Monday mornings signifies an end to a jolly weekend and are also usually known for their painful reminder of a busy week ahead.
Today has been as eventful as you can imagine. It’s been danger everywhere. On the radio airwaves, tv, newspapers and social network. From discourse on whether Siasia should be sacked or not, to the governors facing trial today. Or is it Pengason serving a one day warning strike. PHCN also announced that the much improved power will drop for a week, causing a nationwide blackout. Reason is as a result of shut down in gas supplies. But the one that’s catching the headlines is the economic doom and loom.
The dollar is currently on a free fall as it hit N162 to the dollar at the parallel market on Sunday (9th of October 2011). It was N154 last Monday (3rd of October). This has sent jitters down the spine if everyone as people wonder what other uncertainties lie ahead. To add salt to the injury, the government just announced the recent drop in oil price is set to cost the government $28b in revenue shortfalls. Add that to the government’s resolve to remove fuel subsidy then you realize it’s been one hell of a day already.
The impact if all of this on the collective psyche of Nigerians is difficult to say for now but it surely won’t be good. Analyst believe the devaluation of the Naira will usher in inflation and ultimately rise in cost of goods and services. They have recommended hikes in MPR (rate at which banks borrow from the CBN) to about 10.25%, a 1% increase. This for sure will discourage borrowing and drive up borrowing cost for businesses and individuals who have car loans, personal loans, mortgages etc.
Its a tough Monday guys, but heck, we have been here before haven’t we? Lets hope its ends as usual…..with life continuing as “normal”.
