Home Opinion New Wine in Old Wineskins: Buhari Unveils the 4th Worst Currency in Africa

New Wine in Old Wineskins: Buhari Unveils the 4th Worst Currency in Africa

by Isiyaku Ahmed
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New Wine in Old Wineskins

By Emmanuel Gandu

President Muhammadu Buhari on Wednesday unveiled new Naira notes for Nigeria.

According to Central Bank Governor Godwin Emefiele, the new banknotes are already in circulation from today.

Naira is the weakest currency in Africa

The introduction of the newly designed banknotes is coming at a time when the value of the Naira has depreciated to its lowest ebb ever in the history of Nigeria.

The Nigerian currency occupies the 4th worst position in Africa.

Of the top seven (7) worst-performing currencies in Africa in 2022, Nigeria’s Naira occupies the 4th position.

According to Hanke’s Currency Watchlist computed by Steve H. Hanke of John Hopkins University, the study shows the ranking order of Inflation rates and devaluation of national currencies.

This listing shows the worst national currency from top to bottom beginning from the worst at number one.

This list includes:

1. Zimbabwe – Dollar – 97.33% depreciation

2. Sudan – Pound – 84.95% depreciation

3. South Sudan – Pound – 50.79%

4. Nigeria – Naira – 48.87% depreciation

5. Ghana – Cedis – 42.57% depreciation

6. Malawi – Kwacha – 39.54% depreciation

7. Sierra Leone – Leone – 31.23% depreciation

Consequences

(a) For Nigeria’s Naira to struggle, depreciate, and thus be brought so low as to be grouped with some of the poorest countries in Africa leaves much to be desired.

(b) Little wonder, 96% of Nigeria’s earned oil revenue is spent on debt servicing alone – according to National Planning and Budget Minister Zainab Ahmed, the borrowing spree remains unending.

(c) With Nigeria’s debt stock hitting up to N42.56 trillion as of the 4th quarter of 2022, with an absence of exportation due to a low level of local production, with a high level of consumption of imported goods, etc, surely, devaluation and high inflation rates will have to lead to depreciation of the Naira.

(d) Consequently, as Nigeria faces a bleak and gloomy future, a recession is therefore the ultimate outcome.

It, therefore, remains to be seen whether the newly designed Naira notes will improve the worsening and depreciating face of the Nigerian currency or not.

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