Author: The Nation

• By Ademola Adebisi

Few days ago, the curtain was drawn on the life span of the 9th National Assembly. During the epochal events that attended the formal closure of the assembly, in both chambers of the assembly-the Senate and House of representatives, the lawmakers collectively and individually gave themselves a pat on the back and also graciously accepted its tag by critics as a rubber stamp to the out gone executive branch of government. In his valedictory speech, the former Senate president, Ahmed Lawan reeled out the achievements of the Senate. Speaking in the same way the immediate past House of Representatives speaker, Femi Gbajabiamila also submitted that he and his colleagues had done well. Whatever the case, what many Nigerians seem to have generally agreed and under which they have been labouring and remained helpless, is the truth that, the  assembly in a tripartite division of governmental powers and functions, has remained a burdensome organ of government, an albatross to good governance and a parasitic institution draining Nigeria ‘s life line.

But against the background of this negative perception of the National Assembly came the hope raised by the newly elected speaker of the House of Representatives, Hon. Tajudeen Abass, when in his acceptance speech, hinted that, they would embark on reforms in the house. He said perhaps in sync with the Senate: “We shall introduce reforms and innovations for the benefit of Nigerians”. That he hinted this suggests that, having been in the house for years and perhaps having been following the fierce criticism of the National Assembly by the Nigerian public over the years for its excesses and failures, he has realized the need for the assembly to cleanse itself.

But the question is : can the house and in fact the entire National Assembly, genuinely self-cleanse? The world over, bureaucracy and other state institutions can hardly fundamentally or radically reform themselves. Rather, exogenous forces have always ignited institutional reforms. In any event, the publicly avowed mantra of this administration is hope renewed. Dovetailed into Mr. Speaker’s promise of sending the house into purgatory, one can possibly expect a more progressive National Assembly.

If this is to happen, what issues should be in the front burner of the self-imposed reforms and innovations?

In the sphere of legislation which is the primary function of the assembly, it has been observed that a good number of bills were passed into laws without rigorous interrogation, adequate data backing and the infusion of the inputs of the wide spectrum of critical stakeholders by the past assemblies. Many public hearings were elite-driven or exclusive. The resultant effect has been passage of laws which have left much to be desired. I cite a few here. For instance, what amount of rigorous data analysis went into the jerking up of the retirement age of teachers and non-academic staff of tertiary educational institutions from 60 to 65? What did doing so indicate to the lawmakers on youth unemployment and redundancy before the bill was passed into law? Why not 62 or 63 or even less than 60 for objective reasons? France has moved inchmeal from 60 to 62 and now 64 with reasons. What data informed the reversion of some public servants from contributory pension scheme to the defunct defined benefit under which pensioners were agonizing? Will such law be in the best interest of the beneficiaries in the long run again? Are there no better options to this exclusion having suffered harshly under what is being reverted to? What of the tax laws that have been clumsy and burdensome? The existence of these kinds of half-baked and parochial legislations requires that the 10th assembly be scientific and patriotic in its legislative duty and also embark on review.

Read Also: Let’s work for our people, Tinubu urges National Assembly leaders

Aside, much also has to be done by this assembly to the attitude of the lawmakers in the performance of their oversight function. In the previous assemblies, it was evident that, this important legislative duty was seemingly carried out with low sense of accountability and transparency. Indeed, it was allegedly turned into a tool for exploiting the public institutions the legislators were supposed to watch over and bring to book if found guilty of any financial infractions. This again has eroded the trust and confidence of the citizenry in the ability of the assembly to guarantee good governance.

 In this assembly also, the matter of the huge monthly take home salaries and allowances of the lawmakers should be at the heart of the reform. It has been alleged that the Nigerian legislators are the highest paid in the world. In fact, a long standing member of the assembly is likely to be richer than any local government in Nigeria it is alleged!  Though past assemblies had denied this, yet, every member that had passed through the assembly had remained opaque about their pay. As part of the reforms, Nigerians need to know what exactly the pay of their legislators is and if truly huge and outrageous, it must be trimmed. Let not the excuse continue to be that, it is because we spend much on the members of our constituents. This assembly must be innovative (the speaker has publicly said) enough to birth empowerment schemes that will be state run and cease to turn every legislator into a mini-government and cow milk.

Furthermore, it is an open secret that budget padding has not stopped. Its twin brother, constituency project, has also remained a menace in the eyes of Nigerians. Those who were old enough have been saying that, budget padding and in particular constituency projects as being presently executed, were not known to the legislative process during the first and second republics. Today, due to these legislative pathologies, most legislators are now contractors. Worse still, in the past, many of the projects were abandoned and over looked when performing over sight function by legislators. Some have even been declared as ghost projects. According to the EFCC, contracts worth about N819 billion in the 2022 supplementary budget wer ghost projects. It revealed further that it was the principal officers of the 9th assembly that were behind those fake projects. This perhaps explains why the legislators unprecedentedly campaigned to lead the either chamber of the assembly. It is indeed imperative that this 10th assembly must take Nigeria through a turning point on this.

Furthermore, in the context of the reforms, this assembly must do more in advocacy through motions and resolutions, for social justice, equity and fairness for Nigerians. For instance, today in Nigeria, hardly can our youth who have no connection get jobs in the public service. Advertisement for public service jobs in the dailies as required by law is the exception rather than the rule. Even where advertisement is placed and interview conducted, the jobs still go to already predetermined candidates. In fact today, jobs in the CBN, Customs, NNPC, and the Nigeria Ports Authority among others, are largely the exclusive preserve of the children, relations and cronies of mostly the political elite. Unfortunately, this culture of arbitrariness, cronyism, injustice, inequity and unfairness has permeated almost all our public institutions and we all take pride in it. Hook-up rather than brain largely rules our recruitment process. Indeed today, it is much easier for Nigerian immigrants in Britain to get jobs in the British civil service or public service than in the Nigerian public service were they to stay in Nigeria. This of course, was not the hope and the promise our founding fathers assured us at independence in 1960.

In healing all the above and other social ills, this assembly must prove to be different. In choosing the principal officers of the assembly, we have seen the lawmakers from different political parties demonstrating very uncommon unanimity. This is being construed (or misconstrued) by some Nigerians as an early sign of business as usual in the assembly. But in the spirit of the assembly reform agenda, the legislators should say to themselves: enough is enough.

•Dr. Adebisi teaches Politics and International Relations at Elizade University, Ilara-Mokin Ondo State.

• By Elvis Eromosele

Nigeria, one of Africa’s largest economies, has a long-standing history of grappling with currency stability and foreign exchange challenges. Over the years, the government has employed various measures to manage its currency, the naira, including pegging it to a specific exchange rate. This naturally created two exchange rates, the official and the black market. The disparity between the two provided an avenue for people with access to dollars to buy at the official rate and resell at the black market. Many millionaires and a few billionaires were created through this distorted system.

 Floating the exchange rate is meant to solve this problem. The idea of floating the naira has however remained a subject of debate. Experts concede that it holds both potential advantages and risks.

 What does it mean to float a country’s exchange rate? Floating a country’s currency, also known as a floating exchange rate, refers to a monetary system where the value of a nation’s currency is determined by market forces such as supply and demand. In this system, the currency’s exchange rate fluctuates freely in response to various economic factors, including inflation, interest rates, trade balances, and capital flows.

 Under a floating exchange rate regime, the government or central bank does not fix or peg the currency to a specific value against another currency or a basket of currencies. Instead, the exchange rate is determined by the interaction of buyers and sellers in the foreign exchange market. Supply and demand dynamics influence the currency’s value, and its exchange rate can appreciate or depreciate relative to other currencies.

Currently, the Central Bank of Nigeria (CBN), has directed Deposit Money Banks (DMBs) to eliminate the rate cap on the naira at the Investors’ and Exporters’ (I&E) window of the foreign exchange market. This move aims to facilitate a free-floating system for the national currency, enabling it to fluctuate freely against the United States dollar and other major global currencies. Analysts claim that it follows closely on the heels of President Bola Tinubu’s commitment to unify Nigeria’s various exchange rates.

Experts have quickly lined up on opposite sides of the aisle. Some argue that it would allow the currency to adjust to changing economic conditions, which can help promote competitiveness, adjust trade imbalances, attract foreign investment, and respond to shifts in global markets. Others swear that the exchange rate will become more volatile and subject to fluctuations, which can have both positive and negative implications for the economy.

 Already, the banks were offering Naira at N755 to the dollar while in the streets it hovered between N750 and N754.

 Let’s consider the implications of Nigeria floating its currency and the potential consequences for the economy.

Firstly, experts agree that floating the naira would likely lead to increased exchange rate volatility. In a floating exchange rate system, the value of the currency is determined by market forces such as supply and demand. This means that the naira’s value would fluctuate in response to economic factors, including inflation, interest rates, and foreign investment. While this volatility can be unsettling in the short term, it can also help promote economic adjustments and improve competitiveness in the long run.

Floating the naira can also boost export competitiveness. When the naira is allowed to float freely, its value may depreciate, making Nigerian goods and services relatively cheaper for international buyers. This can stimulate export-oriented industries, increase foreign exchange earnings, and potentially reduce the country’s reliance on oil exports. It would encourage diversification of the economy and help build a more sustainable and resilient economic structure.

Read Also: CBN abolishes multiple naira/dollar exchange rates

 In addition, floating the naira carries the risk of inflationary pressures. If the value of the naira depreciates significantly, it can lead to higher prices for imported goods and raw materials, which could translate into increased costs for businesses and consumers. The CBN would need to implement effective monetary policies, such as interest rate adjustments and tight fiscal measures, to manage inflation and maintain price stability. So, all eyes are naturally on the acting CBN governor to get a sense of his leanings.

Moreover, floating the currency could impact Nigeria’s external debt and financial stability. If the naira depreciates, the country’s foreign debt obligations in other currencies, such as the US dollar, would increase when converted to naira. This can potentially strain the government’s ability to service its debt. Nigeria’s total public debt stock as of March was N46.25 trillion, excluding the estimated N27. 55 trillion ‘Ways and Means’ loans from the apex bank.

Besides, increased exchange rate volatility may lead to capital flight and reduced investor confidence, which could pose risks to financial stability.

Furthermore, floating the naira can be seen as a sign of economic reforms and attract foreign investment. A flexible exchange rate system signals a willingness to embrace market-driven policies, which can instil confidence in international investors. By allowing the naira to find its value, the Nigerian government may create an environment conducive to foreign direct investment (FDI), which can spur economic growth, technological advancements, and job creation.

 One thing is clear: floating the currency would have socio-economic implications for Nigerians. While it can enhance export competitiveness and potentially attract investment, it may also lead to short-term economic disruptions. It would impact the purchasing power of citizens, affecting their ability to afford essential goods and services. Mitigating these effects would require robust social safety nets, targeted interventions, and policies to protect vulnerable populations during the transition.

Yes, the government must urgently instigate steps to cushion the impact of currency floating on every Nigerian. Government can implement various measures and policies. These may include, strengthening the existing social safety net programmes or introduction of new ones to support vulnerable populations, ensuring their basic needs are met during economic transitions; price regulation on essential goods and services to prevent excessive price hikes resulting from exchange rate fluctuations; improvement in infrastructure to stimulate economic activity, create jobs, and improve living conditions; prioritising skill development, vocational training, and entrepreneurship support, and creating an enabling environment for small and medium-sized enterprises (SMEs).

Others are provision of targeted support to the agricultural sector to enhance productivity, reduce reliance on imports, and stabilize food prices; implementing structural reforms that enhance transparency, reduce bureaucracy, and improve the ease of doing business to attract domestic and foreign investment; facilitating access to financial services and credit, promoting financial inclusion and empowering individuals and businesses to navigate economic uncertainties; allocation of resources to improve the quality and accessibility of education and healthcare services; and finally, effectively communicating the policies, strategies, and the reasons behind floating the currency, engaging with the public, providing information, and encouraging dialogue to help manage expectations, address concerns, and build trust among citizens.

 Evidently, cushioning the impact of currency floating on every Nigerian requires a comprehensive approach. By implementing these measures, the government can mitigate the adverse effects and create an environment of stability and resilience for its citizens.

 Floating the naira presents a complex decision for the Nigerian government. While it holds the potential to enhance export competitiveness, attract investment, and signal economic reforms, it also carries risks such as increased exchange rate volatility and potential inflationary pressures.

Implementing a flexible exchange rate system would necessitate careful policy coordination, effective monetary management, and structural reforms to ensure long-term stability and positive socio-economic outcomes.

•Eromosele, a corporate communication professional and public affairs analyst lives in Lagos.

• By Udeme Akpan 

Nigerians love football. And that is undoubtedly evident in the torrents of emotions and sentiments the beautiful game elicits in the people. Apart from the thrills, frills, palpable tension and pure bliss associated with competitive football games, whether by national teams (foreign or local), or those by European elite league clubs, Nigerians have always shown fanatical interest, going by the hilarious banters and exhilarating analyses that make football to appear to be more than a game but an enthralling love affair to Nigerians.

That’s why many have opined that the fascinating game of football is a seeming unifying factor in Nigeria that breaks every existing barrier of social, ethnic, religious and political dichotomies in the nation.

Apart from football, some recent developments in the nation have also apparently thrown up other factors and sentiments that are increasingly bringing Nigerians a unifying voice: First is the growing awareness and expectations in a democracy that questions the quality of governance and also for demand for democratic accountability.

Second is the palpable anger, frustration and disillusionment in the land, as a result of obvious distrust of government that hinges on dissatisfaction with the integrity and commitment of successive governments’ service delivery, which have continued to bruise the sensibility of the people. This could significantly be referenced by the #EndSARS crisis that engulfed the nation with multi-dimensional expressions across the Nigeria in 2020.

Such unifying sentiments, understandably, is what is  playing out with the controversy surrounding the recent unveiling of the national carrier, Nigeria Air, in May as part of the last official activities of former aviation minister, Hadi Sirika. 

The controversy ignited a national outrage, justifiably because of the conflicting and sometimes, sensational information and opinions expressed from within and outside the aviation industry.

For instance, many people have questioned the integrity of the process leading to the setting up of the airline and expressed concerns over whether Nigeria would get commensurate value in the investment in terms of desired improvement of service delivery to the people as against the current less-than-satisfactory services by existing airlines; and also in terms of favourable return on investment, given the huge resources being channelled to the enterprise by the core investors. Senator Sirika had said that the federal government will only retain 5% shares in Nigeria Air. 

While some interests, such as the former House of Reps committee chairman on Aviation, Hon. Nnolim Nnaji have dismissed the whole arrangement as fraud, others such as the Airline Operators of Nigeria (AON), claimed that Nigeria Air, because of its arrangements with the preferred technical partner, Ethiopian Airlines, would stifle the existing local airlines. 1

Even the chairman of Air Peace, a prominent member of the AON, Allen Onyema, had also queried the transparency of the shareholding and had gone further to call on President Bola Tinubu to disband Nigeria Air calling it a charade. 

But former aviation minister, Sirika had argued that the setting up of Nigeria Air was to improve aviation services in Nigeria, by offering premium service delivery that would engender healthy competition in the interest of aviation customers in Nigeria, riding on the tested and trusted capacity and capabilities associated with the technical partners, Ethiopian Airlines.  He had also in an interview on Arise TV, alleged that the former chairman of the House Committee on Aviation, Nnolim Nnaji, may have taken that route of calling Nigeria Air a fraud, because he was denied 5% equity of the airline, which he, allegedly requested through the back door.

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Sirika had also revealed that despite the various huge amounts of money being bandied about as money spent on Nigeria Air, only the sum of N3billion was released to the ministry and that at the time he left office last month, the money had not been totally expended.

One fact that runs in all the diverse perspectives on this Nigeria Air situation is that, Nigerians, irrespective of their current divided perceptions, are united in the opinion that the nation needs a reliable national carrier that would bring succour to air travellers.

The question then is, are there information gaps that gave room to the current negative sentiments against Nigeria Air? Yes, in my opinion. Are there some grey areas in the process or execution of the agenda that could benefit from improved corporate governance and purposeful rejigging? Absolutely possible, I must say. And that improvement with a few corrections, here and there, ought to be the objective of every well-meaning Nigerian and not the self-serving demand to disband the airline, by a few people with vested interest. 

We mustn’t and shouldn’t throw away the proverbial baby with the dirty bath water because of the interest of a few, which a development civil society group the Generation Next Collective (GNC), in their recent statement had said was only motivated by “profiteering tendencies and dark conspiracies that do not put to account, the interest of the people or the collective prosperity of the nation.”

The GNC had added that other operators shouldn’t fret about competition with Nigeria Air, adding that “Nigeria Air should be given the chance to either prove us wrong or right, rather than the inexplicable attempt to kill it with misleading narratives. Competition is the tonic for good service delivery. And we should encourage that for the good of the people.”

It is therefore imperative that Nigeria Air be protected and strengthened to meet the core objective of setting it up as referenced earlier, to serve the interest of Nigerians and other passengers alike. It will also be a source of pride to all Nigerians as the national carriers as it is applicable to other great nations all over the world, to their respective citizens. 

With the proven capacity of its technical partners, Ethiopian Airlines, Nigeria Air would most likely offer Nigerians and other passengers a cheaper and more reliable flight alternative.

Beyond that, with the setting up of Nigeria Air, Nigeria will also be able to fully utilize the Bilateral Air Service Agreements (BASA) it signed with other countries. And it is important that those calling for the disbandment of the airline on account of its business relationship with the Ethiopian Airlines and other sentiments, should also be reminded of the implications of such, given the  African Continental Free Trade Agreement (ACFCTA), which Nigeria is signatory to. 

It is my view that at the end of the day Nigeria Air will be a win-win situation for all.

•Akpan, a public servant, wrote from Uyo.