By Ishola Balogun

Last week Friday, the United Kingdom jolted the whole world by its surprise decision to pull out of the European Union, EU a decision that immediately reverberated across the globe. In Africa, currencies, stocks, and bonds tumbled and a few days later, the pounds sterling suffered a fall against the US dollar. In Nigeria, it compounded the woes of the naira which had already been hit by the new CBN policy allowing the market forces to determine the exchange rate of the naira.

A demonstrator holds up a placard saying “Stand together Stop Brexit” at an anti-Brexit protest in Trafalgar Square in central London on June 28, 2016.
EU leaders attempted to rescue the European project and Prime Minister David Cameron sought to calm fears over Britain’s vote to leave the bloc as ratings agencies downgraded the country. Britain has been pitched into uncertainty by the June 23 referendum result, with Cameron announcing his resignation, the economy facing a string of shocks and Scotland making a fresh threat to break away. / AFP PHOTO / JUSTIN TALLIS

Chief Temitope Ajayi, a.k.a, Mama Diaspora, a Nigerian business woman based in the US in an interview examined the impact of the UK’s exit from the EU on the socio-economic wellbeing of Nigeria and Africa in general. The widely travelled woman argued that heaven will not fall from Britain’s decision adding that Nigeria should rather brace up for the challenges ahead.

According to her,  “When the news broke, people thought that heaven will fall. But the experience in the last few days has shown that it is not something out of the ordinary. Yes, the pounds sterling has fallen, giving the dollar an opportunity to rise  but I tell people that the Americans are strategists. The government rather concentrated on the other side of their economy, they concentrated on the masses. It is when you have enough that something will be available to throw around”.

Chief Ajayi stated that the era of grandstanding as giant of Agrica is gone, adding   that the country needed to play safe by concentrating on the socio-economic development of its people instead of posing as big brother in Africa and the sub-region. “There is no point doing father-Christmas around when your own people are in dire need of development. Let me give you a scenario, if you are pouring water into a basket, the water will not only flow on to the ground, the basket will fall too. Britain does not want its basket to fall, but they have now realized it and want to take a bold step. Enough of father Christmas.

“We can learn from it by concentrating on our own people, feed them with our little money. Let us use our resources to better our economy. All this big brother and giant of Africa syndrome will overstretch us beyound the elastic. Britain struck the iron when it was hot; it pulled out at the right time in order to concentrate on its people.

“Again, you have to understand that this recession is global, it is not political. Everyone will like to conserve the little it has for its own people. I rather spend the little I have for my children than open my gate to the world to feast and give myself more headache. “Again, if you look at it critically, the UK’s vote to leave the EU was based on a non-binding advisory referendum and that does not guarantee the UK’s departure from the EU. After all, there is a chance for a second referendum. But what I also discover and what I think the Britons saw was that there is political uncertainty throughout Europe and that will rattle global and African markets.

“Let me explain, I mean that there will be impact on many African economies, albeit, it may be short-term or relatively insignificant. The UK after some times, will have to focus on the bi-lateral trade with African countries.

“The South African economy is now more likely to fall back into recession, and if that happens, Nigeria can take advantage of the situation to attract new trade agreement, that is if the government takes a swift measure now to boost internal production for export. Unfortunately, Nigeria at this time needs a helping hand. “The security situation is growing worse. Beyond trade and investment, the UK is also a key partner in Nigerian security. Although, the fight against the insurgents have been largely won by the troops, but the bi-lateral arrangement on security with the UK may discontinue since Britain which is also one of the largest development assistance donors to Nigeria now seems not ready for a father-Christmas show”.

She however shared the view of some analysts and economists who argued that the development will spell doom for Nigeria owing to the deterioration of the country’s already struggling economy, which has been caused by the fall in global oil prices and a steep drop in local crude production due to insurgency in the Niger Delta. “If you examine the fact that Nigeria is the UK’s second-largest export market in Africa, you will appreciate the fact that we need them more that they need us.

“My advise for the country is, in using my late father’s axiom, that you stoop to conquer; and that no matter how dark the road may be, there is light at the end of the tunnel. Now, reality has set in and we are contending with the harsh reality of a new beginning. However, democracy is on track, credibility is being attained and this is change for that matter. We have all sinned and I think we should all beg God for forgiveness,” she stated.