Naira Devaluation and People’s Standard of Living in Rivers State (1972-2023)

The devaluation of Naira poses series of effects on Nigeria’s economy. It is on this basis that the present study discussed naira devaluation and people’s standard of living in Rivers State (1972-2023). Two research questions were posed to guide the study such as: how has naira depreciation today affected the poor and local economy in Rivers State? In what ways does naira devaluation today different from the naira value of yesterday in terms of the standard of living in Rivers State? Two corresponding objectives were used to guide this position paper with the use of secondary materials that were analyzed through content analysis. Furthermore, the system theory developed by Ludwig Von Bertalanffy was used as it linked the relationship that exists between the variables. Findings revealed that the recent depreciation of the naira has had significant repercussions on the local economy and the impoverished population in Rivers State. As the naira weakens, the cost of imported goods, including essential items like food and fuel, has escalated, leading to heightened inflation. This surge in prices disproportionately affects low-income households, as a larger portion of their limited income is now required to meet basic needs. Unlike early 1970s, 1980s 1990s and early 20000s where standard of living in Rivers State was quite comprehensible. Where a bag of rice was sold below #7,000, where a litre of fuel was sold below #2,00 and transportation of individuals, goods and services were relatively cheaper. Businesses in Rivers State are also grappling with increased operational costs due to the higher expenses associated with imports and transportation. These added costs often result in elevated prices for consumers, further straining household budgets. Additionally, the economic uncertainty stemming from the naira’s devaluation has led to weakened business confidence, potentially hindering investment and economic growth in the region. It was recommended that there should be investment in education and vocational training programs as this can empower the residents of Rivers State with the skills needed to participate in a diversified economy, and in turn, can lead to increased productivity, entrepreneurship, and competitiveness in both local and international markets.