I still find it funny that most people don't know why
Nigeria economy went into recession, they love the incompetent lies of Lai
Mohammed about the past government ruining everything. It's also myopic to
think that if Jonathan were to still be in power, we would be worse off.
The truth about Nigeria's recession is this; it was caused
by the president's unguided rhetoric and uncultured body language.
Firstly, there is nothing we are buying today that we
weren't buying 5 years ago, therefore it's not our purchase that put pressure
on Naira but withdrawal of funds by foreign investors.
After the election, the president created instability with
his unguided statements about how everyone is corrupt and how everyone is going
to jail. The instability made foreign investors to liquidate their investment
and change their money to dollars. In the process of trying to flee, they were
willing to buy dollars at any price, which lead to high exchange dollar rate.
Even though some of them were not ready to run away, but
want their money in dollars to save their investments from devaluation, the
president gave a bad signal by banning deposit of foreign currency into
domiciliary accounts. That was enough for free market believers to see the
draconian handwriting on the wall, that was the beginning of dollar rush.
To make matters worse, the president came up with another
outrageous policy of rationing dollar to certain sectors and blocking many
sectors out. That was the nail in the coffin which facilitated the emergence of
free FALL.
In the end, foreign investors took over $80B out of the
economy within a short period and everything went down to free fall.
To those who believe it will be worse if Jonathan is still
there, you are all wrong. Policy continuity and political stability will not
let billions of dollars leave our shores within such tiny time frame. Even
though the government might have income shortage, the private sector will
weather the storm by their confidence in the market.
The fear of the unknown created by PMB is responsible for
the economic downturn not low oil price. Interest rate in America is currently
at 0.5% while it is 12% in Nigeria. JP Morgan Chase will not mind borrowing $50
billion from Feds at 0.5 and put in Nigeria for return of %2000 profit. Citi
bank will do the same, likewise US Bank Corp.
Chase gave Buhari warning about the repercussions of his
fixing policy before they pulled out, but his illiterate cyber warriors and
miss educated e-soldiers said JPMORGAN can go to hell, they no longer believe
in economic metrics since their messiah is in charge. Funny enough they are all
suffering today because of the stupid policy, but they find relief by blaming
it on past administration and Gucci appetite of average Nigerians.
For your information, if your president "kontunu"
with his unguided rhetoric, Naira will go down to N1000/1 $. But we thank God,
he is not longer talking.
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