A Public Affairs Analyst and a contemporary writer who also happens to be a Blogger, Sani Michael Omakoji ( SMO), has said, the value of Naira is expected to appreciate as Nigerian Election for 2023 begins.
Sani Michael Omakoji, who is also a trained Business Expert, made the projection on Thursday being 29th September 2022 while reacting to the position of foreign exchange as Nigerian 2023 general election kick-started.
Sani Michael Omakoji, differs in opinion to many Business/ Economic Experts who have projected that Naira will further depreciate in value as 2023 election campaign season begins.
Let us read Sani Michael Omakoji ‘s apt analysis:
“I have read lately that the value of Naira will further depreciate if all things being equal ( cateris paribus ) as 2023 Nigerian election campaign starts on Wednesday being 28th September 2023.
These some Business/Economic Analysts align their projection to “cateris paribus”, there will be more demand for dollar to do chopping & logistics.
In my own opinion, this projection is wrong as its colloquial view that ” all things will be equal ” ( Cateris Paribu ), is not always correct!
Nothing has ever been certain in this life as life itself is not even certain hence, to project that the value of Naira base on the Latin phrase, “Cateris Paribus ” is no longer acceptable in this 21st century Economy.
Contrarily, I expect the value of Naira to appreciate more against other hard currencies as politicians who control 75% of Nigerian Economy are going to travel less overseas as they rather prefer to stay and campaign in Nigeria and also plan the outcome of 2023 general elections.
And as such, there is going to be more demand for Naira and less demand for hard currencies.
Now, what would happen if there is more demand for Naira and less demand for hard currencies?
Common sense in foreign exchange interpretation is that, even though all things are not always equal, ‘the value of Naira will appreciate while that of hard currencies will either maintain constant value or depreciate in value’.
If not for the ‘dollarization’ of Nigerian Economy, and the status quo of Nigeria being a consumer Nation, this is the best of time to crash the value of hard currencies.
Make a law that both local and international companies operating in Nigeria, must do their transaction in NAIRA.
By so doing, there is this high level of certainty that the pressure on the demand for hard currencies would be minimal, and the multiplier effect is that, there will be high demand for Naira by both local and foreign companies that will eventually add up to the value of Naira.
Well, ‘dollarization’ and “Nigeria as a Consumer Nation” are two topics I have written about before, but because of the nature of Nigerian Economy as it is now, I will talk about them again and again …”
You can follow Sani Michael Omakoji on his twitter @Omakogi1 LinkedIn/Facebook @SaniMichaelOmakoji