The skyrocketing exchange rate at the moment has constituted a major headache to the nation’s economy as dollar now goes for N306. And that has taken its toll on major businesses in the country.
Some entrepreneurs ENCOMIUM Weekly sought their views on this spoke on the effect of the high exchange rate on their various businesses. They also suggested workable solutions to save the economy of imminent collapse…
QUEEN AYO BALOGUN
The exchange rate is alarming and it’s really affecting every business, not only mine. Now, people are being conscious of the way they spend. And as the situation is right now, entertainment is secondary. So, that’s the area people like us are really affected. I keep wondering why things are like this, but if it’s going to be for the good of all in the long run, so be it. But government should not encourage further devaluation of the naira. I think, instead, Buhari should do something urgently to save the situation.
EVANS AKERE, Vanskere
Due to the high exchange rate, importation of fabrics and other materials are more expensive now. The Central Bank of Nigeria should release more Forex to banks, so that we can be able to buy BTA from them and not patronise the local bureau de change. Also, if they can increase the spending limits on ATM cards overseas, it will greatly help.
NGOZI OKEKE, Lynmaks Interior
It is having an adverse effect on my business. I am into interior designs. Most of the materials we use are imported. That has made the prices of everything to sky rocket. Clients don’t really understand. They still want to pay the same amount they paid last year, which is not possible. It will be running at a loss.
I believe the government can find a way round it. It is really discouraging.
Blume Jay Design
The high exchange rate has affected my business in a very negative way. The prices of goods have escalated making consumers unable to conveniently buy items needed thereby making business very dull and returns on investment slow
Government should create avenues to enable manufacturing possible. That will reduce the pressure on imported items making locally produced good more and readily affordable.
We are brand ambassadors of the kingdom of God, we don’t operate on this economy. Even if the exchange rate is higher than it is, it won’t affect me. But I feel the pains of the people, especially those who deal in business interests that involve the dollar. It’s so unfortunate. God allows our own business to thrive regardless of what is happening.
This problem is not an unusual one. We behave as if we’re dealing with a disease that has no cure. There are economic guidelines to deal with such things, why we’re not implementing them is beyond me. Even a layman like me knows that we consume what we don’t produce and produce what we don’t consume. We keep importing everything. If we, for instance, produce a world-renowned made in Nigeria car, how does the dollar rate affect its price? We know what to do, we just don’t do them. There are short term, medium term and long term measures to resolve this.
Team I see U Clothing
Yes, the exchange rate has affected business. The cost of materials is on the high side and customers will not understand when you charge them high in order to make little profit.
President Buhari needs to reduce the cost of governance by 50 percent. Also, government agencies that are critical to revenue generation such as Nigerian National Petroleum Corporation, Nigerian Customs Service, Federal Inland Revenue Service, Nigeria Maritime Administration and Safety Agency, Nigeria Liquefied Natural Gas, Nigerian Ports Authority should be audited, regulated, revamped and have improved oversight. This will ensure that corruption which pervades these agencies is curbed and all the money generated is adequately accounted for.
There is no way high exchange rate will not consistently affect our kind of business so far most of the products we deal in are foreign. Most of the suppliers we’re dealing with have equally inflated the prices of their products because the exchange rate is also affecting them, even directly. So, it makes sales to be on the low side now because we also need to jack up the prices of our services and the items that go with such services. We only pray government doesn’t think of any further devaluation of the naira so that things won’t get out of hand totally.
Cakes by Lonpe
Yes, the high exchange rate as affected my business.. Due to the high exchange rate, virtually all ingredients in cake making as increased by 25 percent. I think the government should empower more of homemade products so we think less of importing.