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…
AJIBOLA OWOLABI, Ido Arts
The cost of materials is higher due to exchange rate of our currency to foreign currencies. Now, cost of production is higher but we are scared to increase our charges.
I think if we can be more productive here, within the country, it will help because there will be no need to concentrate optimal attention to foreign currency since all our production materials are from within.
HALIMA KADO , Exquisite outfits
It has affected in the areas of getting materials to produce new designs for clients and giving prices for my outfits. It’s really having effect on patronage, but for us, satisfying our loyal customers is paramount, for that reason, we squeeze to give the best prices in the industry.
Government should encourage importers of essential raw materials to avoid a situation where few people take advantage of this situation to exploit the masses. Government has said this is to encourage local production but it has to be gradual so it does not bite too hard on the vulnerable.
The exchange rate at the moment has really destabilized everything in the country. Everybody is confused now. Businesses are not moving, everything has been stagnated by the skyrocketing exchange rate. I deal mostly in foreign goods, and with the rate naira is going now to the dollar and pound, it’s very difficult to import wears and other items.
And if you struggle to bring in anything at all, customers find it difficult to pay because of the level of poverty in the land right now. Most people shun expensive goods now. They prefer something cheap and affordable. I think President Buhari should just do everything possible to ensure that the economy is stable by working on the exchange rate in favour of the naira. We can’t continue this way. And something urgent must be done before the whole thing gets out of control. Government should encourage any economic activity that will gear up the economy so that there will be much money in circulation and business will begin to flow again in the country.
MOON OBI, Moon Shine Beauty Place
The skyrocketing exchange rate has really affected my business and is still affecting it negatively for that matter. Patronage is so poor at the moment. Prices of goods are so high that I can barely stock my shop, and my customers keep complaining about hike in prices of goods.Everything is because of the alarming exchange rate which has almost crippled every business in the country. Imagine now, a US dollar going for as high as N325 and British pound is now as high as N420. It’s worrisome.
Anyway, I will suggest the government should embark on the production of goods and strengthen her quest for diversification, especially agriculture so that we can start exporting and reduce importation of every single commodity.
Also, the government should try to revive other solid minerals because Nigeria is blessed with so much natural resources which the previous governments have neglected because of oil. The energy sector should be given urgent attention. The government should restore the faith of Nigerians in the energy sector so that the economy well be boasted! Left to me, government should do everything to stabilize exchange rate and say no to further devaluation of the naira.
ATINUKE OLUWAYEMI,, Saint Andrew Pharmacy
Yes, I have a pharmacy and we all know that not all drugs are produced in Nigeria, so the imported ones are really expensive now due to the high exchange rate. The government should do its best to invest in other areas of the economy, this will help boost the dying economy.
BISI ADEEKO, Bisiano
Yes, I travel out to buy goods. I can’t even travel now because I would need a lot of money. The government should see into the matter.
MICHAEL TOCHUKWU, Asandrea Collections
It is really affecting business. What we used to import at N1500 from Italy, now goes for N2500. And you know, customers will not want to understand the situation of things. When you tell them that the exchange rate is the reason things are more expensive, they won’t understand. Everybody is suffering, nobody wants to spend more.
I believe economic experts have advised the president on the best options. The exchange rate is what is bringing this hardship to Nigerians and it’s affecting everything. For instance, if Mr A is okay, he can bless Mr B, and Mr B can in turn bless Mr C. It is only when someone has fed his family that he can think of sewing clothes.
But in a situation where you’re looking for money to feed yourself and your family, you won’t even mind going around in rags. We’re praying that the change will affect all the sectors in Nigeria.
LATEEF OMOTOSHO, Tosho
It is not friendly. The dollar rate is increasing daily. So, when you’re buying something you have to include that in your price. The rate is not stable, it changes everyday – yesterday it was N320, today it’s N325, tomorrow it could be N330. Even to get foreign exchange from the banks is a problem.
Summarily, there’s hyper inflation now. For instance, newsprint, the material used to produce newspapers and magazines, last week we supplied it at N185,000 today it’s for N210,000. Possibly, in two weeks, it’ll be as high as N220 or even N230.