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On  Forex Restriction Policy

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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

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Lagos-Calabar Highway  Must Wait

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Had the Presidency not responded to the allegations of the former Vice President, Atiku Abukakar, concerning the process of awarding of the contract for the Lagos-Calabar Coastal Highway, it would have been most surprising. People must do the job for which they were employed and that includes ensuring at all costs that their principals and their families are constantly blameless and spotless.
Atiku, through  his Media Adviser, Paul Ibe, had alleged that President Bola Tinubu’s son, Seyi Tinubu,  being a board  member of one of the firms  owned by Gilbert Chagoury, the owner of Hitech, the contractor that was awarded the contract  constitutes a conflict of interest; that the contract was awarded in contravention of the procurement laws, that it is being done in a hurry purely because of the business relationship between President Tinubu and Gilbert Chagoury, that the project is  expensive, ill timed  among others.
But in a swift response the presidency through a statement by the Special Adviser to the President on Information and Strategy, Bayo Onanuga, countered Atiku’s claim, saying that as an adult Nigerian, Seyi has the right to do business in the country and that his membership of the board of CDK in no way constitutes a conflict of interest.
Onanuga went down the memory lane, recounting how the former Vice President had revealed that he formed Intels Nigeria with an Italian businessman when he was serving in the Nigeria Customs Service, which in his view is a clear breach of extant public service regulations; how, as Chairman of the National Council on Privatisation, Atiku approved sales of over 145 State-owned enterprises to his known friends and associates and openly said during his failed campaign for the presidency last year that he would do the same, if elected.
The Special Adviser dwelt so much on Atiku’s past that he probably forgot to address some other key issues raised by the former VP about the Lagos-Calabar Coastal Highway project which had also been harped on by several other Nigerians. First is the issue of the contract’s awarding process and priority. Nigerians needed to hear directly from the presidency whether this huge project went through a competitive bidding process as required by law or not.  Section 16 (1) (c) of the Public Procurement Act 2007 provides that “All public procurement shall be conducted by open competitive bidding.” Section 16 (1) (d) stipulates that all public procurement shall be done in a transparent, equitable manner to ensure accountability. Was the contract awarded in compliance with this and other relevant laws?
There is also the issue of the highway project not complying with the Environmental Impact Assessment Act. The Pan-Yoruba Socio-Political Organisation, Afenifere, had through Prince Jide Faloye of its Publicity Department joined some other groups and individuals to raise concern about the serious issue. The organisation said, “The Lagos-Calabar Coastal Highway project must be re-examined, for not only breaching competitive tendering stipulations but for also contravening the Environmental Impact Assessment Act, as stipulated in EIA Decree No. 86 of 1992, which places the project type in Category 1 and affecting the natural environment, making an ESIA report mandatory before commencement.”
Afenifere also noted that, “the $13 billion Lagos-Calabar project is not only environmentally and economically destructive, but also irrationally replaces the 1,400km $12 billion Lagos-Calabar railway project along East-West Road, adjudged to be the single most important economically empowering infrastructural development project in Southern Nigeria in over 100 years, commissioned by both the Jonathan (2014) and Buhari (2021) governments.”
Convincing explanations to their salient concerns are what Nigerians want from the presidency, the Minister of Works, Dave Umahi and other relevant authorities instead of them resorting to name calling and describing the views as “ intrinsically superficial, baseless, self-serving and politically motivated to imprint malice in the minds of unsuspecting members of the public, especially the gullible”, as the Special Adviser (Media) to the Minister of Works, Orji Uchenna Orji did in a statement a few days back.
Government is all about the people. Fortunately, Nigeria is operating a democratic system of government widely known to be the government of the people, by the people and for the people. Therefore, the leaders put in power by the people should listen to the people and should always prioritise the interest of the people.
And talking about priority which was among the issues raised by Atiku, is the Lagos-Calabar highway the most critical need of the country right now? Yes, the road when completed will be of immense benefit to the coastal states and the country in general. Economic growth, easy transportation, improved quality of life will be assured, but is that what we need now in Nigeria?  Two weeks ago, Rivers State and the entire nation were thrown into mourning as a result of the vehicular accident that happened in the Eleme axis of the East-West which claimed several lives and damaged property. The lamentation of many people, including the State Governor, Siminalayi Fubara, was that the accident and the great losses could have been avoided had the road been fixed.
The about 328-kilometer road which was awarded in 2006 by the then President, Olusegun Obasanjo, and meant to be completed in 2010 is yet to be completed despite the billions of Naira that has gone into it. The Enugu-Onitsha road, Makurdi-Enugu road, Port Harcourt-Enugu express road and many other federal roads across the country have long become death traps. People have protested, demonstrated, appealed to the authorities to have them fixed, yet little or nothing has been done on most of them.
Could it not have been better to fix these roads before embarking on a new road that will cost nothing less than N2.8 trillion? A ready answer by the works minister and other government functionaries might be that N300 billion was provided in the 2023 supplementary budget to address the poor federal roads but how far can that go?
There is undoubtedly nobody in Nigeria that is not feeling the pinch of the current harsh economic realities in the country. Prices of food and other items in the market keep skyrocketing every day. The cost of transportation has quadrupled since May 29 when the announcement that “subsidy is gone” was made. For some weeks, there has been fuel scarcity in Abuja and other parts of the country which the Nigerian National Petroleum Corporation Limited (NNPCL) blamed on “logistic issues”.
The NNPCL keeps shifting the goal post on when Port Harcourt, Warri and Kaduna refineries will become operational. The latest being that the Port Harcourt Refinery will start functioning by the end of March. In the second week of March, the Group Chief Executive Officer (GCEO) of the (NNPC) Mele Kyari, reportedly told the senate ad hoc committee investigating the various turnaround maintenance (TAM) projects of Nigerian refineries that, “In the next two weeks, production will start. We did mechanical completion of  Port Harcourt Refinery, that was what we said in December 2023,”
“That means we are done with our rehabilitation work, now you are to test if this completion is okay.” Has this happened?
The point is that the federal government should suspend the massive, flamboyant Lagos-Calabar coastal highway project pending when the economy is up and running and some critical infrastructure in the country are adequately attended to. If part of  this huge sum could be used to build new refineries and make the old ones bounce back to life, Nigeria will be on the way to achieving energy security which will impact positively on every sector of the economy and the lives of the citizens. Efficient and transparent use of the nation’s scarce resources is an important quality that our leaders must imbibe.

Calista Ezeaku

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Ethnic  Nationalities: Key To True Nationhood?

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Nigeria, forced into serving as a large theatre of the absurdities, is unceasingly offering pig-ignorant theatrics, for amusement, in the midst of series of dreadfulness requiring serious attention. Perhaps, this is why Nigeria is considered, in some quarters, to be a huge joke; they may actually be right. Sincerely, there are many jokers here. Hence, there is continuity in entertaining and lulling those expected to engage in perpetual vigilance to sleep. Unfortunately, both the comedians and audience appear permanently unserious. The audience particularly appears incapable and/or unwilling to pick out, and act on, some sense from apparent senselessness. After all, not all senseless acts offer outright senselessness. For decades, especially since January, 1966, the quest for nationhood in Nigeria (if there is still any modicum of genuineness in it) has been unsuccessful. Before the 1914 amalgamation, the imperial British government, being already in control of a small Niger Coast Protectorate, purchased the territories which eventually became Nigeria, specifically in 1899, for £865,000 from George Dashwood Taubman Goldie (1846–1925) and his Royal Niger Company. Interesting! Was Nigeria treated as a commodity at a point? It appears so! Is it still commodified? You should answer that! So, might was right; and it still is, at the present? Over the years, many people in Nigeria have been enabling and reinforcing cracks and failures.
The poor in Nigeria have been empowering and strengthening those enslaving and punishing them! We wish all the disenfranchised, that have been working hard on lawful undertaking with zilch to show for it, happy 2024 International Workers’ Day!
Like it is said colloquially in Nigerian pidgin “Monkey dey work, baboon dey chop.” This is Nigeria’s current reality but if it is considered a problem, the solution is not unavailable for the serious-minded. Regrettably, the country has been bedevilled with a “leadership” cadre that believe in repressing the people. Of course, this is a recipe for dissenting voices. It is for rebellious actions. On 13th April, 2024, a group of armed persons suspected to be Yoruba Nation agitators (in ‘military’ camouflage) were alleged to have invaded the Oyo State House of Assembly Complex. Concerning the camouflage, Fela Anikulapo-Kuti (1938–1997) says “uniform na cloth, na tailor dey sew am.” Anyway, news reports have it that they lowered the Nigerian flag and hoisted that of Yoruba Nation agitation on the building housing the State House of Assembly. Consequently, no fewer than 20 suspects were arrested there for engaging in the botched suicide mission. There is no doubt that this action by those “disgruntled elements”, which gives an impression of insanity on their part, will be treated (among other accusations) as a treasonable felony in the law court. They will surely be prosecuted. Afterwards, 29 suspects had been arraigned before a Chief Magistrate Court in Ibadan on the 17th April, 2024.
Irrespective of what appears as lunacy, as displayed through the mentioned agitators’ bravado, it is imperative that sanity is extracted from what is seen as complete insanity before vital information is lost in a crowd controlled by wild emotions and sentiments. Respected opinions have condemned this action by the above-mentioned suspects. We, also, align with those condemning criminalities. Who will not, except criminals? Well now, without justifying this failed “coup d’état”, it is clear that there are people that are unhappy with the way the “business” called Nigeria is currently being run. The reason(s) for the discontent may be altruistic or criminally self-centred; whichever or whatever it is, necessary questions must be asked and collective answers found. Nigeria should stop sweeping dirt under the carpet as there is so much of it already gathered there breeding more negativities. This is what is continuously being done in this country. It is often said that same actions/interventions are not likely to produce different effect(s) and/or outcome(s).  During the ensuing chaos after the first military coup d’état of 15th January, 1966, Johnson Thomas Umunnakwe Aguiyi-Ironsi (1924–1966), a Nigerian Major-General, seized power and later promulgated the Unification Decree No. 34, which came into force on 24th May, 1966, leading to the abolition of regional system of government in the country.
This decree, and other steps, led to the unitary government introduced by Aguiyi-Ironsi, the main reason –according to Godwin Alabi-Isama – for which he was killed (on 29th July, 1966, in Ibadan). Thenceforth, all the governments that were formed (including the one by those who killed Aguiyi-Ironsi) fell in love with his unitary system that is still masquerading as “federal government” today. Ironically, “civilian” administrations, particularly since 1999, are still holding on to a “patch-patch” version of this system of government. A painful aspect is that when most Nigerian politicians are seeking for office, they speak vigorously about this lopsidedness; they criticise it, keying into the several calls for “restructuring”. However, once they get into office – like their predecessors – they “blend” with the hitherto well-criticised “patch-patch” system and start asking the people for the meaning and constituents of “restructuring”. How can one be more ingenious in Nigerian politics? What are we getting at here? It is that the Nigerian political elite have been doing the same thing, playing the same politics over the years, pretending to be expecting different results. This may be part of what is causing frustration for those claiming to be the mouthpiece for the different ethnic nationalities; some might have been going about their agitations peacefully, nonetheless, for explainable and unexplainable reasons some do go overboard.
Again, this piece is not – in any way – meant to endorse any criminality which definitely includes treason but to call attention to the fact that there is a critical need for sustainable truthful accommodating platforms to be enabled, allowing various (ethnic) nationalities to discuss how they wish to live together! Also, the Nigerian state should find ways to engage in constructive discussions with the people. These are suggestions those benefiting from the current chaos do not want to hear! We recognise how politically “incorrect” these suggestions can be in the circles of hero worshippers. We may not be able to say, for certain, who can be called a “Nigerian” but we believe that many of those being referred to as such do not really want the country to split; may be the country has gone far for its dissolution to be unneeded. Nevertheless, not listening to peoples’ grouses, invoking the cliché “Nigeria’s unity is non-negotiable” that sounds much like imposition, is self-deluding now and needlessly risky. Nigeria’s amalgamation of 1914 is more than a century old without the country achieving nationhood, yet. There is/are reason(s) for this challenge that should be found and sincerely worked on, together, as a team instead of this master-servant relationship that has always led to crises in the world. It must be ensured that there is no repeat of the costly, fierce and bloody 30months “One-Nigeria” struggle for which well over 2million humans perished! Surely, with a sincerity of purpose, differences can be peacefully resolved amongst “Nigerians”.

Andrew A Erakhrumen
Erakhrumen teaches at the Department of Forest Resources and Wildlife Management, University of Benin.

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Opinion

The Rantings  Of Rivers ALGON

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For the first time in the last eight years , one can observe a moribund  and toothless,  Association  of Local  Government of Nigeria, Rivers State Chapter trying to lull the people of Rivers State in believing that  it exists, that it is versed and abreast with the provisions  of the 1999 Constitution  of the Federal  Republic of Nigeria (as amended), knowledgeable  about subsisting  judicial  pronouncements on  the Local government administration  matters by courts of competent jurisdiction,  and it has workers  and. the people’s  welfare at heart.
These wrong impressions  can be deduced from the text of the Press Conference  delivered by the Association  last week.
Despite the window dressing  and cosmetic posture   that the Association  of Local Government of Nigeria, Rivers Sttate chapter wants to impress on the people and residents of Rivers State,  it is crystal clear that workers at the Third Tier of  Government  have not fared well in the last eight years of the repressive  and workers unfriendly  immediate past administration  in the State.
While workers at the State were fortunate to have a controversial minimum  wage paid to them, local Government  workers did not benefit from the N30,000 Minimum  Wage which became a legal instrument  about six years until March 2024, following  a directive by the Executive  Governor,  Sir Siminalayi  Fubara,  to Local Government chairmen in the State to immediately  implement the minimum wage,  wage award and  promote workers.
Where was.the Legal Adviser  of the Association of Local Government of Nigeria, whose statutory  responsibility it  was to advise the former  Rivers State. Governor  that it is  an affront on the sensibilities of  workers and fragrant.breach of extant law  to not pay minimum  wage to workers at.the 23 Local Government councils.
Civil servants at the State and Local Government  councils were not promoted and did not benefit from the annual incremental credit for about ten years. The incremental credit is a paltry and very insignificant  amount compared to the inputs of workers to drive implementation of government  policies and programmes and what elective office holders take home within the comparable period.
I had expected a “concerned  and workers-friendly ‘ Association  of Local Government in the State to midwife the promotion of workers, implementation  of Minimum wage  and fulfill their statutory  obligations to the workers and the people at the local government  areas whose resources they hold in trust and on whose behest they are in power.
It therefore  beats my imagination that    Local  Government  Chairmen  of ALGON,  who are products of  the ballot and not  appointees of the former governor lost their “Executive” status and played the second  fiddle role. Even when there was unconfirmed tampering  of local government funds, they could not  protest or raise an eye brow.
How the people who were cowardly and timid before the former  administration  in the State  suddenly  cultivated and imbibed the effrontry  and temerity to hold a Press Conference attempting to disparage the performing  and conscientious  Sir Siminalayi Fubara-led administration  leaves much to be desired  and a bad taste in the mouth of all patriotic  and truthful  Rivers people.
I expected the self serving chairmen  under the aegis of the Association  of Local Government  of Nigeria to brace up to the challenges of seeming derecognition and denial of their right of expression as elected chairmen by the former administration  in the State.
While the ALGON has the legitimacy  to contest violation  of,  or infringement on their interests, such protest should not be seen as selective. Between  1999 and 2003,  the Association  of Local Government  of.Nigeria in Rivers State was vociferous  and so  alive to its onus that they rejected allocations  that did not reflect the true figures of what the local government councils deserved from the Joint Account Allocation  Committee  (JAAC). That was when ALGON was keen and committed  to the essence  of its formation. That was a real workers-friendly ALGON.
However, with the advent of crude and uncivilised godfatherism that circumvented real democratic processes for manipulative and coercive selection that ultimately  produced  unpopular candidates of the godfather,  chairmen were reduced to puppets, playing  subservient  roles for their benefactors instead of protecting  the interest and welfare of workers and the people of their local government areas, who they ought to represent.
Having therefore failed to speak up for workers and defend the welfare of the people of their local government areas, at a time they were oppressed,  the association  in my candid opinion  does not have the  moral justification to  cry fowl against the present  administration  in  Rivers State whose policies and programmes so far, reveal that the governor  understands  that  the legitimacy  of his administration  is  derived from the people, so he is accountable to  them by putting in place infrastructure that will give fresh breath to a people who are recuperating from  the suffocation  of repressive  and coercive  governance.
Sir Siminalayi Fubara  is today a messiah to workers in Rivers State. Local government. workers are .being paid minimum wage, promoted and duly placed at their appropriate levels after 10 years of no promotion.
Civil servants  in the State are sure of receiving  their pensions immediately  after retirement  from service  which was a marked. departure from previous  administration.
Rather than vilifying or  demonising the present  administration  in the State, the Association  of  Local Government of.Nigeria, Rivers State should thank the  Governor, Sir Siminalayi Fubara,  for doing in less than one year what their grand master could not  do for them and workers in eight  years.
Remember, everyone will stand in the court of history  and posterity  to account for their  actions and inactions  in office.

Igbiki Benibo

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