FOREIGN EXCHANGE REGIME AND THE NIGERIAN ECONOMY: THE DILEMMA OF ECONOMIC RECESSION, 2014-2017

Pine Atah, Edwin Ochoga Ochoga

Abstract


The paper did a Neo-Marxist critique of the impact of foreign exchange regime on Nigerian economy with focus on the current economic recession. The paper especially looked at the extent to which the foreign exchange rate championed by the agents of financial globalization had worsened the escalating incidence of economic hardship in Nigeria. Based on the data collected from secondary sources within the period, it was found out that Nigerian local currency continue to record low value in the international market with attendant consequences on the purchasing power of the naira in Nigeria domestic market; the latent effect of this is the present inflation that has affected mostly the low income earners. The paper argued that the inherent weaknesses in Nigerian economy are the sources of economic gains for other countries and even for the petty bourgeoisie in Nigeria. This is the central argument of the paper which is rooted in the neo-Marxist tradition. While those benefiting from the comatose state of Nigerian economy would refer the status quo to be maintained, the voiceless masses that are at the painful receiving end are clamouring for economic prosperity. It is further argued that international trade is about profit making and as such Nigeria trading partners and their accomplice comprador bourgeoisie stand to derive huge surplus values from the current foreign exchange rate regime and the disarticulated state of Nigerian economy at the detriment of the poor masses. Thus, the value of the naira stands to depreciate when Nigeria’s import outweigh export. It is, therefore, recommended that Nigerian government at every level should adopt protective measures to help local industries to be strong to compete with host of other foreign industries and products in the economy, so as to produce consumable and non-consumable goods as well as create meaningful jobs for the growing population. This strategy will help to reduce the syndrome of over reliance on import that is mounting undue pressure on the value of the naira. When Nigeria becomes export-oriented,her trading partners and their accomplice comprador bourgeoisie would no longer milk the economy in the name of high foreign exchange conversion rate.


Keywords


foreign exchange rate, economic recession, Nigeria trading partners and comprador bourgeoisie

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References


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