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Editorial

Naira’s Free Fall

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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.

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Editorial

That Odili’s Health Centre Gesture 

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Ndoni, a small, but peaceful community in Ogba/Egbema/Ndoni Local Government Area of Rivers State
was recently filled with excitement when eminent dignitaries, including Governor Siminalayi Fubara, attended the inauguration of the new Comprehensive Primary Healthcare Centre. This generous donation came from the PAMO Educational Foundation, established by former Rivers State Governor, Dr Peter Odili, who hails from the Ndoni community where he is deeply revered. The Foundation holds a special place in the hearts of the local people.
The inauguration ceremony was a source of great joy and celebration for the community, as the new healthcare facility promises to provide much-needed medical services to the people of Ndoni. The facility is built to provide a wide range of healthcare services, including maternal and child health, immunisation, family planning, and treatment for common illnesses. It is expected to significantly improve the health outcomes of the community, especially for women and children.
PAMO Educational Foundation’s unwavering dedication to enhancing the well-being of the Ndoni community and its environs is exemplified by the establishment of this health facility. The Foundation has consistently invested in initiatives that foster education and healthcare, and this new amenity is a testament to its ongoing commitment. PAMO’s rich history of supporting educational endeavours and healthcare programmes in the community has laid the groundwork for the Foundation’s continued contributions. The health resource stands as a beacon of hope, providing much-needed medical services and improving the quality of life for countless individuals.
Undoubtedly, the presence of dignitaries underscored the necessity of the event and the value placed on the health centre by the community and the state government. The Ndoni people expressed their profound gratitude to PAMO Educational Foundation and former Governor Odili for their generosity and commitment to the well-being of the community. They pledged to make good use of the health appliance and ensure that it served its intended purpose for many years to come.
The former health centre, a vital lifeline for the town and its neighbouring communities, fell victim to the relentless floods of the River Niger in 2020 and 2022. The torrential waters ravaged buildings, destroyed crops, killed livestock, and tragically claimed lives. In the wake of this devastation, residents were left without access to essential medical services, a cruel blow that compelled them to undertake arduous journeys to distant communities like Omoku for over two years. The old primary health amenity was erected during the administration of Odili and inaugurated  in 2008.
The unveiling of the new health institution brought a surge of palpable relief and gratitude to the beneficiaries. The modern facility, equipped with state-of-the-art apparatus and dedicated medical professionals, stood as a symbol of hope and resilience. It marked a new chapter in healthcare for the community, providing them with the means to access quality medical services in the comfort of their own surroundings. The trauma of the floods was slowly fading into memory, replaced by a sense of renewed optimism and a profound appreciation for the gift of healthcare.
Governor Fubara inaugurated the event, which provided a platform for reconciliation as numerous politicians who had previously distanced themselves from the current government were seen at the gathering, showing their support for Fubara’s administration. In his address, the governor thanked Dr Odili, the founder of the PAMO Educational Foundation, and a key political figure in the state, for standing by his administration in the wake of the political turmoil in the state.
He pledged his government’s support to the Ndoni people by enhancing the healthcare accommodation and highlighting Odili’s legacy as a valuable gift. The administration aims to provide quality education, healthcare services, and empowerment, including agriculture and human capital development. Fubara has already approved the recruitment of 1,000 medical doctors for primary health, Hospital Management Board, and Rivers State University Teaching Hospital to improve healthcare delivery and ensure the use of zonal hospitals in the state.
Odili praised Fubara for his humility and commitment to protecting Rivers people in line with the constitution, and encouraged him to focus on providing good governance. He said: “Politics is over, it is now time for governance and you have to hit the ground running, you have touched the critical sectors. In less than one year in office, you have touched education, you have touched health, but the key to what you have done so far is the focus on human beings, on the people, especially the poor amongst you. Human beings are the soul of society. So touching the lives of human beings is more important, you have started showing signs of that.”
We express our sincere gratitude to the former governor for his incredible determination in establishing the health facility. This admirable deed will always be remembered in history as a symbol of his unwavering dedication to the health of the people in our state. By generously donating his personal resources, he has shown true patriotism and a deep love for his community. His selfless actions have not only provided essential healthcare services but have also inspired others to do the same.
For the Ndonis, the inauguration of the health facility marks a critical milestone in the provision of accessible and affordable healthcare. It is an attestation to Odili’s visionary leadership and his unwavering belief in the importance of investing in the health and well-being of his people. We celebrate this Rivers son for his exceptional foresight and humanity. His legacy will be forever linked to this exceptional facility, which will continue to serve as a beacon of hope and healing for generations to come.
All the elites in our state should emulate Odili by embracing a spirit of collaboration with the government to foster the development of the state rather than disparage aimlessly. Needless criticisms, on the other hand, can hinder progress and create an atmosphere of distrust. While constructive animadversion is essential for holding leaders accountable, excessive or unfounded negativity can undermine morale and discourage alliance. If we focus on solutions rather than problems, we can create a positive and productive environment that attracts investment, promotes innovation, and ultimately leads to a better future for all.
Peter Odili’s exploit underscores the critical role private sector infrastructural initiative plays in enhancing the economic landscape of a state. He has not only bridged the gap between the government and private entities, but has also set a precedent for cooperation that fosters innovation, attracts investments, and creates job opportunities. These partnerships are vital for unlocking the untapped potential of the state, laying the foundation for sustainable development. The government’s recognition and support of the private sector as a driver of economic progress are essential. Rivers State can progress towards a future characterised by robust economic transformation and an improved quality of life for its people, if it emulates Odili’s example of promoting synergy.

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Editorial

For Peace In The M’East

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Tensions in the Middle East have been a cause for concern for decades now. The region has been plagued by conflicts, violence, and instability, with countries such as Israel, Iran, Iraq, Yemen, and Syria being at the centre of many disputes. The failure to resolve these concerns may have devastating consequences for the people living in the region. It also has what it takes to escalate into much larger encounters.
If the international community fails to act swiftly to end the hostilities, there is a real risk that a Third World War might ensue. The clashes in the region are perplexing and passionately rooted in historical, religious, and political distinctions. The inability to address these underlying matters and uncover peaceful solutions has only fueled the fire of discord and contentions among the nations involved.
The Middle East is a crucial geopolitical region, with significant reserves of oil and natural resources, as well as being a hotbed of religious and cultural diversity. The fracas in the region has far-reaching socioeconomic aftereffects. Any intensification in the brunt could have widespread upshot for global security, trade, and stability.
No one should take the probability of a Third World War arising from the region lightly. The use of nuclear weapons, the involvement of major world powers, and the potential for an expansive regional conflagration could have catastrophic backlash. The international community must unite to address the root causes of the apprehensions in the region and work towards sustainable solutions.
The ongoing feud between Iran and Israel suggests that there may be challenging days ahead for international peace. It is troubling that what started with Israel’s offensive on Iran’s consular building in Syria on 1st April may not end with Tehran’s Operation True Promise. The bombing in Damascus, which killed at least two top Iranian generals, resulted in the first-ever direct strikes launched against Israel from Iranian territory. The Jewish State’s recent reprisal for the Iranian onslaught may open a new vista in the conflict.
During the intrusion, Iran reportedly launched more than 300 missiles and drones. Almost all were annihilated by Israel’s air defences, augmented by forces from the United States, United Kingdom and Jordan. The Iranians had made their intentions clear, giving Israel and its allies time to prepare themselves, and quickly issued a statement at the United Nations in New York that their retaliation was over.
With the current war in Gaza between Israel and Palestinians, there are fears that the region is on the brink of an all-out war, with conceivably fatal aftermath. This is a defining moment in the Middle East. That is why it is right for world leaders to pressure Israeli Prime Minister, Benjamin Netanyahu, to exhibit restraint. Then both Israel and Hamas could engage in talks to free Israeli hostages and end hostilities.
In addition to the Israel-Palestine strife, the civil wars in Syria and Yemen have further exacerbated the crisis in the region. The fray has resulted in massive deracination of people, extirpation of infrastructure, and loss of lives. The international community must seek a political solution to these inessential wars and provide humanitarian abetment to those affected by the violence.
Moreover, the rise of extremist groups such as ISIS has also destabilised the region, posing a threat to global security. Nations in the locale and beyond should interface and combat terrorism and extremism. A coordinated effort is required to address the very causes of the commination, such as poverty, lack of education, and political marginalisation. Clearly, the status quo in the bailiwick is unsustainable. A new approach is vital to end the dire straits in the region.
Intense diplomatic endeavours, dialogue, and cooperation are cardinal in resolving the impasse in that portion of the world. The use of military force or unilateral actions will only further escalate the situation and increase the risk of a larger conflict. It is time for all parties involved to set aside their disparities, and build a stable future for the Middle East.
Global amity is indispensable for the well-being of all individuals and nations. It is the foundation upon which sustainable development, economic prosperity, and human rights can thrive. The United Nations was established with the primary goal of advancing peace and security among countries, and it is obligatory that the organisation achieves this objective.
Super powers should animate collaboration and diplomacy to attain harmony. These nations have the wherewithal to make necessitous strides in promoting stability and security on a global scale if they set aside political dissimilarities and focus on common goals. Through open communication and mutual respect, super power countries can lead by example and inspire other nations to follow suit in creating a more nonbelligerent world for present and future generations.
Efforts must be made to avert a Third World War. Its idea is deeply disturbing and contentious. It is one that evokes fear, uncertainty, and global disquietude. The possibility of such a cataclysmic event occurring is something that many would rather not think about, yet the signs and anxieties among countries are becoming increasingly apparent. States must be vigilant, proactive, and committed to building a better future for the world.

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Editorial

Governor’s Pension Law Repeal, Otti’s Example 

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Abia State’s decision to repeal the governor’s pension law is a momentous move towards cutting down on
the expenses of governance and focusing on the welfare of pensioners in the State, who were last paid in 2014. Governor Alex Otti’s bold action in overturning this law demonstrates a dedication to financial prudence and transparency. This resolve will help in reducing the financial burden on the State.
Pension for governors and their deputies has been a contentious topic in Nigeria, with concerns raised about the ethics and morality of providing lifetime benefits to public officials who may only serve a limited term in office. Abia State has taken a bold step by repealing this law, setting a positive example for other States to follow. This move has sparked a much-needed conversation about the need for accountability and responsible governance in the country.
Governor Otti’s argument for repealing the governor’s pension law to alleviate the financial burden on the State and address the issue of unpaid pensions for Abia’s retirees is compelling. By prioritising the needs of the people over political considerations, Governor Otti is demonstrating strong leadership and a commitment to serving the best interests of the citizens.
The Abia State Governors and Deputy Governors Pension (Repeal) Law of 2024 has been widely reproached for its excessive provisions for former office holders. Not only does the law guarantee former governors and former deputy governors 100 per cent of the operative salary of their successors, but it also includes the provision of three police officers and two Department of State Services officers for life. Additionally, the State is responsible for paying for their domestic staff and building mansions for them in both their home State and in Abuja.
Proponents of these benefits assert that they are necessary to ensure that former governors are appropriately provided for after their tenure in office. They maintain that these benefits are in line with the sacrifices and responsibilities that come with holding a public office. Furthermore, supporters of the entitlements contend that these provisions are intended to attract qualified individuals to compete for gubernatorial positions, with the assurance that their welfare will be looked after once they leave office.
Despite efforts to eliminate these schemes in some States, about 18 States still retain pension for their former leaders, which many Nigerians view as a form of political hedonism. Zamfara set a precedent in 2019 by eliminating its pension law, signaling a shift away from the traditional practice of providing lucrative benefits to former governors and their deputies. Many other States continue to operate this practice, allowing former leaders to receive substantial pension and other perks even after leaving office.
In 2020, both Lagos and Kwara States announced their intentions to scrap their pension laws, acknowledging the increasing public outcry over the issue. Kwara went a step further by officially abrogating the law in January, 2021, demonstrating a commitment to reforming the system and promoting accountability. Meanwhile, Lagos took a more gradual approach by reducing the benefits for former leaders by 50 per cent in August , 2021. This move was perceived as a compromise between completely abolishing the scheme and maintaining the status quo.
According to the World Poverty Clock and the National Bureau of Statistics (NBS), Nigeria has been listed as the poverty capital of the world, with millions of people living in extreme poverty. The fact that States would continue to record more ex-office holders after every tenure only adds to the financial strain of these pension schemes. With the number of former office holders increasing each year, the costs associated with their pension become unsustainable for many States.
The funds that could be allocated towards alleviating poverty and improving infrastructure are instead being spent on providing lavish retirement benefits for a select few. The current pension schemes for ex-governors in Nigeria are not sustainable in the long term, especially in the face of the present economic realities. Reforms are needed to ensure that public funds are used more efficiently and effectively, and that the needs of the most vulnerable in society are given preference over the comfort of former government officials.
Pension for former governors often result in the enrichment of the wealthy elite at the expense of the struggling masses. These politicians typically only served in office for a maximum of eight years, yet, they are able to secure generous pension that allow them to maintain a life of luxury. Some even go on to hold positions as Ministers or Senators, further perpetuating their unjustified wealth.
Curiously, the 10th National Assembly is home to more than 12 former governors who continue to benefit from these lavish retirement benefits. In stark contrast, many public workers dedicate 35 years of their lives to serving the public and the government, only to receive meagre pension or sometimes none at all. Tragically, some pensioners pass away before ever receiving the benefits they are owed.
Other States should look to Abia State as a model for promoting democratic values and accountability. The active participation of civil society organisations, pressure groups, taxpayers, and activists is critical in upholding the principles of democracy and ensuring that the government is accountable to the people. The scandalous pension laws that have been passed in many States are not only unjust but also a detriment to the democratic process.
Nigerians should engage with their legislators and demand the immediate annulment of these obnoxious laws that serve to enrich a select few at the expense of the public. Citizens can help ensure that their voices are heard and that their rights are protected by actively participating in the legislative process and holding their representatives accountable. Abia is a constant reminder that democracy is a continuous process that requires the active involvement of all.

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