It is on record that when Emir Sanusi Lamido Sanusi was the Governor of the Central Bank of Nigeria, he had muted the idea of utilizing the Chinese Yuan as a currency option for international trade finance, without necessarily aligning with BRICS, or any trade blocs.
Those who opined that by joining BRICS, that there would be less pressure on the Naira. This assertion is not correct, as the value of a nation’s currency is not determined by the bloc it associates with, be it Bretton Woods, BRICS, MINT, G7, or G20. The strength or weakness of a currency is determined by economic factors and indicators, as espoused in basic economics of balance of payments among other considerations.
It amuses me when people reminisce about the time when the Naira was at par with the British Pound in the 1970s. During those years, Nigerians flocked to Oxford Street, in London, causing shop owners to prioritize their business with Nigerians. However, we must also consider the lack of productivity during that period, as we imported almost everything, from toilet paper to champagne, toothpicks, chicken, meat, bacon, and ham. The extravagance of those bygone days is what we are now paying the price for, and it is not solely the fault of the new government.
Moving forward, Nigerians must learn to live within their means. We must all be prepared to make sacrifices, regardless of our wealth or social status, including political office holders. They must set an example for others to follow. We need to adopt an austere and disciplined approach, and be less consuming and ostentatious.
NB: Mr Sonny Iroche can be reached on X (Twitter) @IrocheSonny
Email: [email protected]
