Blog entry by Ifiok Udongwo

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by Ifiok Udongwo - Thursday, 13 August 2020, 5:36 PM
Anyone in the world
If we all search deeply the rise in the FX rates offers an opportunity for each one of us. For some, it might be more obvious than others. For example, I believe this is the best time for the sales force to compete against foreign competition. 
Companies need to take advantage of these rates; they are for the rising and falling of many ;)

That being said, all those in favor of devaluation say, "aye"! 
If we take Ghana or any other African country that devalued its currency as an example, we realize that devaluation is not necessarily a fix, even in the short term. It creates a mirage of economic stability and it is only a matter of time before it all blows off.
Devaluation boost growth based on economies of scale for exporting countries. What are we exporting?? Oil? Lol
It also increases the cost of importation, meaning we have to use local substitutes. How many functional industries do we have?? Oil? Lol
If we must do this, we have to be ready to produce sufficiently for local consumption and exportation? Are we really ready? No

Given the government that we have in Nigeria, I would recommend that we have a very transparent recession and grow out of it organically (or not smile). I have learned that Nigeria capitalists are quick to respond when these things affect them directly.
Really there is nothing wrong with building an economy on debt... especially if you are building.  So as we plunge into indebtedness as a nation, our government must be ready to build.  Are they ready?