Soaring exchange rates – the way forward

mayker2000
Jan 18, 2016
3 min read

It’s no longer breaking news that foreign exchange rates have soared higher than they have ever been and have fluctuated within a higher than average bracket even more frequently within a shorter period of time in recent months.

The questions we need to ask ourselves are not what happened or who is to blame for the unexpected rise. The right questions to ask is what the way forward is? Many Nigerians, even professionals seem unruffled by the news because they believe it will blow over like many other forgotten “issues” of the past.

What most people don’t know is that experts predict that by quarter two, the exchange rates could rise to $500 = N1. Therefore, this is an issue that everyone needs to take seriously.

Nigeria has always been known as a country that is heavily dependent on importation. This has grounded local industries and has caused the manufacturing sector to suffer terribly, and be taken advantage of by foreigners.

The current surge in exchange rates is a clarion call for Nigerians to “go back to the farms”, in a manner of speaking. It is time for us to look inward and display the creativity and doggedness that we are known for. Both the private and public sectors need to come together to reinvent our local industries and make the manufacturing sector 100% fully functional.

Afterwards, we can begin to manufacture products that are useful to our everyday lives but unusual to our culture. Most of these products are being imported anyway such as onion powder etc.

Once our manufacturing is at par, we can begin to export these products to Asia and other African countries who find themselves in our present situation.

The westernization of the world has left a big gap to be filled for us; by customizing our products with our unique names, colours, patterns, scents and flavors that are indigenous to us. Imagine Zobo drink bottled and canned like Coca Cola. It might not sell here, but other continents will fall in love with it.

Let’s take for example the textile industries. This is the biggest potential employer in Nigeria. One textile industry has the potential to employ over 3,000 Nigerians and take even more people out of poverty. Relay industries would also benefit from the “textile boom”, and that is one industry alone.

I am sure you are thinking about the lack of infrastructure etc. for example, electricity which is a necessity to develop industries. This is the time for us to go alternative. We keep talking about solar, hydro, biogas etc. there is no better opportunity for us to invest in these than now.

It’s time for us to take our sense of community and unity away from “aso ebi” alone and inject it into our corporate culture. Imagine a “textile power plant” powered by any of these strictly for the textile industry. Each company shares the startup cost and bares the unit cost for its operations. The plant its self will employ people and further reduce unemployment.

Throughout history, breakthroughs, inventions and social revolutions, have been born out of moments and seasons like these. Wealth is dynamic and fluid like water. It flows from one sector and industry to another as controlled by the hands of time. Who ever thought people in the almighty Oil and Gas sector would be seeking a bail out or looking for jobs elsewhere?

Are you Nigerian? Do you live and work in Nigeria? Do you want to make wealth?