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Editorial

De-Escalating Tensions In The Gulf

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Tensions between the United States and Iran have spiked over the last one year following President Donald Trump’s unilateral decision to pull out of the 2015 Joint Comprehensive Plan of Action (JCPoA) otherwise called the Iran nuclear deal, and announcement of crushing economic sanctions effective November 4, 2018, in veiled implementation of the July, 2017 US Congress vote on Countering America’s Adversaries Through Sanctions Act (CAATSA) against Iran, Russia and North Korea.
Trump’s harsh Iran policy immediately sparked international condemnation, with a caution that Iran was complying fully with letters of the deal, and warning that the US policy could trigger a reversal to the old order which encouraged Iran’s nuclear enrichment policy and confrontation with the West.
Indeed, recent US sanctions on Iran began with the US Executive Order 12170 following the 1979 seizure of US Embassy in Tehran as an outcome of the Iranian Revolution, and have been renewed since then with the Iran and Libya Sanctions Act 1996, extended by five years in 2001, and extended again for 10 years with the Iran Sanctions Act 2006. These sanctions, targeting Iran’s financial services, oil and gas sector, property, gold, food, spare parts, medical products, regime leaderships and Iran Revolutionary Guard (IRG) officials, have had crippling effects on the economy and the people. To worsen issues, till date, no diplomatic relations exist between the US and Iran; two nations that have had close ties since 1834 when it was Persia.
While justifying his decision, Trump said the US was not satisfied with the content of the Iran nuclear deal signed on July 14, 2015 by Iran and the United Nations Security Council’s permanent members – USA, United Kingdom, Russia, France and China plus Germany and the European Union; designed to help smoothen relations and facilitate lifting of US economic sanctions, just as Iran gives up its nuclear capabilities and allows Vienna-based International Atomic Energy Agency (IAEA) workers to do facility checks on its nuclear sites unhindered. As a result of this success of diplomacy under the Barack Obama administration, the US supported the UNSC Resolution 2231 of July 20, 2015 which welcomed “Iran’s reaffirmation in the JCPoP that it will under no circumstances ever seek, develop or acquire any nuclear weapons”.
Unfortunately, since May this year, tensions have escalated in the Gulf, following Trump’s deployment of significant strategic military assets to the Persian Gulf as part of measures to check any untoward activities of alleged Iranian renegade mercenaries and proxies against US allies in the region, which Trump and his hawkish advisers have explained, were increasing their nefarious actions in the Middle East at the behest of IRG commanders.
But since the massive military deployments began, a number of dangerous incidents threatening world peace and economic stability have occurred, including the seizure of oil tankers, attacks on oil and cargo vessels, and the downing of US drone in the Persian Gulf, Gulf of Oman and the Strait of Hormuz, belonging to some Middle East and European countries.
With the rising tensions, the complex situation in the Strait of Hormuz poses serious concern because the 1982 UN Convention on the Law of the Sea technically grants Iran control rights over territorial sea or coastal waters extending 12 nautical miles or 22.2km or 13.8miles from the baseline of its coastline, including airspace, seabed, suboil beneath; contiguous zone adjacent to and extending seaward up to 24 nautical miles from its baseline; and exclusive economic zone adjacent and extending seaward up to 200 nautical miles, but not beyond the continental shelf above 200 nautical miles. It also gives Iran rights to defend any violation of recognised maritime laws and regulations.
The Tide recalls that the aftermath of the two Gulf Wars: – Iran/Iraq and US-led allies vs Iraq wars – had devastating disruptions in world economies, resulting in the great depression and contraction in major countries. We also note that the several conflicts in North Africa, especially Libya and the Middle East, particularly Syria, Iraq, Yemen, Lebanon, and intermittently between Israel and Palestinian militias, have collectively inflicted severe consequences on world economic stability, growth and progress.
This is why we think that the current tensions in the Gulf should have been avoided by the Trump administration by respecting the agreed terms of the 2015 JCPoA. Besides, we also believe that the strings of economic sanctions and others slammed on Iranian regime leaders and IRG commanders actually undermine the course of global peace and economic prosperity. This is because before the new sanctions, Iran was complying with the terms of the deal, as attested to by EU nations, China and Russia, prompting their initial refusal to align with Trump in his aggressive policy against Iran.
While The Tide agrees that the JCPoA, just like many agreements and constitutions may not have captured all provisions required to tame Iran’s intransigence and mercenary activities across the Middle East, Afghanistan, Pakistan, Africa, Europe, South East Asia, and elsewhere, we think that all parties to the Nuclear Non-Proliferation Treaty (NPT), particularly the US Government should have given the Iran nuclear deal a chance to achieve its mandate. Of course, Iran reserves the right to protect and defend its territorial waters, contiguous and exclusive economic zones, exercise control necessary to prevent infringement of its customs, fiscal, immigration laws and regulations, and punish any violations within the law. And given the proximity of the Strait of Hormuz and the Persian Gulf to Iran’s territorial waters and airspace, we feel that US many adversary actions amount to clear provocation of its sovereignty. Even the convergence of warships from US, UK, and others to escort vessels out of the Gulf to the ocean is only an invitation to chaos.
We believe that only diplomacy can bring about peaceful resolution of the impasse in the Gulf. Intimidating military and aggressive economic pressures to force Iran to do America’s bidding is nothing but bullying, and should not be accepted in international politics. We feel that Iran’s current actions are borne out of frustration from US unfriendly tactics. We have seen the failure of this strategy in North Korea, where Kim Jong-Un is still busy testing short and medium range ballistic missiles, without Trump raising an eyebrow. Therefore, we urge Trump to withdraw the sanctions forced on Iran, and seek dialogue based on mutual respect, justice and equity.

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Editorial

CBN And Nigeria’s Cash Crunch

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Nigerians have, again, been thrust into desperation as they grapple with cash shortage that has cast a dark shadow over their daily lives. Months after the Supreme Court’s ruling permitting the coexistence of the old and new naira notes, the crisis persists, leaving countless individuals struggling to secure basic necessities.
The scarcity of naira notes has partially crippled commerce throughout the country, especially in the informal sector. Businesses are incapacitated, unable to complete transactions efficiently, resulting in a slowdown of economic activities. Some people are left in dire straits, desperate for cash to meet essential expenses such as food, transportation, and healthcare, among others.
The cash crisis has created a fertile ground for unscrupulous elements and businesses to engage in predatory tactics. Retailers are exploiting the despair of consumers by overcharging for goods, while others hoard cash to sell at inflated prices. This rampant profiteering has further burdened the already strained financial resources of many Nigerians.
It is deeply concerning that while the citizens are still contending with the fallout of a failed disastrous currency redesign policy last year, the Central Bank of Nigeria (CBN) has initiated another misguided scheme that has exacerbated the scarcity of the legal tender. This ill-conceived move is implemented at a time when Nigerians are already struggling with inflation, rising unemployment, and declining living standards. The CBN’s actions have only served to compound their plight.
The timing of the plan is particularly cruel and demonstrates a fundamental lack of consideration for the well-being of ordinary Nigerians. The Central Bank has failed to adequately assess the severe consequences of its policies on the lives of citizens, who are now compelled to endure an atmosphere of uncertainty and hardship.
Despite the apex bank’s assurances of sufficient naira notes in circulation, the cash dilemma continues to torment Nigerians. The situation has worsened following introduction of withdrawal limits by the nation’s financial authorities, leading to an increased reliance on Point-of-Sale (POS) terminals. However, this dependence has come at a steep cost.
POS service providers have taken undue advantage of the shortage by imposing exorbitant charges, further burdening consumers. The surge in charges has negated the convenience of POS transactions, driving up the overall cost of obtaining cash. The CBN’s claims of adequate cash supply ring hollow in light of the predatory practices of POS operators.
Currently, naira scarcity has gripped major cities across the country, with Automated Teller Machines (ATMs) running dry and commercial banks introducing withdrawal limits. Consequently, POS operators have compassed the moment to exploit the situation. Investigations have revealed that some bank officials who own POS businesses, channel cash meant for the public to these outfits. This is economic sabotage. These unpatriotic Nigerians must be identified and punished appropriately.
The Acting Director of Corporate Communications at the CBN, Mrs Hakama Sidi Ali, has acknowledged that there has been a rise in the amount of money in circulation. However, she claims that the scarcity of cash is due to individuals hoarding it. This explanation contradicts the actual situation on the ground, as numerous banks have been unable to fulfil the daily requests for cash withdrawals.
This is why it is required for the Federal Government to promptly intervene and resolve the difference between what the Central Bank asserts and the actual availability of cash. They should contemplate raising the limits for cash withdrawals, improving access to banking services in areas that lack sufficient coverage, and partnering with mobile money platforms to offer alternative payment options.
To restore confidence in the banking system and help Nigerians affected by the current liquidity crisis, it is necessary to make coordinated attempts to increase the amount of cash in circulation. This can be achieved by taking strict actions against unfair point of sale charges and implementing measures to safeguard consumers from excessive profit-making. The Central Bank can address the liquidity crisis by implementing these steps, and provide relief to the suffering population.
While we promote alternative modes of payment, including electronic channels, to reduce pressure on cash, the authorities must recognise that resolving the cash crunch is not merely an economic issue. It is a matter of social justice. Every Nigerian deserves easy access to their hard-earned money without being subjected to inordinate drudgery. The government has a moral responsibility to address this crisis swiftly and effectively to restore financial stability and ensure the well-being of all its citizens.

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Editorial

Lessons From UK Polls

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The United Kingdom’s general election of July 4 marks a turning point in the nation’s political land-
scape. It highlights the resilience of its democratic traditions. The peaceful transition of power from Rishi Sunak to Keir Starmer reflects the strength of Britain’s political institutions and the electorate’s ability to effect change.
Moreover, the landslide victory of the Labour Party signifies a potential shift in the country’s ideological trajectory, prompting a reevaluation of its political, economic, and social future. As the nation navigates this pivotal moment, the smoothness of this transition serves as a testament to the stability and adaptability of Britain’s democratic infrastructure.
One of the most striking aspects of the new cabinet is the representation of women, with 11 out of 19 cabinet members being female. This stands in contrast to the situation in Nigeria, where women are severely underrepresented in government, particularly in the Northern states where female participation in politics is almost non-existent. The success of these women in the British political arena serves as a quintessential example for Nigeria, where patriarchy still holds sway and gender equality in politics remains a distant dream.
Eight Nigerian-Britons emerged victorious in the parliamentary elections, garnering adulation from Nigerians both at home and abroad. Their success highlights the importance of merit-based selection in politics, as each Member of Parliament (MP) won their seat on the basis of their personal qualifications and achievements. Unlike in Nigeria, where political appointments are often influenced by money, party leaders, and other extraneous factors, the British system values the power of the voter and respects the rights of every citizen to participate in the democratic process.
The diverse backgrounds and professional expertise of the Nigerian-British MPs further underscore the importance of competence and performance in politics. These individuals, ranging from engineers to lawyers, have earned their seats through hard work and dedication, rather than through political connections or nepotism. Their success should serve as a wake-up call to the Nigerian political system, where the average age of politicians is over 60 and where professional qualifications are often overshadowed by tribal and religious affiliations.
A veteran politician and one of the leading Nigerian-British MPs, Kemi Badenoch, exemplifies the success that can be achieved through hard work and dedication. Despite the challenges faced by her party in the recent election, Badenoch was re-elected on the basis of her qualifications and track record in office. Her appointment as Secretary of State for the Department for Business and Trade is a testament to her capabilities and leadership skills.
The current political climate in Nigeria stands in sharp contrast to the achievements of Nigerian-British professionals in the political sphere. Through their perseverance, commitment, and professional knowledge, Taiwo Owatemi, Chi Onwurah, Kate Osamor, Bayo Alaba, Josh Babarinde, Florence Eshalomi, Helen Grant, and Kemi Badenoch have all been elected to the legislature. This is in contradistinction to the state of affairs in Nigeria, where many politicians are viewed as “professional politicians” who lack distinguishable credentials or sources of income.
Nigeria’s electoral system is radically different from that of Britain, where candidates accept the results of the poll without filing lawsuits. Britain’s electoral procedure is also transparent and effective. But in Nigeria, courts are routinely called upon to resolve electoral disputes since elections are frequently tainted by violence, corruption, and legal problems. Nigeria’s electoral process is not credible due to the absence of intra-party democracy and the involvement of cronies and godfathers.
While the political achievements of the elected Nigerians are commendable, they also serve as a sobering reminder of the weaknesses in our democratic system. After all, competence and performance ought to be the main determinants of electoral success, not religious and tribal affinities as they frequently are in Nigeria. The achievements of these Nigerian-Britons should compel a reassessment of Nigeria’s political environment, highlighting the necessity of a more efficient and responsible democratic system.
Unfortunately, the high rate of litigation in Nigeria’s elections threatens the country’s democratic process, creating tension and uncertainty from pre-election disputes to post-election challenges. This undermines voter choices and trust in the electoral system, raising concerns about the judiciary’s independence. Electoral reforms promoting transparency, accountability, and timely dispute resolution outside the courts are needed to strengthen democracy in Nigeria.
Our nation’s democracy is at a critical point and must evolve to survive. We need to shift away from costly campaigns and prioritise electoral integrity by safeguarding voter rights and promoting transparency. By addressing key national issues, Nigerian politics can become more sustainable and effective. These reforms are essential for our nation to progress towards a more inclusive and representative government.
Nigeria and other countries grappling with democratic government ought to take note of the Nigerian-British MPs’ accomplishments. Political leaders must be held responsible for their acts, and citizenship entails both rights and obligations. To be a really democratic society, where the power of the vote is honoured and protected, a society should be based on competence, performance, and transparency. Then and only then, regardless of origin or background, can we aspire to create a brighter future for every citizen.

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Editorial

CBN And Nigeria’s Cash Crunch

Published

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Nigerians have, again, been thrust into desperation as they grapple with cash shortage that has cast a dark shadow over their daily lives. Months after the Supreme Court’s ruling permitting the coexistence of the old and new naira notes, the crisis persists, leaving countless individuals struggling to secure basic necessities.
The scarcity of naira notes has partially crippled commerce throughout the country, especially in the informal sector. Businesses are incapacitated, unable to complete transactions efficiently, resulting in a slowdown of economic activities. Some people are left in dire straits, desperate for cash to meet essential expenses such as food, transportation, and healthcare, among others.
The cash crisis has created a fertile ground for unscrupulous elements and businesses to engage in predatory tactics. Retailers are exploiting the despair of consumers by overcharging for goods, while others hoard cash to sell at inflated prices. This rampant profiteering has further burdened the already strained financial resources of many Nigerians.
It is deeply concerning that while the citizens are still contending with the fallout of a failed disastrous currency redesign policy last year, the Central Bank of Nigeria (CBN) has initiated another misguided scheme that has exacerbated the scarcity of the legal tender. This ill-conceived move is implemented at a time when Nigerians are already struggling with inflation, rising unemployment, and declining living standards. The CBN’s actions have only served to compound their plight.
The timing of the plan is particularly cruel and demonstrates a fundamental lack of consideration for the well-being of ordinary Nigerians. The Central Bank has failed to adequately assess the severe consequences of its policies on the lives of citizens, who are now compelled to endure an atmosphere of uncertainty and hardship.
Despite the apex bank’s assurances of sufficient naira notes in circulation, the cash dilemma continues to torment Nigerians. The situation has worsened following introduction of withdrawal limits by the nation’s financial authorities, leading to an increased reliance on Point-of-Sale (POS) terminals. However, this dependence has come at a steep cost.
POS service providers have taken undue advantage of the shortage by imposing exorbitant charges, further burdening consumers. The surge in charges has negated the convenience of POS transactions, driving up the overall cost of obtaining cash. The CBN’s claims of adequate cash supply ring hollow in light of the predatory practices of POS operators.
Currently, naira scarcity has gripped major cities across the country, with Automated Teller Machines (ATMs) running dry and commercial banks introducing withdrawal limits. Consequently, POS operators have compassed the moment to exploit the situation. Investigations have revealed that some bank officials who own POS businesses, channel cash meant for the public to these outfits. This is economic sabotage. These unpatriotic Nigerians must be identified and punished appropriately.
The Acting Director of Corporate Communications at the CBN, Mrs Hakama Sidi Ali, has acknowledged that there has been a rise in the amount of money in circulation. However, she claims that the scarcity of cash is due to individuals hoarding it. This explanation contradicts the actual situation on the ground, as numerous banks have been unable to fulfil the daily requests for cash withdrawals.
This is why it is required for the Federal Government to promptly intervene and resolve the difference between what the Central Bank asserts and the actual availability of cash. They should contemplate raising the limits for cash withdrawals, improving access to banking services in areas that lack sufficient coverage, and partnering with mobile money platforms to offer alternative payment options.
To restore confidence in the banking system and help Nigerians affected by the current liquidity crisis, it is necessary to make coordinated attempts to increase the amount of cash in circulation. This can be achieved by taking strict actions against unfair point of sale charges and implementing measures to safeguard consumers from excessive profit-making. The Central Bank can address the liquidity crisis by implementing these steps, and provide relief to the suffering population.
While we promote alternative modes of payment, including electronic channels, to reduce pressure on cash, the authorities must recognise that resolving the cash crunch is not merely an economic issue. It is a matter of social justice. Every Nigerian deserves easy access to their hard-earned money without being subjected to inordinate drudgery. The government has a moral responsibility to address this crisis swiftly and effectively to restore financial stability and ensure the well-being of all its citizens.

Continue Reading

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