Forex supply, the case of discipline and the Nigerian economy

Let me state it very clear that I am not exactly the number one fan of this present regime, but daily I remain gracious with its policies especially as it concerns forex supply and the controls they have put in place.

This issue is very simple and straight forward, we are not earning as much as we are spending, hence the need to step up controls to keep the demand in check. Nigerians especially this generation have grown to like the frivolities that come with temporary wealth. We prefer all sort of foreign goods and lifestyles which continue to constitute a serious drain on the country’s revenue base. If left alone, we would be stark naked in a matter of days,

Lifestyle wastefulness to me is the bane of our economic problems. From the earning side of the platform, Nigerians don’t want to do the menial jobs that would boost productivity and shore up export earnings. Agriculture, local industry are all looked down upon by our elite who wallow in ‘faux elitism’, cavorting in Neroistic opulence at the expense of the majority of Nigerians.

As the Petro dollar dries up, one would think that the silliness will abate but reverse is the case. Now the tempo of the craziness is on overdrive. Everybody is looking forward to a foreign education for their children, foreign cars, foreign clothes, foreign hair and all what not. As the exchange rate plummets in favour of other currencies,  the importance of China emerges.

Since most of us can no longer afford the luxury goods we so much crave for from Europe and the Americas, we look towards China for their replica we consider cheaper forgetting that it is the same dollar that is being spent. This has forced the government to look towards China for salvation.

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This is like a case of a stubborn favourite child who has insisted on a toy the father can ill afford. The father knowing that if he got the toy, other very important things would suffer. He must as a matter of compulsion put his foot down and insist on the right thing to do. The child in his usual spoilt manner would throw all sort of tantrums but this must be withstood knowing fully well that by not buying the toy the right step has been taken.

This takes me now to the freedom that comes with a free economy and its limiting features especially with a government that is bent on reducing expansionary expenditure. The CBN controls have met with all sort of protests both local and international. The internationals whose economies will suffer have insisted on less controls and have even offered more loans so that we can keep buying and spending. The locals seeing their lifestyle being hampered have joined the internationals in screaming. But as I see it, this is just the height of elitist selfishness, preferring their faux lifestyles which cannot even be compared to the average middle class standards abroad to a spartan sacrifice so that future generations can live better.

Since we have refused to be disciplined or curb our destructive tendencies, the government is certainly right to place bans and embargoes on all these irrelevant things while leaving the windows open for productive endeavors. But even this opens up the issue of round tripping. This is where legitimate businesses collect forex at official rates and turn around to sell it off at the black market at very profitable margins. You see why the war against indiscipline must be rejuvenated and brought back.

Discipline must be enforced. Nigerians must suffer today for tomorrow and government should have the strong political will to enforce all its rightfully thought out policies putting itself in a strong position to punish errant and recalcitrant citizens who would rather break the rules than ‘suffer’.

It is a game of demand and supply and as long as the demand keeps this present momentous upward swing, the Naira will continue to suffer at the exchange market.

Let’s think o.

 

 

 

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