It is said that a low rate for the national currency will attract more forex as those abroad seek to maximize their advantage to get more value in Naira for their money. That ordinarily should attract more foreign investment. The flip side is that after production, you have to sell in Naira, except you produce for export. Your sales income in Naira may not cover the investment in Dollars.
Therefore, if you are investing in the Nigerian economy of today, you have to target the foreign market. Who would do that? Who wouldn’t choose to target the foreign market from his own base?
The answer for Nigeria is to create an environment that is conducive and safe for foreign investors to come in and set up plants in Nigeria to service foreign markets for the reason that, due to the low value of the Naira, labour and other local costs would be cheaper to give them an overall advantage of producing cheaper than their counterparts in other countries.
Can we achieve this? It requires the creation of a disciplined society in all ramifications.
Published by Chuks Nwachuku
