NAIRA APPRECIATION: WHAT IT MEANS FOR THE ECONOMY AND UNEMPLOYMENT IN NIGERIA

The naira has continued its rapid recovery against the Dollar, trading at 400 per dollar in the parallel market today. The appreciation of the Nigerian naira against the US dollars is, without a doubt, an exciting phenomenon and a welcome development. This change will affect the economy positively and reduce unemployment if it is sustained. What does this mean for the economy and unemployment in Nigeria? Here are five ways we think the economy and employment will be affected.

1. Reduced Cost of production: Many companies were shut down due to their inability to cope with the cost of importing raw materials for production. companies that depend on raw materials will be able to commence their production. There will be abundant dollars to purchase and import raw materials from other countries.

2. Job security: While unemployment has always remained a major national challenge, the economic recession that ravaged Nigeria last year led to more cases of unemployment as some oil companies, banks, and other corporate organisations decided to reduce their staff strength in order to cope with the rising tides.

3. An increase in Investors: If the strength of the naira is sustained, there will be an increase of investors in Nigerian businesses.

4. Affordable education for youths: educational institutions will be able to afford to employ qualified lecturers and build facilities that aid learning. This will enhance the quality of education and produce graduates who are skilled and qualified for the available jobs.

5. Ease of starting a business: Small scale businesses were terminated in their infancy due to lack of funds to maintain the business. If the naira continues to appreciate, small businesses will be able to thrive, thus creating jobs. Individuals will be able to start and maintain businesses with little capital



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