Editorial
Halt Naira Slide, Now
Recently, the Nigerian naira sharply declined to an unprecedented rate of N955 per dollar, causing widespread concern and hysteria in business circles and among many Nigerians. President Bola Tinubu and the Central Bank of Nigeria (CBN) must take innovative and pragmatic measures, swiftly to stave off further damage to the currency and the economy. Acting decisively is paramount to restore stability and confidence.
The economy is troubled with negative signs, worsened by Tinubu’s decision to merge exchange rates. Establishing a more realistic exchange rate and reducing the arbitrage gap has proved challenging. The official exchange rate of N767.76/$ has failed to bridge the gap, leading to an increase from N100/$ to N200/$ and creating space for illegal arbitrage. This raises anxieties about the stability and integrity of the Nigerian currency, necessitating urgent action.
Nevertheless, after a meeting between President Tinubu and Acting CBN Governor, Folashodun Shonubi, to deliberate on the condition of the foreign exchange (FX) market, a momentary respite appears to have emerged for the ailing currency. The naira witnessed a modest upturn, hovering around N880/$. Despite recent improvements, experts voice apprehensions regarding the long-term viability of this progress.
After rising inflation rates and declining business activities, concerns grew over the naira surpassing the exchange rate of N1,000/$ and losing value quickly, which could have profound repercussions for the CBN. The International Monetary Fund (IMF) deepened these troubles with its recent statements highlighting the challenges the naira face following loose fiscal and monetary policies. These events have raised valid considerations about the apex bank’s ability to stabilise the weakening currency.
Tinubu’s economic adviser and current Finance Minister, Wale Edun, emphasises the need for a practical exchange rate of N700/$ for the naira. Edun argues that higher rates lack support from the fundamental aspects of the economy. This contrasts with The Economist Intelligence Unit’s projection of a stable N1,000/$ rate until 2027, which seems overly optimistic. Edun’s perspective raises fears about the potential consequences if timely interventions are not implemented.
As a result of decreased non-oil export revenues, the projection could be accurate as the supply is constrained. The current demand is artificially driven by unregulated money laundering activities, including speculators, hoarders, and both state and non-state actors. It is disturbing that the market relies on ill-gotten naira acquired by politicians, public officials, bandits, kidnappers, and associated contractors, rather than legitimate producers or genuine businesses. The situation is worsened by the lack of strict oversight on deposit banks and money exchange enterprises.
Tinubu needs to transition from inconsistent, poorly devised, and disorganised choices to strategic, well-devised, and comprehensive economic policies. The current state of the economy requires immediate attention and effective decision-making. To achieve this, he must form a strong Economic Management Team consisting of economists and technocrats instead of solely relying on miscellaneous politicians as ministers. This shift will ensure that economic policies are grounded in sound analysis and expertise, resulting in sustainable growth and development.
To stabilise the naira and prevent hyperinflation, the CBN must take specific actions. It should ensure sufficient funding for the forex market to maintain a steady supply of foreign exchange and discourage speculation. Also, the apex bank needs to enforce strict regulations and monitor bureaux de change operators and banks to prevent round-tripping and illegal arbitrage. Lastly, a closer collaboration between the CBN, regulatory agencies, and law enforcement is necessary to monitor and punish any infractions swiftly.
An economy facing high unemployment, inflation, production contraction, and dwindling public revenues needs a strong stimulus package. The focus should be on protecting key sectors like agriculture, pharmaceuticals, transportation, and small businesses. Pay particular attention to small and medium-sized enterprises (SMEs), which drive economic growth and employment. Support SMEs by subsidising power supply, providing access to low-interest credit, and reducing taxes and levies.
As we face economic challenges, tough decisions await us. Before making these decisions, it is critical to carefully diagnose and adequately prepare. The shortage of dollars has led to the control of goods by black-market operators, hindering the goal of reducing the gap between official Importers and Exporters rates and the parallel market rates. Temporarily strengthening the market and protecting the naira is essential. By channelling resources towards legitimate businesses, the Federal Government can halt the national currency’s decline.
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Strike: Heeding ASUU’s Demands
Editorial
Making Rivers’ Seaports Work
When Rivers State Governor, Sir Siminalayi Fubara, received the Board and Management of the Nigerian Ports Authority (NPA), led by its Chairman, Senator Adeyeye Adedayo Clement, his message was unmistakable: Rivers’ seaports remain underutilised, and Nigeria is poorer for it. The governor’s lament was a sad reminder of how neglect and centralisation continue to choke the nation’s economic arteries.
The governor, in his remarks at Government House, Port Harcourt, expressed concern that the twin seaports — the NPA in Port Harcourt and the Onne Seaport — have not been operating at their full potential. He underscored that seaports are vital engines of national development, pointing out that no prosperous nation thrives without efficient ports and airports. His position aligns with global realities that maritime trade remains the backbone of industrial expansion and international commerce.
Indeed, the case of Rivers State is peculiar. It hosts two major ports strategically located along the Bonny River axis, yet cargo throughput has remained dismally low compared to Lagos. According to NPA’s 2023 statistics, Lagos ports (Apapa and Tin Can Island) handled over 75 per cent of Nigeria’s container traffic, while Onne managed less than 10 per cent. Such a lopsided distribution is neither efficient nor sustainable.
Governor Fubara rightly observed that the full capacity operation of Onne Port would be transformative. The area’s vast land mass and industrial potential make it ideal for ancillary businesses — warehousing, logistics, ship repair, and manufacturing. A revitalised Onne would attract investors, create jobs, and stimulate economic growth, not only in Rivers State but across the Niger Delta.
The multiplier effect cannot be overstated. The port’s expansion would boost clearing and forwarding services, strengthen local transport networks, and revitalise the moribund manufacturing sector. It would also expand opportunities for youth employment — a pressing concern in a state where unemployment reportedly hovers around 32 per cent, according to the National Bureau of Statistics (NBS).
Yet, the challenge lies not in capacity but in policy. For years, Nigeria’s maritime economy has been suffocated by excessive centralisation. Successive governments have prioritised Lagos at the expense of other viable ports, creating a traffic nightmare and logistical bottlenecks that cost importers and exporters billions annually. The governor’s call, therefore, is a plea for fairness and pragmatism.
Making Lagos the exclusive maritime gateway is counter productive. Congestion at Tin Can Island and Apapa has become legendary — ships often wait weeks to berth, while truck queues stretch for kilometres. The result is avoidable demurrage, product delays, and business frustration. A more decentralised port system would spread economic opportunities and reduce the burden on Lagos’ overstretched infrastructure.
Importers continue to face severe difficulties clearing goods in Lagos, with bureaucratic delays and poor road networks compounding their woes. The World Bank’s Doing Business Report estimates that Nigerian ports experience average clearance times of 20 days — compared to just 5 days in neighbouring Ghana. Such inefficiency undermines competitiveness and discourages foreign investment.
Worse still, goods transported from Lagos to other regions are often lost to accidents or criminal attacks along the nation’s perilous highways. Reports from the Federal Road Safety Corps indicate that over 5,000 road crashes involving heavy-duty trucks occurred in 2023, many en route from Lagos. By contrast, activating seaports in Rivers, Warri, and Calabar would shorten cargo routes and save lives.
The economic rationale is clear: making all seaports operational will create jobs, enhance trade efficiency, and boost national revenue. It will also help diversify economic activity away from the overburdened South West, spreading prosperity more evenly across the federation.
Decentralisation is both an economic strategy and an act of national renewal. When Onne, Warri, and Calabar ports operate optimally, hinterland states benefit through increased trade and infrastructure development. The federal purse, too, gains through taxes, duties, and improved productivity.
Tin Can Island, already bursting at the seams, exemplifies the perils of over-centralisation. Ships face berthing delays, containers stack up, and port users lose valuable hours navigating chaos. The result is higher operational costs and lower competitiveness. Allowing states like Rivers to fully harness their maritime assets would reverse this trend.
Compelling all importers to use Lagos ports is an anachronistic policy that stifles innovation and local enterprise. Nigeria cannot achieve its industrial ambitions by chaining its logistics system to one congested city. The path to prosperity lies in empowering every state to develop and utilise its natural advantages — and for Rivers, that means functional seaports.
Fubara’s call should not go unheeded. The Federal Government must embrace decentralisation as a strategic necessity for national growth. Making Rivers’ seaports work is not just about reviving dormant infrastructure; it is about unlocking the full maritime potential of a nation yearning for balance, productivity, and shared prosperity.
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