The Nigerian Naira Ranks As One Of The Worst-performing Currencies in Africa | 5 Things That Should Matter Today
In a tragic turn of events, the untimely death of 19-year-old Nigerian student Afolabi Stephen in Canada has sparked outrage across Nigeria. The news of Stephen’s demise, allegedly at the hands of Canadian police officers, paints a grim picture of racism and cruelty towards a young black Nigerian. Abike Dabiri-Erewa, the Chairman and CEO of the Nigerians in Diaspora Commission (NiDCOM), has voiced her condemnation of the heinous act and vowed to ensure justice is served.
In other news, Nigeria’s electricity industry is facing a dire situation as the federal government reveals that the sector requires new investors to inject much-needed capital. With a staggering shortage of $2.5 billion, the electricity firms are in urgent need of reorganization and recapitalization. Olu Verheijen, an adviser to Bola Tinubu on energy, has called for new policies that will facilitate the entry of new partners and investors, as the current companies are burdened with over-leveraging and under-capitalization.
The Nigerian Automotive Design and Development Council (NADDC) has put forward a proposal to ban the importation of used vehicles over two decades old. This suggestion aims to prevent Nigeria from becoming a dumping ground for old cars while encouraging the growth of the local automotive manufacturing industry. Joseph Osaniyin, the Director-General of NADDC, stressed the importance of collaborating with relevant parties to enforce age limits on imported vehicles and establish minimum standards for imported cars.
President Bola Tinubu’s extension of free train rides for Nigerians has drawn to a close after three additional days were added, making the complimentary rides available until January 7. The Nigerian Railway Corporation (NRC) initially announced the free train rides on December 21, 2023, following the president’s initiative to alleviate transportation costs for Nigerians traveling to their hometowns during the holiday season.
In a concerning development, the Nigerian Naira has been listed as one of Africa’s worst-performing currencies in 2023. The currency experienced a significant fall of 55%, with its exchange rate surpassing ₦1,000/$ for the first time in history. This decline in value is primarily attributed to the Central Bank of Nigeria’s decision to allow the Naira to float freely, resulting in a substantial depreciation.
It is crucial for Nigerians to stay informed about these five important news stories that have gripped the nation. The tragic death of Afolabi Stephen highlights the need to address issues of racism and injustice not only within Nigeria but also worldwide. The electricity industry’s call for new investors emphasizes the urgency of revitalizing the sector for sustainable growth. The NADDC’s proposal to ban the importation of older vehicles aims to promote local manufacturing and prevent Nigeria from becoming a dumping ground for outdated automobiles. While President Bola Tinubu’s extension of free train rides has provided temporary relief to Nigerians during the holiday season, the future of the country’s transportation system remains a pressing concern. Lastly, the alarming performance of the Naira necessitates a careful examination of the factors contributing to its decline.
As Nigerians navigate these significant developments, it is essential to foster a society that values equity, economic growth, and the well-being of its citizens.
