Naira May Hit N200 to $1 By 1Q14-Analysts

Nigerians are sharing bitter experiences over the slipping trend of the naira.  Newspapers had reported that the Naira weakened to N171 to the United States dollar at the BDCs by the close of activities Thursday.

In a short survey conducted by the Nigeria CommunicationsWeek, respondents waxed worriedly at the trend warning that the Naira may continue its downward movement.

According to reports during the week banks have not been selling forex exchange to the public, thus forcing customers to rely on the BDC and the parallel market for their supplies.

Sharing his regrets over the trend, Mr. Peter Asolo, said: “I bought dollar for 172.7 Thursday for the first time in my life”.

Analysts heap the blames on the door-steps of the CBN, lamenting that the apex bank has been causing unnecessary panic in the industry by removing management and ownership of banks.

Commenting on this, Asolo said: “CBN brought appointed people, some of whom also reigned in those banks with impunity; displayed over 10000 people from their jobs. At the end of the day were those banks better than they were before take over? There is no single viable window for lending to small business which forms over 80% of the economic activities. Everything we are hearing is nothing but hype.

“Those who are lending are collecting about 28% interest rate the highest anywhere in the world. What a pity. Even in a state of war Nigeria naira should not suffer this great fall. As at last year December it was 149 to a dollar less than one year we are talking of about 22 naira depreciation. Madam Ngozi, the supervisor will come to tell us “there is no inflation” and every purchasing power in the country has decreased”.

“Olutayo Ogunyemi, a public analyst lending his voice to the cause said:  “We import virtually everything to Nigeria which requires high demand for major currencies such as $. We need to go back to the basic and put every infrastructure in place (power, road, etc) and diversify the economy from being crude oil dependent to agric, solid minerals, etc. All these require visionary leaders and not POLlTICAL DEALERS to achieve them. A Dollar exchanged for Naira at the rate of #116 in 2008, and now #172!”

However, Asolo added that, “The prices of goods have gone up by as much as 150% including food stuff. I wonder what economic indices they use to deceive the innocent I see a situation the naira will hit 200 naira to a dollar before the end of first quarter of 2014. If anybody will be honest, that is the actual beginning of the end for the country’s economy. Need I say that this economy is import dependent? The only thing manufactured in Nigeria is sachet water even at that it’s only the water we source locally.

“Government has decided to ban everything knowing that we do not have the productive capacity and we cannot, even if we have stable electricity in the next 5 years. Least I forget to add the fact that no Industry in Nigeria has the capacity to produce the daily consumption of up to 5% of its product for the country’s population which should now stand at about 220million people, if the previous figure of 160million is true. I am just sitting here asking one question when smart and intelligent people will start to manage our institutions.

“The sad part is that most Nigerians are suffering from ignorance and they have all turned to religion for help. The big question is how do we salvage the Naira? Let us forget about politics and parties for once, this is our common language. How do we save the soul of the economy?

Also, they believe that another silent time bomb in population explosion as the mortality rate world over is reducing due to technology advancement. Now people are now giving birth to kids at earlier age than before. Things are happening faster than we can imagine, which the analysts think Nigeria either does something fast to save the naira or we face the music.