Voice of Emancipation: Who Will Save the Falling Naira?

By Kayode Emola

It would be a profound understatement to say that the dwindling fortunes of people living in Nigeria is concerning. A country that had the fastest-growing economy in the 1960s is now classed as the poverty capital of the world. Instead of people sitting down to look for a viable solution, they look only to elections and which criminal politicians they will elect.

In the 1970s, when Nigeria was productive, the Naira was double the US Dollar and a little higher than the British Pound. In 2023, a mere 50 years later, both Pounds Sterling and the US Dollar are a thousand times stronger than the Naira. If this statistic does not worry the intellectuals and provoke the masses to action, then we will end up sitting on our hands until the Naira has gone the same way as the Zimbabwean Dollar, to utter destruction.

Zimbabwe, which boasted of a highly intellectual population, saw its currency destroyed when hyperinflation forced it to redenominate. Between 1980 and 2009, there were three massive redenomination events in an attempt to control the skyrocketing inflation. As a result, 100 *trillion* Zimbabwean Dollars became worth only 40 U.S cents, forcing the country to officially adopt the use of currencies like the Chinese Yuan, U.S. dollar, and British Pounds, just to mention a few.

I know people in Nigeria would say “God forbid”, that what happened in Zimbabwe can never happen to Nigeria. But it behooves us to remember that Zimbabwe is not alone: Venezuela also suffered similar crises of hyperinflation, forcing it to change its currency three times.

In Nigeria, the inflation figures are not accurately reported, causing the people to be unaware of the real dangers that they face. When four tomatoes that cost ₦200 a year ago now cost over ₦1,000, it gives lie to the claim that inflation is only at 20%. The example of the tomatoes alone puts inflation at 500%, suggesting that the reported figures are merely a smokescreen to stop the people from revolting.

In the 10 years from 2012 to 2022, the Naira has lost its value by more than 700%: from an exchange rate of around $1 to ₦135 in 2012, it is now at $1 to ₦1,000 and falling rapidly. In 2023 alone, the currency has fallen by more than 50% against the U.S. dollar. In early 2023, it was exchanging at around $1:₦460 at the official rate –around $1:₦600 on the parallel market; whereas today, the official rate is around $1:₦790, with the parallel market exchanging at $1:₦1,000.

This is clearly unsustainable for the general populace, given that the Naira shows no sign of slowing its descent. Both history and its current trajectory suggest that the worst is yet to come. Every economic indicator in the country shows that it is heading in the wrong direction. The foreign reserve that we were led to believe was around $60 billion has been revealed to have only around $3 billion; no thanks to the most recent ex-Governor of CBN, Godwin Emefiele, who opened the treasury for the wolves to feast on it.

If truth be told, we Yoruba have existed in this farce called Nigeria for too long, which is why our fortune has eluded us. To correct this turpitude, the only solution is Yoruba independence. However, we must ensure that whilst we are pursuing this dream, we also begin putting mechanisms in place to safeguard our children’s futures.

We must realise that the Naira is beyond redemption. Currency redenomination is not the answer, as it is a very expensive means of addressing leadership failures. Therefore, we must begin to create our own financial system independent of Nigeria. Creating our own blockchain currency would be able to stand the test of time without being devalued by political whim. We must embrace this technology that will help us to advance the cause of independence, protecting our people from being left out in the cold.

As we march on toward our independent Yoruba nation, may I use this opportunity to reassure our people that victory is certain, though it may take a little time. However, we are far closer to our destination than from where we started, so we must not surrender at this eleventh hour. It is only those who quit that have lost the battle; since we are no quitters, by the Grace of God we will overcome all the challenges ahead of us to reach the victory.