Devaluation of Nigeria currency by 8.7 percent will affect many sectors of the economy particularly Refineries and power plants , Reason why? Refineries will use more dollars to buy crude oil @ the rate of 167 naira to one dollar and sell their products to Nigeria oil marketers with naira, which will make them loose more money. Power plants will have the same problem because they will buy gas with 167 naira to one dollar as well. As young Economists, i for see a big problem in Nigeria economy, particularly industrial sector which many industries will struggle to buy more dollars for buying foreign raw materials. Secondly i for see cost push inflation in Nigeria in the next few months, because many industries will have more production cost. Personally i wish crude oil price to drop to 20dpb to stop Nigeria over dependent on crude oil and make more ways for other sectors of economy to grow, it is time for Nigeria government to stop spending money like drunkard and concentrate on foreign reserved . . . . . ..........to be continue tomorrow.
Posted on: Mon, 01 Dec 2014 06:07:46 +0000
Trending Topics
Recently Viewed Topics
© 2015