Nigeria is in a pure stagflation - high inflation accompanied by stagnant growth, recession and high unemployment. In March, fuel sold at N300, which was more than 300% above its normal price, the Bureau of Statistics reported a 12.8% inflation. In April, the cost of staple food, like garri, tomatoes etc, increased by 200%, the agency announced a 13.7% inflation rate. We must take cognisance of the fact that the cost of fuel, affects the prices of everything in Nigeria.
Now going by the new official increase in the price of PMS, inflation will definitely increase to a higher percentage which will surely push the CBN to increase the interest rate above the inflation rate. And if this is done, financial transactions will more difficult for individual and collective local and foreign investors, and as a result more people will go jobless in Nigeria, as more companies will be forced to shut down.
Read also:NIGERIA FACES MORE OIL DOOM FOLLOWING NEW PUMP PRICE HIKE
Now, the root cause of this economic crisis is obvious to everyone in Nigeria and the world at large. The owners of the oil rich land wants self-determination, they do not want to be one with Nigeria anymore, they want to govern themselves and be in total control of their natural resources.
They have demanded just two things from Muhammadu Buhari and his government for peace to reign; (1) the unconditional release of the leader of the Indigenous People of Biafra (IPOB), director of Radio Biafra and Biafra TV, Nnamdi Kanu, as earlier ordered by the court and (2) a separate state of Biafra.
About five major oil pipe lines has been blown up since February, by the Niger Delta militants, thereby frustrating the operations of the oil companies in Nigeria and has drastically reduced the output of crude oil below 1.4 million barrels per day, and power generation below 2,000 megawatts, and it worsens by the day.
Read also:NIGERIA'S ECONOMY HEADING ON A COLLISION COURSE...INVESTORS BEWARE
Muhammadu Buhari, instead of listening to the demand of these people for the sake of peace, has resorted to using his military might to fight a people who are fighting for their right. By this action, I have come to a conclusion that Muhammadu Buhari is not even a fan of one Nigeria that he claimed to fight for with everything within his power. If Muhammadu Buhari really wants peace for his country, he will listen and do the needful and stop pretending as though he does not know the root cause of the economic crisis.
My candid advice to the US, Britain, Italy, France and other foreign investors in Nigeria is; if they want to continue doing businesses in Nigeria, they should persuade Muhammadu Buhari to do the needful: free Nnamdi Kanu and free Biafra. Without which, I doubt the existence of Nigeria in the nearest future let alone its economy.
Written By Chijindu Benjamin Ukah
Edited By Uche Nwosu
Published By Nwosu C.S
For Biafra Writers