Editorial
Saving The Naira
These are not the best of times for the Nigerian national currency, the Naira. It is buffeted on all sides by a fast depreciating value. Already, the weak local currency is taking a toll on the nation’s economy which is now encountering declining industrial production, massive job losses, escalating cost of living, worsening insecurity and difficulties in transportation, among others. When condensed, they present a hazardous slide towards a comprehensive economic meltdown. The flit needs to be stalled.
The Naira has been in a free fall. It plunged to a new low of N620 to US$1 last week in the parallel market, heightening fears of a further devaluation by the Central Bank of Nigeria (CBN). According to data published by FMDQ Group, where forex is officially traded, the Naira, which opened trading at N426.63, closed at N430.33 to a dollar last Friday. Experts say this is the weakest the Naira has exchanged this year. This upturns fiscal planning in the public and private sectors.
As businesses and citizens fussed over the foreign exchange volatility and its attendant negative effects, the CBN raised the benchmark interest rate from 11.5 per cent to 13 per cent for the first time in two years. This will invariably push inflation further up. The local currency is diminishing steadily following increased speculation, receding external reserves, and low forex inflows.
External reserves fell by $313 million in March, says the CBN. The rise in the acceleration of political activities is seen also as a key factor in the depreciating exchange rate. Meanwhile, politicians are reportedly mopping up dollars for the 2023 electioneering. The Federal Government is not managing the headwinds effectively. The country remains import-dependent and relies on crude oil for over 80 per cent of its foreign earnings.
Nigeria is not profiting from the increasing oil prices fuelled by the Russia-Ukraine war. This is because of a lack of capability to heighten production as a result of enormous crude oil thievery and dwindling investment. Diaspora remittances, which depict an important source of forex inflow into the country, have been on the fall recently from $12.3 billion in the second half of 2018 to $9.3 billion in the first half of 2021, according to CBN data.
The collapsing Naira is a huge trouble for our nation. The random way the CBN has been overseeing the economy is a reason for worry. The system is replete with contrariety, patronisation and corruption. Analysts fear the currency may wreck farther N1,000 to $1 shortly. The apex bank’s many exchange rate regimes power massive fraud. Connected operators generate tremendous profits, while those in the real sector can scarcely procure forex. They are compelled to get dollars from the parallel market, as the official sources rarely satisfy a fraction of their demands.
This is further worsened by the CBN Governor, Godwin Emefiele’s recent involvement in politics which has corroded the modicum of faith Nigerians and international investors had in the CBN’s capacity to navigate the economy on the corridor of advancement and oversee inflation, forex, and interest rates. The National Bureau of Statistics (NBS) said inflation jumped to 18.6 per cent this month, the highest this year, following a comparable uptick recorded last month on the back of higher energy and food prices.
Again, Nigeria’s cumulative debt burden rose to N39.55 trillion in December 2021, denoting N1.55 trillion or a 4.1 per cent increase in three months from N38 trillion in September 2021. The regime’s craving for borrowing is phenomenal. Last April, President Muhammadu Buhari solicited authorisation for an upswing in the 2022 budget deficit to be financed through domestic borrowing a few days after the Debt Management Office (DMO) disclosed a schedule of the Federal Government’s N720 billion domestic borrowing plans for the second quarter of 2022.
Industry cessations and the attendant job losses, congestion at the ports, and rising JET-A1 price that has almost incapacitated the domestic aviation industry are unmistakable signs of a falling economy. The Federal Government should put a stop to borrowings in another phoney bid to rebuild the doomed refineries, the Ajaokuta Steel Company and other unreasonable overheads.
For the Nigerian Naira to grow, the exchange rate must stabilise. The current situation has already affected the country’s manufacturers significantly. For instance, how do manufacturers who import raw materials strategise in a regime of volatile exchange rates? Many of them have complained bitterly about how the plummeting exchange rates impacted their planning and put them in a most difficult situation.
Furthermore, foreign investors have to be attracted to the nation’s capital market. The problem requires a multi-pronged solution, and it is achievable if more seriousness is attached to it. The concerns that make capital importation dwindle must be addressed. The absence of foreign investors is drying up the source of foreign exchange which could have provided succour to the waning currency.
The highly exorbitant political system Nigeria runs is not boosting the Naira. For example, presidential aspirants under the ruling All Progressives Congress (APC) paid a minimum of N100 million to obtain the party’s presidential form, while the opposition Peoples Democratic Party (PDP) expended N40 million. At the just concluded convention of the two leading parties, it was reported that delegates were reimbursed profoundly in dollars.
Meanwhile, the electioneering span has just begun, and now the Naira is exchanged for N620/$ at the parallel market. More money will still be injected into the political space in an election season such as this. Therefore, there is no assurance that the exchange rate will not worsen. The economy cannot experience any meaningful growth if this particular trend is not stopped.
Efforts are also needed in demand management to promote Nigerian-made goods, manufacturers source raw materials, and eliminate political interference in foreign exchange allocation to qualified end users. If these policies and many others are not adopted, the rapid depreciation of the Naira would prolong indefinitely, with its concomitant effect on the inflation rate. These would not be in the overall best interest of the palpitating Nigerian economy.
Editorial
In Support Of Neighbourhood Watch Revival
Governor Siminalayi Fubara’s decision to reintroduce the Rivers Neighbourhood Watch, also known as Rivers State Neighbourhood Safety Corps, after six years of its establishment, reflects the Governor’s dedication to the security of the residents of the state. The Neighbourhood Watch, which was established by the previous administration, serves as a community-based security organisation with a primary goal of boosting community safety, especially in addressing the prevalent issue of oil theft in the region.
Neighbourhood Safety Corps has been inactive or inadequately funded for approximately six years as a result of several administrative challenges. Governor Fubara recently convened a meeting with the leaders of the security outfit in a private setting, expressing a firm commitment to rejuvenate the organisation. This initiative is accompanied by assurances of improved assistance and incorporation into the state’s security framework.
The leader of the Corps, Wogbo Lawrence, expressed gratitude to the Governor for the initiative, emphasising the challenges the outfit faces in sustaining its operations with limited support. He mentioned that they had successfully kept about 1,150 personnel engaged throughout the 23 local government areas of the state. The Director-General of the agency, Mike Chukwuma, who is a retired Assistant Commissioner of Police and former experienced police public relations officer (PPRO) in Rivers State, also praised Fubara’s decision.
Governor Fubara’s actions exemplify a comprehensive approach to addressing local security concerns by actively involving communities, thereby establishing a potential model for state governments to interact with local residents on security issues. Nevertheless, the success of this initiative will hinge on its proper execution, adequate funding, and sustained support from the community in the long term.
Following the signing of the bill for the establishment of the agency into law by former Governor Nyesom Wike in March 2018, its complete implementation faced obstacles due to allegations from the opposition All Progressives Congress (APC) in the state. The APC claimed that the security structure was intended to intimidate its members during the 2019 elections, leading to a prolonged legal dispute that was ultimately resolved in the Supreme Court.
The Tide highly commends the Governor for his efforts in revitalising the stagnant institution. If implemented, security will be accessible throughout the entire state. This initiative will facilitate the smooth operation of businesses for all residents. By promoting the establishment of individually designed security systems by states, the prevailing security issues plaguing the nation can be effectively eliminated.
Upon the outfit becoming fully operational, it is important that the state government expeditiously address the outstanding salaries owed to the employees by the previous administration. Resolving these unsettled obligations is essential not only for boosting the morale of the workforce but also for optimising operational efficiency. Unpaid salaries have the capacity to reduce productivity and increase discontent among employees, thereby jeopardising the overall efficacy of public services.
Like any conscientious organisation, the Rivers State Neighbourhood Safety Corps has clear objectives. The objectives are (a) gathering information about crime, crime in progress, suspicious activities and crime suspects away from other things; (b) making available such relevant information on crime, crime in progress; suspicious activities and crime suspects to the police or other security agencies that require it; (c) putting structures in place to ensure that hoodlums and cult groups do not have the opportunity to operate within the state.
Others include (d) undertaking routine motorised patrol day and night; (e) reducing the crime rate and ensuring that offenders are identified and made to account for their misdeeds; (f) following up on arrest of offenders to court and ensuring justice; (g) timely reporting of suspicious activities and crimes in progress to the police or other security agencies; (h) improving relationship between the police and the community as it concerns law enforcement.
Also, (i) contributing in maintaining community peace; (j) providing the police with relevant information that will enhance their understanding of how to effectively police the communities and; (k) assisting the police carry out any other lawful activities in maintaining law and order.
Indeed, the underlying objectives of this legislation are commendable as they reflect the desire for a more secure state. Proper execution holds the potential to offer a greater sense of protection to all individuals. However, Rivers people place a strong emphasis on the agency’s neutrality. There is a lasting concern that it could be misused against political opponents, a worry that has been present since its inception in 2018. Therefore, it will be vital to establish transparency and accountability in its undertakings to address these anxieties and cultivate a truly safe environment for all residents of the state.
Unlike the previous administration, there is necessity to effectively fund the enterprise to guarantee its sustainability. Without adequate resources, the organisation faces a risk of stagnation, which could lead to it becoming inactive once more. Strategic financial investment is obligatory for maintaining operational consistency, as well as for promoting innovation and expansion. Giving precedence to financial backing can establish a strong foundation that enables the enterprise to prosper, overcome obstacles, and ultimately accomplish its mission more efficiently in a continuously changing environment.
Through the implementation of the Neighbourhood Watch programme, it is anticipated that the obstacles currently encountered by law enforcement agencies in the state will be alleviated. This initiative aims to address concerns like delayed police responses to emergencies and mishandling of information, ultimately leading to improved public safety. The outfit is expected to generate employment opportunities for the youth, foster stronger relationships, respect, and trust between the organisation and community members. Residents will feel more actively involved in crime prevention and management. Rivers people should rally behind the Governor in actualising this laudable project.
Editorial
One Building Collapse Too Many
The death of nine persons with 31 others injured when a seven-storey-building collapsed along Woji Road in the GRA Phase 2 axis of Port Harcourt on Friday, November 23, 2018, has once again called attention to the level of abnormality going on in Nigeria.
According to reports, the building which was under construction, collapsed after an additional floor was added to it. The government has sympathised with those who lost their loved ones. The Governor of Rivers State, Chief Nyesom Wike, who visited the site also ordered the arrest of the owner and all those involved in the construction of the ill-fated building.
Experts have said that some factors responsible for such occurrences include dominance of quacks in the construction industry, design error, poor construction supervision, conversion of residential buildings to commercial houses, abandoned structures, civil commotion; natural disasters, code of practice, effect of high temperature, developers interference, poor building materials and lack of building maintenance culture, among others.
But basic requirement for approval of building plans is that planning and design should be executed by persons with current licences from the Council for the Regulation of Engineering in Nigeria (COREN), Architects Registration Council of Nigeria (ARCON) and the Council of Registered Planners. There have been cases where building plans of a one-storey building are approved without being certified, and sealed by COREN registered engineers.
It is against this backdrop that The Tide welcomes the swift action taken by the Rivers State Government in setting up a five-man judicial commission of inquiry headed by Hon. Justice Adolphus Enebeli to look into the circumstances surrounding the collapsed building in Port Harcourt. We expect the panel to do the needful and come out with measures that will lead to a permanent solution to the menace and check the re-occurrence of such ugly incident.
We equally urge all stakeholders to place emphasis on use of right materials for construction of buildings and other infrastructure, periodic testing of building materials and concretes during construction, employment of the right calibre of professionals and artisans in the design and construction of buildings, ensure that designs are checked, cross-checked by the right professionals, sealed and approved before construction can commence.
We also suggest that Nigerians should imbibe the practice of adopting preventive, corrective and condition-based maintenance culture and reporting cases of buildings showing signs of failure to the Nigerian Society of Engineers (NSE) and Prevention Investigation and Failure Analysis Committee. By so doing, lives may be saved. Also, there should be a review and enforcement of urban planning laws to regulate building products and processes.
The professional bodies should come together and set up a development control resource centre as it has become obvious that development control in the public sector is not working. Government must come up with specific legislations and set up specific standards on building construction.
We reckon that as long as artisans are left to manage construction processes, and until defaulters are convicted and jailed, building collapse would persist in the country.
Therefore, to avert a repeat of this sad development, the prevailing disregard for professionalism must stop henceforth. Professionals engaged in building projects should be sanctioned if found culpable. Professional bodies in the built sector should as a matter of urgency demand the immediate reconciliation of all the urban and physical planning laws as well as the immediate domestication of the National Building Code.
While we commiserate with the families of victims, an improved level of compliance to constructive principles by construction industry stakeholders is required to check building collapse.
Editorial
Ugochinyere’s Allegation, Time For PDP To Act
Some opposition lawmakers, under the aegis of the Coalition for United Political Parties (CUPP), recently raised an alarm over a renewed plot by the 27 lawmakers of the Rivers State House of Assembly to impeach Governor Siminalayi Fubara. The legislators had defected to the All Progressives Congress (APC) from the Peoples Democratic Party (PDP) last December.
The spokesman of the coalition, Hon. Ikenga Ugochinyere, made this claim during a press briefing held in the National Assembly, Abuja. He revealed some leaked court documents signed by the PDP Acting Chairman, Illiya Umar Damagun, and the PDP Secretary, Senator Samuel Anyanwu, to aid the pro-Wike APC interest against a party in Rivers State and to assist in their attempt to remove Governor Fubara from office.
Speaking during the media chat, Hon. Ugochinyere said: “The opposition lawmakers coalition under the main opposition coalition umbrella, the CUPP, today raised serious allegations against the party’s Acting National Chairman, Mr Umar Damagum, and National Secretary, Senator Samuel Anyanwu.
“The lawmakers accused the two party leaders of a covert plot to sabotage the PDP’s interests in an ongoing legal battle involving defected former members of the Rivers State House of Assembly which is part of a desperate and shameful effort to betray their party, destroy all legal efforts and aid the pro-Wike APC elements have the legal backing to attempt their impossible plot of removing the PDP government led by Gov. Fubara out of office.”
He further claimed that the national chairman of the PDP, along with the secretary, shamefully opposed the national legal adviser’s effort to neutralise and prevent the pro-Wike dismissed APC lawmakers from jeopardising the interests of the PDP. The chairman and secretary sought to support the pro-Wike APC lawmakers who were dismissed, hoping to help them regain their lost legitimacy and make another attempt to remove their party’s governor.
No doubt, Ugochinyere’s accusation carries significant weight and raises serious concerns that warrant a thorough investigation to determine its truthfulness. It is particularly disheartening and unfortunate that such assertions are directed at the individuals holding the two highest offices in the party, as this tarnishes the integrity of the institutions they represent. The gravity of the troubling situation cannot be overstated.
We unequivocally denounce the actions of the Chairman and Secretary of the main opposition party in their purported involvement in a plot to impeach the Rivers State governor. It is shocking to witness such a betrayal of trust and blatant disregard for a dedicated party member. The governor has been tirelessly working to uplift the lives of his people and promote development in the state, only to face opposition from within his political party.
It is deeply disappointing to witness the leadership of a major political party prioritise the interests of a single individual over the well-being of the people they were elected to serve. Governor Fubara has been a beacon of hope for the PDP and residents of Rivers State, and his dedication to good governance should be celebrated and supported, not undermined by those within his party. The move to impeach him reeks of political opportunism and a lack of regard for party commitment and loyalty.
Though the PDP Governors Forum and the Board of Trustees (BOT) have condemned the move to unseat Fubara, however, to truly safeguard democracy and party dignity, they must do more than offer solidarity. They must proactively mobilise their party machinery and thwart the nefarious plans of those seeking to subvert the party’s interests. They should move against the defected 27 lawmakers and the machinations of the APC. By denying these individuals a platform within the PDP, both organs can effectively neutralise their ability to disrupt the affairs of the once formidable PDP.
Other organs of the party should collaborate and resist the chairman and the secretary. These two officers have caused enough problems for the opposition party and do not deserve to continue in their offices. The current crisis in the PDP is attributable to them and their cohort, former Governor Nyesom Wike. The constant power struggles, lack of respect for party laws, and questionable decision-making have led to a loss of trust and support from party members and the general public. The PDP must take swift action to remove these individuals from their positions to restore unity and credibility within the party.
Stakeholders must take immediate action to prevent the potential demise of the PDP. Allowing the current crisis, fueled by the self-serving actions of the implicated officials, to continue unchecked could lead to irreparable damage. These leaders must prioritise the party’s unity over personal interests. Every member must work to safeguard the PDP’s future and reinforce its role as a vital opposition force. The time for decisive intervention is now; complacency could ultimately seal the party’s fate.
Ugochinyere’s allegations demand a prompt and transparent response from those implicated; silence may be interpreted as tacit admission of guilt. The party organs must act decisively to reclaim their party. It is disheartening to witness a once awe-inspiring political party struggle to present a cohesive front, particularly with the 2027 elections looming. This fragmentation signals a troubling departure from the PDP that Nigerians once revered, raising concerns about its future viability and relevance in a rapidly evolving political landscape. Unity, discipline, and internal democracy are essential for the party’s revival.
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