There is need for constant regulating economy of the nation in order to retain its original financial and production valuation. Using Nigeria as a case study in achieving this process is a scope of economic survey on demand and supply as well as the monetary valuation as a resource purchasing power to meet demand.
First, is starting the regulation from the point of
circulation of money, there is need for Central Bank of Nigeria (CBN) to
constantly impose measures to commercial bank on how to regulate the
circulation of Money as this sometimes leads to monetary depreciation because
when the quantity of money in circulation as liquidity is much, the abuse of
money is inevitable. This is why the stated laws of minimum transfer for
individuals and corporate bodies are stipulated from CBN to commercial bank to
be not more the N6,000,000.00 for individuals and N10,000,000.00 for corporate
personalities.
Secondly, still on regulation of circulation of
money is the need to revaluate the financial salary schemes of Civil servants
which is the major sector that determines the valid or invalid economy. For
instance, we all know that the Naira value has depreciated so much to compare to
its foreign currencies equivalent to the extent that the 1 USD is within the
range of N400.00 (Four Hundred Naira) to prove that there is drastically
depreciation in Monetary value. And the Whole sector of economy in Nigeria,
both the banking sectors and the Federal government insurance sectors as well
as production sectors are working very hard to fix these disabilities in the
economy.
Now the question remains “How can we achieve it?
Now, starting with the scheme revaluation. The federal government had made
effort to make an increment in worker’s salary as a measure to ameliorate the
puzzling issue, but that does not solve it, rather, it created another problem that the quantity of
money in circulation to meet worker’s demand is so much, thereby leading to
depreciation in Naira value to it’s foreign currencies like Dollar, Pounds and
Euro. So this is not the major way to settle this issue.
On the other hand, trying to increase the supplies
in our industrial, companies and agricultural sectors I deem is one of the major
way to regulate this problem, Why? Because this is the only way to control
inflation. Inflation means high price or increase in prices of commodities.
This is because when there is increase in supplies of quantities of
commodities, there will be competition
in market prices, even if demand is less. And when the producers are struggling
to sell their commodities, they will be forced to reduce the prices so that it
can be marketable and the fall in price is what is called deflation. Now, when
the prices of those commodities deflate or reduce. The low income earners like
civil servants can be able to meet up with their demands on products with their
minimum wages. Though, the demand will be high on the sides of the civil
servants because every commodity is now cheap.
But still on this, is the need to regulate or
control illegal hoard of some products by the greedy citizens especially
petroleum products like Petrol (PMS), Diesel (AGO) and Kerosene (DPK) for
future black market when the product become scarce, as these activities also
help to cause inflation and scarcity of Crude oil productin our economy. The
mind set of expecting scarcities should be dealt with and eradicated in our
economy by focusing on those illegally hoards of petroleum products underground
reservoir expecting scarcity, especially
in the river line areas like Delta, Bayelsa, Port Harcourt and Cross River/
Akwaibom.
Again, is the need for the Standard Organization of
Nigeria (SON) to be up keeping in
monitoring the prices of Nigerian Made commodities in circulation, to make sure
they retain their original marketing values. As neglecting this activities will
lead to unexpected inflation in commodity. Though in the recent time, their
efforts to phase out substandard product and foreign imported products as a
measure to encourage locally production
is well recognized and appreciated but they still need to advance to a level of
revaluating marketable commodities prices as well as deploying sanction on those
that infuriate the standard prices of commodities, especially on the retail
sales levels. These measures will also help to regulate the economy so that
there will not be increase in prices leading to insufficient income of civil
servants to meet their demands, because when there is high in prices of
commodities or inflation in prices. The Civil servants will begin to lament and
complain for an increment in their salaries so that they can be able to meet their needs. But that does not solve
the problem, it will only lead to continues increment year to year if the above
measures are not deployed and taken into control. And continues increment will
end up causing much quantity of money in circulation known as money laundering ,
whereby one will use large amount of money to meet His/her specific need, using
large sum of Naira to pay for simple serves or products. This is when we conclude that Naira has lost its
value. So to bring Naira to it’s normal
standard, let us start from production and supplies. Especially in Agricultural
and Natural Resources like Crude Oil and Mining because this is the major
sector that control every other economy. The production companies derives their
raw materials mainly from these two sectors.
Natural
resources like Lime stone, Crude oil, Coal mining etc. and Agricultural sectors
like Fish Farming (Aquaculture), Poultry, Animal husbandry, cash crops
production and cereal production. So when
the raw materials for all these are very cheap companies to purchase, for
their production, it will lessen the production expenditure or overhead which
will also determine their prices of the produced commodities. And it is good
for companies to fix their retailing prices of their produced commodities on
the labeling and packaging materials like bottles, Can, Crates etc. so that it
will be easy for retailers to access and
sale their products to public.
Still on regulating our economy to a better standard is the need
for digitization of economy which the trends for development is on ground in Nigeria
already. The digitization of the economy simply means the transformation of
manually execution of task to adoption of automatic standard of execution
whereby all manually system of labour
are made simple, easy and less stressful by deploying automation system.
Example, the system of haulage in industries and production companies are no
more by hum efforts or man power or
automotive movement but by simply construction of mechanisms that are being
manipulated with automatic panels. So
the easiest thing abut this system is that only one person can do a Job of 10
persons, just by sitting down to monitor and direct the mechanism with
sophisticated electronic panels or keyboard as well as remote gadgets. The
advantage about this system is that it reduces division of labour as well as
overheads or expenditure cost in production or manufacturing and it yields
large quantity production of goods within short period of time like daily
production, weekly, monthly and annually production. To compare it with when
the system are done manually with human efforts and automobile efforts.
When the system are deployed in Agriculture, it harvest
large quantities of products daily and weekly to compare with human effort
labor force causing unemployment as expertise are demanded in skills. But it
will boost the economy to a level that the unemployed citizens will have a
scheme to survive even in the midst of scarcity. This is why Nigeria today is
deploying what is called “N-POWER SCHEME” in connection with the ministry of
humanitarian affairs to equip and meet the needs of indigent citizens in
Nigeria by registering their data on the database of Federal government. Now,
with this system, of data collection, I think that what is obtainable in Western
world like United Statate and Europe will be actualized in our country, whereby the unemployed and
indigent citizens are well paid monthly from Social Amenity budgets. Just by
registering, their citizens obtain their social security number, that qualifies
them for these payments.
I think with
these measures, we can be able to regulate and bring back our economy to a
better standard as well as regulate our Naira value to meet up with its foreign
counterparts.
Long live Nigerian Economy, Long lives Federal
Republic of Nigeria.
Written by
ONYIA EMEKA
HEATH
(08186388641)
No comments:
Post a Comment