

To a Nigerian youth:

Take your destiny in your own hands, set up your own business, nurture your own ideas. After all.. when its all been said and done, everything will be tied to your own name.