By Isah Aliyu Chiroma
In beginning this letter, we are perfectly aware of the situations, but what matters is finding solutions that will work for us. We have been resilient, with a tiny spark of hope hidden somewhere inside us, which cannot die, but is torturing us horribly, all the odds are against us.
I suppose that we should be honest, before going forward, admit that we are facing difficult challenges in our nation. People are going through hard times; we all are, as we can see from our faces. But is this how the renewed hope journey will continue, or is it that the government is blind and deaf, can’t hear the cries of its citizens. Those thoughts weighed heavily on our mind as the situation enfolds, becoming worse.
Nigeria is now dealing with difficult economic conditions characterized by rising living expenses and inflation. These economic difficulties have a wide-ranging effect on people, companies, and the nation’s general socioeconomic structure.
Inflation is one of the main causes of the current economic problems. The persistent rise in the average cost of goods and services, the overabundance of money supply, interruptions in the supply chain. Those factors combined together, form the present situation of uneasiness.
Due to our heavy reliance on imports, the economy is susceptible to changes in the value of the currency. A weak local currency resulting to increased import costs, which fuel inflationary pressures. This is generally caused by external reasons like changes in the price of oil globally.
Nigeria has always been vulnerable to the volatility of the world’s oil markets due to our overreliance on oil exports. The economy’s inability to diversify considerably has made it more susceptible to outside shocks, which has an effect on income creation and overall economic stability.
The cost of necessities has increased, which is the most obvious effect of inflation and a declining currency. It is difficult for the typical Nigerian to sustain a minimal quality of living due to rising costs for everything, most importantly food.
During difficult times like this, businesses—small and medium-sized enterprises (SMEs) face a variety of difficulties. Production prices rising, consumer spending declining, and credit availability issues can result in business closures, employment losses, and a general slowdown in economic activity. It may become more difficult for the most vulnerable people in society, such as low-income families, to provide for their fundamental requirements, including housing, healthcare, and education.
The economy needs to be diversified as quickly as possible. Putting money into industries like manufacturing, technology, and agriculture, this will help in building a more stable and well-rounded economy. Import dependency can be decreased and food security increased by practicing agriculture. Crucial actions include putting policies in place and design a program that will assist regional farmers, enhancing infrastructure, and providing incentives to agribusinesses.
To reduce inflation, the Central Bank of Nigeria (CBN) and other pertinent authorities must put into place efficient fiscal and monetary policies. These could involve controlling the money supply, changing interest rates, and implementing exchange rate stabilization policies.
Working together, the public and private sectors can promote economic activity by lowering bureaucratic barriers, creating regulations that attract private investment, and creating an atmosphere that supports the expansion of businesses.
Transportation, energy, and technology-related infrastructure investments can raise overall economic efficiency. This will lowers expenses, streamlines corporate operations, and draws in both local and foreign capital. The country is at a turning point that offers a chance to enact meaningful changes that promote resilience, inclusivity, and economic stability.
A comprehensive strategy that incorporates both long-term structural reforms and short-term measures is needed to address the high cost of living and inflation. Nigeria can create a stronger, more robust economic base by enacting efficient fiscal and monetary policies, diversifying the economy, and bolstering important industries.
Although the current economic obstacles are undoubtedly formidable, they also provide Nigeria the chance to start a revolutionary journey that will lead to a more diverse, inclusive, and resilient economy. If we really mean business, we can put strategic plans into action, which will guarantee a better future for the citizens.
