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Tough times ahead after elections

The 2015 election will certainly come and go but the after effect may linger for a long time. Whether it is PDP or APC that eventually wins the presidential election, the party that will come to power post-election, had better get prepared for the handling of the economy. As it stands, the nation is on a financial cliff that can fall off any time except a miracle happens. The one commodity that provides life support for the economy has seen its price at the international market fall to as low as $58 per barrel.

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Nigeria is in a foreign exchange quagmire

The recent devaluation of the Naira has again brought the vulnerability of the average Nigerian to the fore. Almost every housewife today tells the husband that the exchange rate of the Naira to the dollar has gone up. This is because in the market place, traders adjust prices along the day’s exchange rate swing. Many are wondering why this should be so. In finance, an exchange rate between two currencies is the rate at which one currency will be exchanged for another.

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Deregulate petrol price now, or never

The Federal Government directive last week Monday to slash fuel prices is a sobre and welcome development which Nigerians should all applaud. The projected direct effect of this development is immediate reduction in the cost of public transport fares, transportation of goods and reduced production costs of goods and services. This ultimately should lead to reduction in prices of basic commodities, and increased buying power for the citizenry.

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The proverbial rains are here; Nigeria which way to go?

Looking at development in the international oil market, Nigeria may be heading for another difficult time from external shock. This time, the impact on the economy may be worse than the impact the 2008 global financial crisis had on it. Oil prices are tumbling and traditional importers of crude oil are either finding alternatives or are over supplied. Nigerian economy may face very difficult time in the next two or so years.

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Think of the alternative before making the choice of who leads

Economists usually begin their thoughts with choices, scale of preference and alternatives forgone. Individuals, households, firms and nations make choices. The choice that each of these entities makes depends on how informed the one making the choice is on available alternatives and the opportunity cost of the choice made. The opportunity cost is the alternative forgone for the purpose of making the choice. There are economic choices as well as political choices.

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