Opinion
On Forex Restriction Policy
When on June 23, 2015, the immediate past federal government, through a circular from the Central Bank of Nigeria, CBN, placed a ban on forex in the Nigerian Foreign Exchange Market for 43 items, some Nigerians raised concern on the possible effect of such restriction on the nation’s economy.
They advised that forex restriction on rice, cement, margarine, palm kernel, palm oil products, vegetable oils, meat and processed meat products, vegetables and processed vegetable products; poultry and processed poultry products; tinned fish in sauce (geisha)/sardine; toothpicks and many more could contribute to inflationary pressures as there would be limited availability of foreign exchange for these essential goods, adding that when businesses face higher costs for imports, these costs often get passed on to consumers through increased prices for locally produced goods and services.
It could be recalled that some economists appeared on interview programmes on the media, educating that forex restrictions could create instability in the foreign exchange market, as the demand for forex may exceed its supply. This they said could lead to multiple exchange rates, with a significant gap between the official exchange rate and the parallel market rate, which can deter foreign investors and distort the economy.
Some people in the manufacturing sector warned that forex restrictions could lead to shortages of imported goods, including essential commodities and critical inputs for manufacturing and that businesses might struggle to maintain production, leading to supply disruptions and affecting employment and economic growth.
They warned that the policy would impact negatively on businesses as industries that rely heavily on imported raw materials or machinery could face operational difficulties, reduced production, and increased costs, which could lead to job losses and lower economic growth
Some other citizens were worried that forex restrictions would lead to the growth of black markets, where foreign exchange is traded at unofficial rates and could create opportunities for illegal activities and capital flight; that the policy could discourage foreign investors, as they could find it challenging to repatriate their profits and may be concerned about the business environment’s unpredictability; that over time, forex restrictions can deplete a country’s foreign exchange reserves, making it more vulnerable to external shocks and economic instability.
Incidentally, the government paid a deaf ear to these warnings. They claimed that restricting the items from accessing FX from investors and exporters (I & E) window was aimed at reducing foreign exchange demand for products that could be locally produced, improve employment generation and conserve foreign reserves as well as protecting and growing the local industries.
Today, eight years later, amidst the constant downward sliding of the nation’s currency, scarcity of forex and a collapsing economy, the forex restriction is lifted by the same apex bank that said the forex restriction policy was the ultimate and would take the nation’s economy to Eldorado.
Sometimes, it is difficult to understand the reasons behind some government’s actions and policies. Could it be for their selfish reasons, religious, political, tribal considerations or what? Is it in the interest of the nation and the citizens as they always claim? What has the general masses benefitted from the constant policy summersault other than economic hardship, increased poverty, hunger and the likes?
It is good that the House of Representatives had resolved to invite the Governor of CBN, Olayemi Cardoso, to give clarifications on the forex lifting policy and its implications on the economy. Let him go and explain to the nation how the latest policy will improve the nation’s economy and better the lots of the people. What will the increased demand for dollars, an inevitable result of the policy, do to our local economy?
What will be his answer to the fears expressed by the law makers and indeed many other Nigerians that the policy will impact negatively on the indigenous industries? Will it put more pressure on the scare forex, impact negatively on the indigenous industries and have an adverse effect on the already poor economy generally? Will it make it difficult for Nigeria to be competitive in the African Continental Free Trade Area because the markets will be flooded with imported finished goods as the law makers opined?
However, much as one identifies with the reason for some people’s pessimism over the lifting of the forex ban, it is imperative that we interrogate the gains of the ban while it lasted from 2015 till two weeks ago. How much changed throughout the period of banning of those items? Did it lead to the growth of the local industries as envisaged? How much attention and financial support was given to these industries to reinvigorate them?
Yes, it could be said that the policy led to the drive to bolster the production of local rice. The commitment of Muhammadu Buhari’s administration towards ensuring self-sufficiency in rice was very visible. The partial closure of the western border with Benin to curb rice smuggling, the anchor – borrowers programme of the CBN were some of the government’s attempt to boost local production even though it did not result in rice pyramid as Buhari and former CBN Governor, Godwin Emefiele claimed.
Apparently, these interventions did not lead to the availability of rice and at affordable price. We recall the former Minister of Agriculture and Rural Development, Audu Ogbeh, boasting in 2019 that the price of 50kg bag of local rice will crash from N18,000 to N13,000. That was never to be. Today, it goes for between N45,000 to 52,000 depending on the brand and your location.
The familiar problems of insecurity, high cost of energy, poor infrastructure, near nonexistent power, inadequate funding, irregular taxes, high exchange rate, unfavourable government policies and many more, made and still make the cost of production of the previously forex banned items very high. You can imagine farmers in some northern states paying bandits up to N1.7million annually as tax and harvest fees before they can have access to their farms and avoid being abducted as reported in the media.
The President of the Manufacturers Association of Nigeria (MAN), Francis Meshioye, recently disclosed that the unrelenting increase in production costs is posing a serious threat to the existence of the manufacturing sector. He said, “Currently, the cost of manufacturing is daily rising, owing to scarce and unavailable manufacturing inputs that continue to shrink profitability and threaten the existence of the critical sector of the economy.
“More worrisome is the fact that the sector that should propel job creation, productivity, and economic growth is enmeshed with a series of challenges that constantly limit its contribution to the Gross Domestic Product.”
Therefore, the law makers should not stop at inviting the CBN governor. They should come up with good legislations that will help in tackling these challenges. They should collaborate with the executive arm of government to save the economy from collapsing.
The legislators should also demonstrate their desire to see the economy bounce back by sacrificing some of their luxuries. They should discourage the executives from obtaining foreign loans to be shared to them and to buy exquisite cars for them or to be shared to the so called 15 million families for feeding for three months.
These monies should be channelled into subsidising power, provision of infrastructure, quality health care to the poor masses and in other avenues that will boost the economy.
Someone recently said that the government does not need advice on how to revive the nation’s economy and that is true. The economy is currently being driven by renowned economic experts. They have launched the 8-point agenda of President Bola Tinubu in addition to other policy reforms and beautiful ideas on how to make the economy vibrant again. What is needed now is for them to walk the talk.
By: Calista Ezeaku
Opinion
FG’s Transport Support And Rivers Workers
The Federal Government’s approval of a N70,000 monthly transport intervention for public service workers for six months, beginning in November 2026, offers hope to employees struggling with the rising cost of living. The agreement with the Nigeria Labour Congress (NLC), reached at a conciliation meeting in Abuja on October 27, is intended to cushion transport costs and ease pressure on workers’ incomes. But for public servants in Rivers State, it raises a familiar question: will the State Government key into the intervention and ensure that its workers benefit? The agreement provides for N70,000 monthly across all levels, for six months. The Federal Government also approved peculiar allowance arrears effective from May 1, 2026, to be paid in three equal instalments beginning in November.
The parties agreed to reconvene after one month to assess implementation. Ultimately, the value of these resolutions will be measured not by announcements but by whether eligible workers receive the money. Transport costs consume a substantial share of many civil servants’ earnings before they can meet household needs. Support for commuting is therefore not a luxury or political favour; it is temporary assistance to help workers remain at their jobs without sinking further into hardship. For lower-paid employees, transport costs can turn modest salaries into a daily exercise in difficult choices and sacrifice.
The agreement also urges State and Local Governments to participate and unions to press for implementation. The federal agreement does not automatically guarantee that every State and Local Government employee will receive the support. State authorities must clarify how it will apply to their workforce, make the necessary arrangements and publish a payment timetable. Rivers State must approach the arrangement with urgency and transparency. The Government should State whether it will implement the intervention and when payments will begin. Any administrative or financial question should be addressed promptly with organised labour, not allowed to become excuses for delay.
The concern is sharpened by the earlier N35,000 monthly wage award introduced by the Federal Government in 2023 after petrol subsidy removal. It was intended as temporary relief pending a new national minimum wage. While several States negotiated and paid wage awards or related sums, implementation nationwide was uneven. Reports in 2024 indicated that many States had failed to pay the federal award, while others provided different amounts. In Rivers, labour and media reports raised concerns about implementation of the N35,000 award for State workers, amid separate announcements and arrangements concerning Local Government employees.
The wage award was meant to ease the immediate effects of subsidy removal, yet workers faced uncertainty over whether the promised relief would reach them. In February 2024, the Rivers State Government announced approval of the N35,000 award for local government workers, but subsequent reports showed that implementation across worker categories remained a concern. The lesson is clear: approval and implementation are not the same. A declaration at a meeting offers little comfort to a worker whose account does not reflect the promised payment. For workers who travel to their offices daily, the implications of delayed support are significant. Transportation expenses compete with food, rent, school fees, healthcare and other essential household needs.
As fares rise, employees may be forced to reduce spending on necessities or borrow to sustain their families. A timely transport intervention would therefore provide practical relief and demonstrate that government understands the economic pressures confronting its workforce. Its temporary nature makes prompt implementation even more important. It is fair to acknowledge that this transport intervention is a new agreement and that its administrative details may require clarification. Rivers State should not be condemned in advance for a failure that has not occurred. Nevertheless, the earlier experience gives workers legitimate grounds to seek assurances before the November commencement date. The State should avoid allowing uncertainty to persist until workers begin asking why the promised assistance has not arrived.
The NLC and unions in Rivers State should engage the State Government immediately and seek a written commitment, an implementation plan and a process for reporting missed payments. If clarification from the Federal Government is needed, the State should seek it without abandoning the goal of providing relief. Labour leaders must also keep members informed about progress and insist that any agreed arrangements are applied fairly and transparently. The Rivers State Government should treat this intervention as an opportunity to rebuild confidence. Timely support would show that workers’ welfare is more than a talking point and that the State recognises the economic realities confronting its employees.
Silence, delay or selective implementation, by contrast, would revive frustration over earlier relief measures and weaken trust between government and labour. Every month lost to administrative delay leaves workers facing the same transport burden without the intended assistance. The State should consult labour, publish arrangements and pay eligible workers on time. Rivers workers should not have to wonder whether federal relief will reach them. The Federal Government has announced the support; now the State must make its position clear. We hope the N70,000 monthly transport intervention will not follow the troubling path of the earlier wage award. Rivers State should learn from that experience and ensure that this time, relief is not merely promised but delivered.
Sylvia ThankGod-Amadi
Opinion
Ancestorial Worship: My Take (1)
Everyday, Christians call on Abraham, Isaac and Jacob as they pray to God in the privacy of their homes across our multicultural, multiracial and multiethnic world. On Sundays and almost everyday of the week in the new-found full freaking fanaticism in Pentecostalism, they gather in the more than four million churches or congregations in the world to worship God, invoking the spirits of the ancestors of Jews. Meanwhile, in the scaremongering antics of institutional religion, the African has allowed himself to be hoodwinked into believing that invoking the spirit of his ancestors in prayers is idolatry and patently evil. He is mind-controlled into believing that indulgence in what the Christian clergy calls ”Satanic Act” is a sure ticket to Hell, where the individual is tormented, burnt and charred till eternity on the orders of a loving Father; what a laughable irony.
Come with me on my experience of what the Christian clergy contemptuously calls ancestorial worship. One Monday in September 1988, I drove from Port Harcourt to Owerri, accompanied by Chief AM Abasi who was the general manager of Delta Holdings Ltd, a company owned by Chief Ranami Abah, (Abadifeni III). Our mission was a meeting with Mr. Nwaorgu, the marketing manager of 33 Breweries Ltd for a dealership for Mrs. Alice Abah, whose husband, Chief Ranami Abah, had substantial equity shareholding in 33 Breweries Ltd. At the end of the meeting, we agreed to return on Wednesday with Mrs Alice to sign a contract for the dealership. When Chief Abasi and I stepped out to the parking lot, it hit me that I could not recollect how I drove from Port Harcourt through Igwuruta, Isiokpo and Elele to Owerri.
First, I waved the feeling off, ascribing it to the aerodynamic and slippery nature of the super slick German machine, a Mercedes-Benz 280 SLC convertible owned by Chief Ranami Abah. But on a second thought, I sensed a premonition; an ominous feeling. Then a sense of foreboding hit me, leaving me with the chilly feeling that something wrong was in the air. For a person who does not know fear as a result of having had out-of-body experience (OBE) in 1975 and considering the threshold of death the most beautiful experience in my life, it was a very worrisome feeling, to say the least. I quickly shook those thoughts out of my head, engaged the gear of the ever-ready German machine and zapped through Owerri traffic, attracting the same attention that trailed us all the way from Port Harcourt.
At Control Post, an inner voice instructed me not to return to Port Harcourt through the route we came. In reflexive obedience to the mysterious inaudible voice, I turned right (northwards) and stepped heavily on the gas. The straight six-cylinder engine roared in dutiful obedience; the automatic transmission immediately dropped into a lower gear, thereby giving the engine a very powerful pull that enabled the small-bodied car to dust every other vehicle on the road. Through the rear view mirror, I saw the vehicles we overtook recede speedily and virtually disappear behind us. In almost a whisper, Chief Abasi asked if I wanted to visit the 33 Brewery factory at Awo Omamma; I said ”no” without explaining the movement in the opposite direction of our journey.
Strangely, Chief Abasi did not pry further. We raced on, northwards; in thunderous silence. At Ogbaku junction, I turned left, drove westwards past Ejemekwuru and Izombe, turned left at Oguta and headed southwards on the Oguta Lake–Egbema–Omoku–Ahoada Federal Road. Carefully navigating the potholes that generously punctuated the road vis-a-vis the very low clearing of the car, I entered Egbema territory at Opuoma, drove through Mmahu, Abacheke, Okwuzi and turned eastwards to Mgbede, my home town. There, I quickly introduced Chief Abasi to my parents, left him with them and briskly walked a few metre to the grave of Osai, my grandfather. At the graveside, I solemnly told Osai that I sense something wrong in the air.
Then, in furious rage, I threatened him and my uncle, Lazarus, who lay beside him, that if they remained sleepy-eyed in that dimension and I am forced out of this world, that I will scatter their ribcage with penknife. My cousin and age mate, Luke Ofere, came out of his house and asked what was wrong and why I was in tears. With hot tears running down my cheeks, I turned around and left the graveside without a word to him; shock, surprise and confusion were boldly written on his face. On my way back to my father’s house, Nze Romanus Ogboh caught up with my brisk strides and, viciously pulling his right ear, he warned me to be careful on the road; that he dreamt that I died in a motor accident but that he administered a potion on me and I came back alive.
He was completely confused when I replied ”I know” and continued walking in tears towards my father’s house without a further word. Still in the holy rage, I called out Chief Abasi to join me in the car. Back to Port Harcourt through Omoku, Ahoada, Elele Alimini and Emohua, I told my spouse that something wrong is certainly around the corner. As we planned, Chief Abasi travelled to Calabar on Tuesday to inform Auntie Alice of the development and request her to come to Port Harcourt on Wednesday for onward journey to Owerri to effect the dealership contract. On Wednesday, I waited for them but they did not show up. I called Chief Abah and complained about the development. Thursday morning, they pulled up in front of my apartment in a blue Peugeot 504.
To be continued in our next edition.
Jason Osai
Osai lectures in Rivers State University.
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