Tekedia Institute
Tekedia Institute
May 21, 2025 at 05:29 PM
I stumbled on Nairametrics recent LinkedIn post titled "This is why your Naira can’t breathe" The post highlighted that despite many Nigerians earning and spending in Naira, they still feel the heat of the dollar–Naira exchange rate. At first glance, some may say, “I live in Nigeria, earn in Naira, so why should the dollar affect me?” My brother(in Sarki Mota Autos voice) It’s not about living in America or Nigeria. It’s about how Nigeria economic trade connect to the dollar. Whether you agree or disagree, until Nigeria transforms its industrial base and starts focusing on powering factories, enabling efficient warehouses, and reducing import reliance — the dollar’s fluctuations will continue to send shockwaves through the economy, impacting prices, businesses, and households alike. My professor, Ndubuisi Ekekwe once wrote that "the strength of the Naira comes not from Central Bank but from real economic production — factories making goods, warehouses holding local products." Simply, the more we produce locally, the less the dollarization of the Nigeria economy. Every time a factory shuts down in Nigeria, it means fewer goods are produced locally, more imports flood the market, and more dollars are demanded. This creates pressure on our currency. The Naira gasps for breath because the source of its oxygen — local production — is choked. Many see warehouses as mere storage spaces, but they are in fact the vaults of economic strength. Warehouses that hold locally produced goods represent tangible value that backs the Naira. A warehouse full of locally manufactured goods reduces import demand, and sustains the currency’s value. When warehouses lie empty or are stocked only with imported goods, it signals weakness which is bad for our economy. To make the Naira breathe, Nigeria must power factories and make warehouses functional by ensuring goods produced in our factories reach the market efficiently. These warehouses are not just spaces; they are the frontline of our currency’s resilience.
Image from Tekedia Institute: I stumbled on Nairametrics recent LinkedIn post titled "This is why yo...
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