The Nation Newspaper

Category: Letters

  • Nigeria, avoid a needless war!

    Nigeria, avoid a needless war!

    By Prof. Tunji Oyelade

    SIR: The rumours of war are flying around. Yes, that is how it starts. Little flames become huge inferno, if not tamed early enough. That is my cry for my beloved country. It is no news that ECOWAS intends to dislodge the military junta in Niger by means of armed attack as a first resort. This style is clearly against the position in international law, which encourages diplomacy; dialogue; peace-keeping and mediation as its foremost weapons of interaction between nations.

    It is a trite principle of international law that no country should carry out a war of aggression on another country for no just cause. The country that is attacked has a right to repel such attacks by way of self-defence. The United Nations may however, declare armed interference on a recalcitrant country if her actions will threaten international peace and security and affect humanity adversely. It is the Security Council that can declare it, after a resolution has been passed and all members have concurred.  We know that to reach that decision is very complex and the procedure, cumbersome coupled with the rights of veto by the superpowers.

    Similarly, a supra-national organisation cannot encourage its members to carry out force or aggression against another nation. Such an action would be against international law principle of sovereignty of nations to deal with their own internal affairs. A supranational organisation should foster trade; resolve conflict amicably amongst its members; foster peace and cooperation, not encouraging war.  I do not see how the coup plotters have threatened to jeopardise international peace and security to warrant such an action by ECOWAS as the first resort.

    ECOWAS, to my mind, is derailing from its traditional role of fostering cooperation rather than division, by thinking it could mobilise military actions against the coup plotters in Niger. Nigeria, as the present head of ECOWAS, should be more circumspect by allowing good reason to prevail by not listening to the counsel of the western world, meant only to fan their selfish embers. Now, different international interests are queuing up and at the end of the day, they’ll allow the battle to go on ad infinitum without lifting a finger.

    Read Also: Maryam Shetty breaks silence after withdrawal of ministerial nomination

    At the end of the day, if a war breaks out, because of an internal affairs of Niger, which could be solved otherwise, it may cause in fighting and division even amongst us; it would deepen religious and ethnic war internally; breed mistrust generally, while Niger and all the Zagreb and allies of Niger pummel us from without. These will be too much for Nigeria to handle, amidst poverty and dwindling patriotism. This, certainly, is not what Nigerians want at this time. It will be very unpopular.

    Reality again is that, this impending war would no longer be ECOWAS’; it will be solely Nigerian war as all small members would rescind.

    Besides, Nigeriens seem obviously happy that the coup took place, probably because the democratic government was not performing to expectation and they needed such military intervention to take them back to the drawing board. I saw in clips huge mobilisation against Nigeria, not even ECOWAS.

    Nigeria should avoid this internecine war and change to mediatory or conciliatory tactics that could talk the junta to guide the country back to electoral and democratic processes.

    Let us remember that we have a number of countries pushed or lured to war, whose lives have never remained the same.

    A word is enough for the wise!

    • Professor Tunji Oyelade, Obafemi Awolowo University, Ile-Ife.

  • Let local governments breathe

    Let local governments breathe

    By Chiechefulam Ikebuiro

    SIR: There is no disputing the fact that the local government plays a crucial role in ensuring sustainable development at the grassroots level. Its significance lies in its proximity to the people, allowing it to better understand and address their needs.

    Local governments are established as political and administrative organs responsible for delivering essential services to the people. Section 7 of the 1999 Constitution clearly spells out the functions of the local government which include the provision and maintenance of primary, adult and vocational education, the development of agricultural and natural resources, responsibility of the assessment and collection of tenement rates, control and regulation of Out-of-home (OOH) advertising licensing et al.

    However, despite its potential, the local government’s performance in promoting grassroots development has been disappointing. In fact, state governments view the local councils as mere appendages. They have continued to encroach upon what would have been the exclusive preserve of local governments, leaving them ill-equipped to undertake significant infrastructure projects. As a result, basic amenities like roads suffer, impacting the lives of millions of Nigerians. What they don’t know, and proponents of decentralization will agree, is that the more governmental authority and powers are devolved to local bodies, the better-informed, the government will be about the needs of the people.

    In 2020, former President Buhari signed an executive order to grant autonomy to the local government councils as the third tier of government. What has happened to that order? I am not sure that there has been any sort of implementation. Matter of fact we have had a series of reforms from 1976 to 1979 to 1984, 1988 to 2003; the question now becomes why have successive reforms of the Nigerian local government system not yielded any significant improvement on grassroots governance? The answer is poor implementation of all recommendations as we are wont in this clime.

    Read Also; Chicago Court dismisses Atiku’s suit on Tinubu’s records

    It is time for broader reforms that will go hand in hand with efforts to address and sanitize local government administration. These broader reforms should include constitutional changes and policy adjustments that strengthen the autonomy and capacity of local governments.

    Local government autonomy question is a critical concern that requires urgent attention. When local governments are granted autonomy, they gain the freedom to initiate development projects and design effective implementation strategies. They are able to identify and prioritize the specific needs of their communities and design tailored solutions. As a result, communities can witness more tangible and sustainable improvements in their standard of living and overall well-being. Autonomy also enhances their capacity to mobilize and manage local resources efficiently.

    Local government autonomy is a key factor in institutionalizing good governance, which, in turn, fosters sustainable development. When local governments have the power to govern independently, they can be held accountable for their actions and decisions. This accountability, combined with responsible governance practices, ensures that development efforts are transparent, efficient, and aligned with the needs of the community.

    There is an urgent need for the Bola Tinubu-led federal government to genuinely superintend the repositioning of the local government system in Nigeria. Efforts should be made to reduce the long-standing concern of condescending control of local governments by the state governments.

    It’s also time local governments started to receive their monthly statutory allocation directly from the Federation Account.

    Similarly, the state and local government’s Joint Account management that has been a problem since its advent in the 1976 local government reforms should be abolished! This will enhance the financial autonomy of local governments and reduce state government interference.

    Plus, what’s the need for the Ministry of Local Government and Chieftaincy Affairs charged with the task of supervising local governments? That’s a choke hold! Out the door, please!

    The practice of refusing to conduct local government elections or Governors ultimately determining 100% who becomes what at the local government level must stop.

    A more prosperous and inclusive nation can be built on the foundation of strong and capable local governments. When they are well-equipped and supported, they can act as engines of development, driving progress in all areas of society.

    The time for genuine reform is now, and with the right approach, local governments can become effective catalysts for sustainable development and better living conditions for all Nigerians.

    • Chiechefulam Ikebuiro, chiechefulamikebuiro@gmail.com

  • What is Nigeria’s business with Niger?

    What is Nigeria’s business with Niger?

    By Ifeonu Okolo

    SIR: The recent letter transmitted to the National Assembly by President Bola Tinubu to intimate them of a possible military action against the military junta that ousted the government of Mohammed Bazoum of Niger Republic may be a wrong move on the part of Nigerian government and members of the Economic Community of West Africa (ECOWAS).

    President Bola Tinubu as chairman of ECOWAS should be circumspect in leading not only Nigeria, but other West African countries into a likely war that will do the sub region no good.

    The more acceptable way is for ECOWAS to foster dialogue or at best, encourage the new military leader to conduct an election within a time frame.

    He who wears the shoes knows where it pinches; no other persons other than the people of Niger should determine who governs their country. It does not lie with ECOWAS member countries to dictate to them. Or has it not been said that democracy is for the masses to decide?

    Read Also: Maryam Shetty breaks silence after withdrawal of ministerial nomination

    With the ousting of Mohammed Bazoum and the consequent show of support by Niger citizens for the military junta, the Nigeriens have spoken loud and clear that Bazoum is no longer wanted as president of their country. Any attempt to force the man back on the people would definitely spell doom for him.

    France under the watch of Bazoum has been exploiting their uranium and gold almost for free, while the masses of Niger have been languishing in penury. If the French have good intentions for Niger and other West African countries, why have they not ordered the over 1,000 soldiers they stationed in Niger to assist in the war against Boko Haram and banditry?

    The promise by France and USA to stand by Nigeria and other interested ECOWAS countries over the Niger issue is purely for their selfish interest not for the good of Nigeria as a country. ECOWAS must not allow themselves to be plunged into a needles regional conflict that could escalate beyond imagination of the purveyors.

    Nigeria is still battling with all forms of insecurity and has not defeated the monster. Therefore, it will be a wrong move on the part of the leadership of the country to contemplate leading willing ECOWAS countries into war with a close door neighbour.

    Besides, countries like Libya, Algeria, Burkina-Faso, Mali and even the Russian Wagner mercenary group have pledged to protect the Niger Republic against any invading ECOWAS countries.

    • Ifeonu Okolo, Asaba, Delta State.

  • Wanted: Renewed onslaught against drug trafficking

    Wanted: Renewed onslaught against drug trafficking

    Sir: The burden of illicit drug trafficking is becoming a public health concern in Nigeria.

    We are welcomed almost every day with a barrage of news of young Nigerians, arrested while attempting to traffic hard drugs such as cocaine and heroin, within and outside the country. 

    The United Nations Office on Drugs and Crime (UNODC) defines drug trafficking as the illicit global trade that deals with the cultivation, manufacture, distribution and sale of substances which are subject to drug prohibition laws. 

    The arrest of 31,675 drug offenders by the National Drug Law Enforcement Agency between February 2021 and June 2023 lays bare the rising menace of drug trafficking and abuse in Nigeria. 

    Muhammed Marwa, the chairman of NDLEA, who also announced the seizure of 6,252 tonnes of illicit drugs nationwide during activities marking the 2023 International Day against Drug Abuse and Illicit Drug Trafficking, re-issued the warning that Nigeria may be transiting from a minor transit point in the international drugs trade to becoming a major hub. 

    Read Also: Kebbi governor’s wife backs war against abuse, illicit drug trafficking

    This calls for much stronger efforts by the government to prevent such an occurrence that could push the country into graver insecurity and instability. In Nigeria, trafficking within and across the country’s borders is increasing, and abuse is rising even faster.

    Interdiction efforts have recently resulted in the arrest of 35 drug barons, while 5,147 offenders have been prosecuted and sentenced to various jail terms. Some of the criminals also forfeited their ill-gotten wealth to the government. 

    Both the Nigerian government and the people should fret. Rising drug abuse and trafficking are fuelling crime, terrorism, and ill health, while law enforcement is overstretched.

    The country is already experiencing unprecedented insecurity; banditry, terrorism, kidnapping, armed robbery, herdsmen ethnic violence, and cultism have laid the country low. 

    Transiting to ‘narco-state’ status could complete its lurch towards state failure. President Bola Tinubu should therefore treat this challenge as another national emergency and tackle it head-on. 

    There should be a reinvigorated national anti-drug strategy. The NDLEA should be revitalized, well-funded and its personnel motivated, trained, and retrained. Corrupt insiders in the security agencies should be identified, flushed and prosecuted.

    There should be a well-planned national programme involving all three tiers of government as well as regional, state, and local activities–all integrated and aligned with global efforts.

    Also, President Bola Tinubu should appoint a national anti-drug czar, coordinating national and state law enforcement and anti-drug units of the foreign and domestic intelligence agencies.

    Now is the time to wage a brutal onslaught against persons whose stock in trade is either abusing or trafficking hard drugs. They should not be allowed to breathe.

    • Gift Moses, Nasarawa State University, Keffi.
  • Audu Ogbe’s diatribes against the Tiv nation

    Audu Ogbe’s diatribes against the Tiv nation

    Sir: Chief Audu Ogbeh’s message to President Bola Tinubu on the issue of the Benue ministerial nomination is the height of insensitivity embroidered in ethnic bigotry. Ogbeh is the least person I expected to have led such ethnic chauvinism, especially against the Tiv people.

    Currently in Benue State, Dr. Mrs. Mary Ada Ogbe is the only permanent secretary in the federal civil service from Benue State. She is Idoma from zone C. Sunday Echono, the powerful former permanent secretary in the Federal Ministry of Education, is the current Executive Secretary of the mighty TETFUND. He is Idoma from Zone C. Maj.-Gen. JO Ochai is the 32nd Commandant of the NDA. He is Idoma from Zone C. The three career ambassadors from Benue State are all Idoma from Zone C. These are just few examples out of many.

    Can Audu Ogbeh and his co-travellers say they are not aware?

    The Idomas dominate federal institutions compared to the Tivs. No day has the Tiv who are majority ever come out to say anything. Whenever an Idoma man is given a position, the Tiv will congratulate him or her with open mind.

    Read Also: Tiv people marginalised, says new Tor Tiv

    During the reign of David Mark as Senate President, Abba Moro was the Minister of interior and the Tiv had a minister of state. No one said anything. The fact that the Tiv are always contended with what they have is not to be taken for granted.

    In 2015, the Idoma nation rejected APC but the Tiv overwhelmingly voted for Muhammadu Buhari. Because of the numbers of Tiv against Idoma, Buhari and the APC won Benue State in a landslide. When it came to appointment, Audu Ogbeh was appointed the minister from Benue State even though he could not even deliver his polling unit talk more of council ward to APC. The Tiv didn’t raise any opposing voice.

    In 2023 again, the Idoma did not vote for President Tinubu even though they are occupying prime positions. If Ogbeh is a man of little conscience, he won’t be talking of Idoma not being nominated for the ministerial position if not on the basis of mischief.

    I don’t know who can tell Ogbeh about the adage “he who comes to equity must come with clean hands”. He should have been telling President Bola Tinubu how the Idoma voted for him but in turn have not been given anything in the APC government. He would have gone with bags of evidence; giving booth by booth analysis of their electoral support to Tinubu during the election. But it can’t catch my imagination how all these sniffed out of his head and George Akume became the subject of Ogbeh’s complaints. 

    Chief Ogbeh is a leader of the Northern Elders Forum, a group that should be looking for peaceful coexistence amongst northerners. Instead of finding solutions on how to end the devastating terrorists’ attacks in the North, Ogbeh is reducing himself to an ethnic warlord fighting for a fictional equity. Is that how the name Tiv gives others sleepless nights?

    I believe Ogbeh is fully aware and enjoys the age long domination of the “effective minority” at the federal level. His recent outburst is nothing but an attempt to attract hatred from unsuspecting members of the public against the person of George Akume and render the Secretary to the Government of the Federation ineffective. It seems Ogbeh and his co-travellers are just a set of overwhelming jealous tribal bigots who are having sleepless nights on how to bring George Akume down. I hereby call on Ogbeh to stay clear from further blackmail against the Tiv nation because such will definitely meet a brick wall.

    • Martin Iorsamber, Adikpo, Benue State

  • Renewed Hope: Letting the poor breathe

    Sir: In a nation that prides itself on being the “Giant of Africa,” there exists a deep-seated disparity that continues to suffocate the most vulnerable in society – the poor. The aspirations for progress, equality, and social justice that have long eluded the marginalized sections of society are in dire need of attention and action.

    Since assuming office, President Bola Tinubu’s government has promised various economic reforms and policies to uplift the nation. However, the reality on the ground presents a stark contrast. The poor have continued to endure most of the country’s economic challenges, facing limited access to education, healthcare, and opportunities for advancement. Rising inflation rates, unemployment, and inadequate social welfare programs have further marginalized vulnerable communities, pushing them deeper into poverty.

    One of the primary challenges facing the poor is the lack of access to quality education. Without adequate educational opportunities, the cycle of poverty stays unbroken, trapping generations within the same dire circumstances. President Tinubu’s administration must prioritize education reform and commit to allocating sufficient resources to improve the educational infrastructure, ensure teacher training, and make education accessible to all, regardless of socio-economic status.

    The state of healthcare in Nigeria is another pressing issue. Basic medical services, including access to clean water, sanitation facilities, and essential medicines, remain out of reach for millions of Nigerians. The poor are particularly vulnerable to illnesses and suffer disproportionately due to inadequate healthcare facilities. It is the responsibility of President Tinubu’s government to invest in the healthcare system, strengthen public hospitals, and expand health coverage to provide relief to those struggling for survival.

    Furthermore, the rural-urban divide exacerbates the poverty crisis. Rural communities often lack basic amenities, including reliable electricity, access to credit, and job opportunities. It is essential for President Tinubu’s administration to implement policies that bridge this gap and empower rural areas by promoting agricultural development, creating rural industries, and investing in infrastructure projects that connect these communities to the larger economy.

    The issue of corruption cannot be overlooked in the fight to alleviate poverty. Rampant corruption not only drains the nation’s resources but also perpetuates income inequality. President Tinubu must lead by example and demonstrate a zero-tolerance policy towards corruption, implementing stringent measures to hold corrupt individuals accountable, regardless of their social or political standing. He should start by probing into the corrupt practices of the previous administration and where necessary restore any stolen resources.

    To truly let the poor, breathe, President Tinubu must embrace a comprehensive social safety net that protects the most vulnerable in times of economic hardships. The implementation of well-targeted social welfare programs can provide a lifeline for those in need and create a more equitable society.

    Inclusivity and representation are also crucial in driving change. President Tinubu’s government must ensure that the voices of the poor are heard in policymaking processes. Engaging with grassroots organizations, civil society, and community leaders can foster a deeper understanding of the challenges faced by the marginalized and aid in formulating effective solutions.

    The Nigerian people have shown resilience in the face of adversity, and they deserve a leader who prioritizes their welfare. President Tinubu has an opportunity to leave a legacy by championing the cause of the poor and creating a more inclusive society. Let us hope that under his leadership, the nation can take significant strides toward a more equitable and prosperous Nigeria, where every citizen can breathe freely and fulfil their potential.

    President Tinubu’s administration should prioritize job creation and entrepreneurship. Sustainable economic growth can lift people out of poverty and provide them with the means to support themselves and their families. By encouraging investment in industries, promoting small businesses, and supporting vocational training programs, the government can lay the foundation for a more prosperous future.

    The situation of the poor in Nigeria demands urgent attention and action. As President Bola Ahmed Tinubu leads the nation, he has the opportunity to enact meaningful reforms that will allow the impoverished masses to breathe freely, unburdened by the chains of poverty. It is time to prioritize the well-being of all Nigerians and build a nation where every citizen can dream and aspire to a brighter future.

    • Tosin Afeniforo, IUSS Pavia, Italy.
  • FIFA’s slap on Nigeria

    FIFA’s slap on Nigeria

    By Richard Odusanya

    SIR: Our experiences in Nigeria over the years have shown that we have a system in place that enables and encourages fraudulent activities. Successive governments at various levels have demonstrated and shown how incapable they are of good leadership and are therefore very poor at managing any business no matter how lucrative. As a nation, our mind-sets appear to have been configured towards dishonesty and prone to material benefits and selfish accomplishments. This is evidenced by the rottenness and dilapidated condition of virtually all our critical assets and infrastructures.

    Examples abound in our defunct national carrier (Nigeria Airways), National Shipping Line, Nigeria Railways, and all the steel industries, just name it – even the refineries have suffered the same fate.

    There have been reports on sales of jobs going on at federal establishments. But this would appear a tip of the iceberg compared to the fraud in the oil industry and many other unwholesome activities of many of our public office holders. The question to ask is: what role is religion playing in all of the Nigerian misadventures given the level of religiosity in social spaces?

    And now, most shamefully, the Secretary-General of the Federation Internationale de Football Association (FIFA), Ms Fatma Samoura has reportedly told Super Falcons of Nigeria that it is because of players like them that FIFA decided to pay prize money directly to players. The FIFA secretary general, who addressed the Super Falcons after their goalless draw with the Republic of Ireland in their dressing room, was quoted to have noted that they had to “face the reality of Nigeria” in coming to the decision.

    Read Also: US orders officials out of Niger

    If because of Nigeria FIFA will consider a new strategy for payment of players’ allowances, one can only imagine the level of trust deficit for Nigeria even at that global stage! 

    Today’s globalization realities are intertwined with technology. Trust is difficult in a situation where leaders loot the treasury and ignore the yearnings of the people. It is time for leaders to become accountable to the people. It is time for leaders to become good stewards of the resources of the state. People get tired and become cynical when promises made by leaders are not kept. People want to see basic amenities provided for them: security, adequate health care, good roads, potable water, and a constant supply of electricity, to mention a few.

    Clearly, the issues of paradigm shift cannot be said to be over-emphasised. It has become imperative that we change our ways before it is too late.

    We need to activate such through the platform of agencies of government like the National Orientation Agency (NOA). Self-centredness shouldn’t become our 21st-century religion.

    • Richard Odusanya, odusanyagold@gmail.com>

  • Redefining strategies for poverty alleviation

    Redefining strategies for poverty alleviation

    By Akinola Ayobami Steven

    SIR: President Bola Ahmed Tinubu‘s recent policy decisions regarding the distribution of funds for palliative measures and subsidy removal in Nigeria have ignited discussions and raised concerns among the public. While the intention to provide relief is commendable, it is crucial to critically assess the effectiveness of these policies and explore alternative approaches that can effectively lift the Nigerian population out of poverty.

    By fostering partnerships between the public and private sectors, encouraging philanthropic contributions, and implementing effective tax collection and management strategies, the government can generate additional revenue to fund social safety net programs in a more sustainable manner.

    To achieve sustainable poverty reduction, it is essential to address the underlying causes of poverty through investments in education, healthcare, job creation, and entrepreneurship.

    A sure way forward is to allocate a significant portion of the funds to initiatives that promote education and skill development that will equip individuals and communities with the necessary tools for economic empowerment.

    Investments in healthcare infrastructure support for small and medium-sized enterprises (SMEs), and the development of job creation programs will stimulate economic growth and provide sustainable income opportunities will also be a good step in the right direction.

    Read Also; Let their Lordships breathe

    To achieve effective resource allocation and poverty reduction, the following steps can be taken: (a) Conduct comprehensive assessments and surveys to identify households that are most vulnerable to poverty and the impact of subsidy removal; (b). Establish a comprehensive database of these households to ensure accurate targeting and distribution of support; (c). Collaborate with local community leaders and organizations to ensure transparency and accountability in the selection and distribution process.

    The government should strengthen tax collection and management systems to ensure efficient revenue generation, implement policies to encourage private sector investment and public-private partnerships in poverty alleviation initiatives, and establish a robust monitoring and evaluation framework to track the impact of domestic resource mobilization efforts on poverty reduction.

    Additionally, it should invest in educational infrastructure, particularly in underserved areas, to improve access to quality education, provide scholarships, grants, and financial aid programs to disadvantaged students, increasing their access to education and enhance vocational training programs to equip individuals with the necessary skills for employment and entrepreneurship.

    In the healthcare and job creation sectors, it should allocate sufficient funds to improve healthcare infrastructure and increase access to quality healthcare services, especially in rural and underserved areas, support the growth of small and medium-sized enterprises (SMEs) by providing financial assistance, access to markets, and business development training, and, develop job creation programs that focus on sectors with high potential for growth, such as agriculture, renewable energy, and technology.

    All of these would require robust monitoring and evaluation mechanisms to track the progress and impact of poverty reduction initiatives, ensure transparency in the allocation and utilization of funds by regularly publishing reports on resource allocation and project implementation while encouraging citizens’ participation and feedback through town hall meetings, public consultations, and feedback mechanisms to enhance accountability and improve the effectiveness of poverty reduction programs.

    Implementing these steps will require strong political will, effective governance, and commitment from all stakeholders. It is crucial to ensure that the recommendations are implemented inclusively and through active participation, with a focus on long-term sustainability, equitable distribution of resources, and continuous monitoring and evaluation to track progress and make necessary adjustments. By adopting a comprehensive approach and working together, Nigeria can make significant strides in reducing poverty and improving the lives of its citizens.

    • Akinola Ayobami Steven, Akinolaa61@gmail.com

  • The imperative for a functional foreign exchange market

    The imperative for a functional foreign exchange market

    Sir:  When President Bola Tinubu announced his plan to see a unified exchange rate, the whole country including the international financial community applauded this announcement. To put this into effect, on June 14, the Central Bank of Nigeria (CBN) followed up with a circular to all banks on changes to operations in the Nigerian foreign exchange (FX) market. According to the statement, the CBN will be “reintroducing the ‘Willing Buyer, Willing Seller’ model at the I&E window, where all eligible transactions can access foreign exchange at their preferred rates”.

    Since the release of this circular, the actions of the CBN have been completely at variance with the establishment of a foreign exchange market where the forces of demand and supply, and by implication, the willing buyer, willing seller model is allowed to operate. The CBN will appear to be struggling from transiting from the allocation model to a market-based model. 

     The CBN calling banks to submit bids and placing a cap on rates to bid negates the concept of market forces, as this will only result in multiple exchange rates as evidenced in the wide gap already established between the I&E market and the CBN intervention rates. 

    One is not unmindful of the challenges the apex bank is grappling with on the supply side and the settlement of committed forward sales which are still outstanding; nevertheless, this allocation approach will not help the situation, rather it will only create multiple prices in the market which is contrary to the objective of the foreign exchange rate unification. 

     The CBN circular on wholesale intervention of July 24, is the latest action of the CBN that is bound to create further distortions in the forex market. The circular which categorised banks based on shareholders for the purpose of the maximum amount the banks can bid will destroy efficiency and competition in the financial system. The six banks with shareholders’ funds of N350bn and above who can individually bid for 12% maximum will jointly control 72% of the amount offered by the CBN, not because of efficiency or any market dynamics, but by the special grace of CBN categorization. 

    What does the CBN plan to achieve with this categorisation? Is this the way to create an efficient forex market? Is this the way to achieve a unified exchange rate? Is this the way to improve the efficiency of the financial system? Certainly not, as this same model was tried in the late 1980’s and it failed woefully and had to be discarded after few weeks of operation. This failed experiment is what the CBN is recycling after over 30 years! Shouldn’t we be moving forward and embracing a market economy as stated by the president? 

     Why is the CBN not allowing customers to choose the bank they want to deal with? Why are they pushing customers to certain banks, irrespective of their efficiency, pricing, and other service and product offerings? The CBN can learn from Ghana, and Kenya, two countries having similar foreign exchange challenges. These countries still have a system where there exists single rate plus or minus a few percentage points.

    This is the time to enthrone a foreign exchange market where the interplay of market forces should dictate the exchange rate. CBN as a player in the market can influence the rate by its active participation in the buying and selling process. Any form of CBN allocations, preferential allotments, categorisation of banks, CBN determination of exchange rates by fiat should stop. The foreign exchange market should be established and allowed to operate in a transparent and efficient manner where all the players should participate on equal basis without any one or group being favoured. Unification of exchange rates using market forces is the direction to go.

    • Steve Morka, Lagos.
  • Niger coup and the ECOWAS region

    Niger coup and the ECOWAS region

    Sir: A major decision of the July 30 emergency Summit of the Economic Community of West African States (ECOWAS) is the seven-day ultimatum, which the regional leaders handed the coup makers in Niger to either release and reinstate deposed President Mohamed Bazoum or face “all necessary measures, including the use of force, to restore constitutional order.”

    The African Union has also issued a similar threat giving the coup leaders a two-week ultimatum to reverse the military takeover, which has elicited multiple interests in an unravelling geopolitical power game.

    Niger is no stranger to military putsches, having experienced about seven failed or successful ones since its independence from France. The latest coup is also the seventh in the West and Central Africa since 2020, when Col Assimi Goita led Mali young military officers to topple the government now late President Ibrahim Boubacar Keita. Goita has since assumed leadership of a foundering transition programme in Mali after masterminding a second coup in 2021.

    Army officers in Guinea Conakry and Burkina Faso have followed the Mali example by toppling elected presidents in their countries with Niger, now the fourth of the 15-nation ECOWAS member where the military have seized political power.

    It is imperative to send a very strong signal to the Niger junta that military coup is condemnable. But at the same time, Abuja must be vigilant to avoid being pressured or dragged into a proxy war. Both countries share long borders and historical ties.

    While some of the multiple sanctions announced against landlocked Niger could put pressure on the coup leaders, if effectively applied, kinetic intervention remains a high-risk option.

    The socio-economic and political environment in Niger remains grave and could get worse fuelled by insecurity and mistrust between Bazoum’s Arab tribe and other dominant non-Arab ethnic groups.

    According to the UN Human development latest report, Niger is one of the poorest nations in the World despite producing about five percent of the World’s uranium output, in addition to boasting other mineral resources such as cement, coal, gold, gypsum, limestone, salt, silver, tin and oil.

    Unfortunately, these minerals are mined by foreign companies who use their huge profits to develop their countries, while Nigeriens wallow in poverty. Host communities of the mines also endure huge burdens of radiation, with the attendant deadly health conditions from the mining activities.

    There is also widespread public disaffection with the Bazoum administration, as seen by the arson and wanton destruction of properties by protesters at his political party headquarters in Niamey a day after the latest coup.

    Bazoum is reported to have fallen out of favour with his immediate predecessor in office President Mahamadou Issoufou. Coup leader Brig.-Gen Tchiani has served as Head of the Presidential Guard under both presidents, but diplomatic sources disclosed that Bazoum had planned a major reshuffle of the Niger military hierarchy before the coup makers struck.

    Ensuring Bazoum’s safety and restoring constitutional order in Niger is a complex mission akin to extricating a charging bull from a well-stocked China shop. Any miscalculation could be costly.

    But it is doable, if all sides could demonstrate sincerity, commitment and mutual respects in negotiations with unbiased conflict management and resolution strategy, and with the interest of Niger citizens as the major priority

    The international community has no appetite for military coups, which are an aberration in the contemporary world governed by the principles of multiparty democracy.

    ECOWAS, AU, and partners, including the UN and EU must act firmly and proactively without favour or bias, against any disposition toward change of government through unconstitutional means, including change of constitutions, election rigging, corruption, suppression of opposition and violation of citizens’ human rights by individuals, organizations, or governments.

    • Paul Ejime, Lagos.