Economics indices last week points to a gloomy half year for the Nigerian Economy. The stock market continues on a seemingly irreversible downward spiral dropping 1.57% last week and 3.27% year to date respectively. The All Share Index is already at a 9 month low of under 24,000.
The Naira has depreciated so bad a a point last week it traded at above N160 to the dollar in the parallel market. Despite its rise this week there are indications it may continue to nose dive as we move into the holiday season.
Inflation rate is still at double digits holding steady at 12.4% in May compared to 11.3% in the previous month. Consequently, 7 day interbank rates continues to hoover between 12% to 13%.
The situation is also not good for the banks who are mostly under his watch. In the wake of the banking crisis 3 years ago, the Banks which used to hold between 60% to 70% of market capitalization now collectively hold less than 30%. After more than 3 years of taking over the ‘distressed’ banks, they still remain under capitalized. All the merger talks have remained all talk with cloud of litigations hovering. So much that in his usual brash manner, he has set a deadline of September for the banks to finalize merger talks.
Amidst these bad news the CBN Governor cuts a seemingly unperturbed fellow concentrating more on installing the much criticized Islamic Banking. An argument can be made for him though, as the burden of ensuring economic benefits abound will typically fall in the hands of the Minister of Finance. But then Sanusi is solely in charge of all Micro-Economic policies which in effect affects the common man.
The economy is on a free fall as such we need affirmative action. Fragile economies require leaders with less brashness and noise. What we need is a leader with a clear focus and hands on understanding of the Nigerian economic landscape. Its time to let go of all the egotistical and ideological rantings. It’s time Nigerians relate words with action. Our economy is tanking and someone has got to fix it.
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