The year 2024 may bring about a myriad of risks and challenges for Nigeria, potentially impacting various facets of society and the economy. These risks range from economic uncertainties such as business closures, job losses, and inflation, to social issues like crime, protests, and ethnic/religious disintegration thereby creating social unrest.
As we look ahead to the year 2024, Nigeria faces a host of risks and challenges that have the potential to greatly impact our society and economy. From economic uncertainties to social issues, the coming year is sure to bring its fair share of obstacles, including social unrest.
One of the major concerns is the depreciation of the Naira, with the possibility of it reaching an exchange rate of N2,000 to the US dollar by mid-2024. This could lead to further fuel price hikes, exacerbating the already pressing issue of inflation, which may spike to 35% in the first half of the year.
Additionally, the country may face repercussions of MNC divestiture, further burdening the economy. The looming threat of a debt crisis could also compel the government to resort to borrowing, potentially deepening the financial woes of the nation.
Social unrest, health implications, and the risk of famine add to the already high stakes for Nigeria in 2024. The potential breakdown of essential government services, labor strikes, and corruption further compound the challenges facing the nation.
Meanwhile, the Central Bank of Nigeria (CBN) is currently said to be facing a sense of apprehension as the Naira is expected to weaken further with the imminent disbursement of funds through the Federation Account Allocation Committee (FAAC). The FAAC is responsible for distributing revenues generated into the federation’s accounts among the federal, state, and local governments. However, concerns have been raised regarding the impact of these allocations on the value of the local currency.
Intelligence reports from sources within the intelligence agencies have highlighted a troubling trend where the Naira depreciates whenever FAAC allocations are shared among the various tiers of government. It has been alleged that some governors engage in the questionable practice of converting large amounts of Naira to dollars in the black market each time FAAC funds are disbursed. These funds are believed to be funneled through suspect bank accounts to Bureau De Change operators who then provide the governors with cash in dollars.
This corrupt practice not only raises concerns about the misuse of public funds but also has significant implications for the country’s foreign exchange market. By flooding the market with dollars obtained through dubious means, these governors are contributing to the devaluation of the Naira and creating instability in the foreign exchange market. This, in turn, can have adverse effects on the economy as a whole, leading to inflation and other economic challenges.
The alarming reports of governors converting FAAC allocations to dollars through illicit means highlight the urgent need for transparency and accountability in the management of public funds. The CBN and other relevant authorities must take decisive action to curb these practices and protect the stability of the Naira and the country’s financial system. Only through honest and responsible governance can Nigeria achieve sustainable economic growth and development.
Immediate action must be taken to address these corrupt practices and ensure the proper allocation and utilization of public funds. The authorities must investigate these allegations thoroughly and hold those involved accountable for their actions. Strict measures should be put in place to prevent such abuses of power in the future and safeguard the integrity of the country’s financial system.
It is imperative for stakeholders, including the government, businesses, and citizens, to be proactive in addressing these risks. Collaborative efforts, sound policies, and transparency in governance will be crucial in mitigating the likely risks before Nigeria in 2024. Only through strategic planning, effective communication, and decisive actions can the nation navigate through these turbulent times and emerge stronger and more resilient.
Let this serve as a stark reminder of the importance of addressing these issues before they escalate further.
By Abdul-Azeez Suleiman
