The Nation Newspaper

Category: Opinion

  • Ogun and pensioners’ welfare

    Ogun and pensioners’ welfare

    By Elijah Udofia

    SIR: Recently, it was in the news that the Ogun State Governor Prince Dapo Abiodun, released the sum of N1billion for the payment of gratuity to pensioners in the state. The state government, it was announced, has, in the last six months, released about N1.7 billion for the senior citizens.

    No doubt, the news coming from the Gateway State is a cheering one not only to the senior citizens concerned, but also to those who are interested about their welfare and wellbeing.

    A cursory look at pensioners in the country paints a gloomy picture of men and women who used their productive years to serve their country, state or organization. In saner climes, these set of senior citizens are treated with utmost respect and are well taken care of. In some of the advanced countries of the world, they are made to pay half the price of whatever product they want to buy in shops and malls. This way, they are made to enjoy the fruits of their labour while alive. But in Nigeria, the reverse is the case, as they are disregarded and often treated with disdain.

    On daily basis, we hear of pensioners dropping death on the cue while undergoing verification to get their pension. We hear of retirees who died while waiting to collect their cheques. We also hear of pensioners who are suffering from live threatening illnesses and have no money to take care of their medical needs.  The plight of the pensioners in Nigeria is so pathetic that some of them, instead of taking the desired rest after retirement, engage in menial jobs, while those who are not strong enough, take to begging to survive.

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    So many factors have contributed to the poor administration of pension in Nigeria. These include, inconsistency in policies due to delay in payment of pensions and gratuities to deserving retirees in country, lack of accountability, embezzlement of pension fund, inaccurate pensioners records and gross incompetence on the part of pension administrators.

    When pensions and gratuity are regularly paid to our senior citizens who have served this country meritoriously, it goes to show that we appreciate them for sacrificing their youthful years for nation building and at the same time an assurance to those who are serving that they will be appreciated and taken care of when they retire.

    The prompt release of fund for payment of gratuity and the consistency in the payment of monthly pensions to retired workers of Ogun State by Governor Dapo Abiodun, is an indication that he is interested in the welfare of the senior citizens. Apart from being a gesture that should be emulated by all employers of labour, it also shows that the governor is keeping to his promise to prioritize the welfare of the retired workers.

    • Elijah Udofia, Laderin, Abeokuta, Ogun State.

  • Dealing with the high cost of living

    Dealing with the high cost of living

    By Ibrahim Mustapha

    SIR: The recent protest in some parts of Niger, Kano and Osun states over the rising cost of living did not come to many Nigerians as surprise. Many saw it coming. There were disturbing signs which emerged in the last two years on the likely rise on the cost of living in the country.

    For instance, the food and Agricultural Organization (FAO) and other organizations had predicted looming hunger in the country. Despite these warnings, our policy makers failed to roll out adequate measures to address the situation. While the outbreak of Covid-19 pandemic in 2021 had disrupted the economy of many countries of the world including Nigeria, it did not teach any lesson to our leaders. The post covid-19 era witnessed corruption and the mismanagement of public funds. Many intervention programs particularly in agriculture sector geared towards food security were marred by corruption.

    Until the emergence of the Bola Tinubu administration and the suspension of the chief executive officer of Nigeria Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL), a subsidiary of Central Bank of Nigeria, little was known on how funds meant for intervention were looted. Same with the Federal Ministry of Humanitarian Affairs, Disaster Management and Social Development, whose former minister, Sadiya Umar Faruk, was alleged to have diverted funds meant for alleviating poverty in the country.

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    There are other contributory factors to the current inflation and cost of living crisis. These include the devaluation of naira, worsening insecurity in farming communities; increase in the cost of production; fuel price increase; corruption; hoarding; high taxes; high exchange rate etc. These factors have contributed greatly to the current food crises in the country.

    There is the urgent need for government to address the underlying causes of cost of living and come up with short, medium and long term plans to address it. While the release of 102,000 metric tons of assorted grains as directed by President Bola Ahmed Tinubu may provide temporary relief to many if judiciously channelled, the high rate of inflation calls for more urgent actions.

    While the rise of cost of living is a global phenomenon, the three levels of government- federal, states and local governments-need to sit up, re-stategise and roll out more intervention programs targeting the larger population. The removal of subsidy has led to increase in revenues available for distribution in the country. We see evidence of this in the high revenues being shared by FAAC monthly. It is quite unfortunate that state governors are doing little or nothing to bring succour to the suffering people in spite receiving billions of naira from the federation account. Many states governors, sadly, failed to evolve adequate measures to share the first tranche of palliative released to them by the federal government last year.

    Government at all levels should quickly come up with living wage for their workers. The current package (wage) is pitiable and hardly meets up the demand of majority workers amidst galloping inflation in the country.

    The Tinubu administration should convene an economic summit to brainstorm on how to navigate the current economic turbulence. These experts should also help us with comprehensive blueprint for growth. Time for Nigeria to embrace home-grown economic policies as the prescriptions of the Bretton Wood institutions have failed to take our economy out of the woods. The Structural Adjustment Policies (SAP) implemented by Babangida military government in the early 80’s is evidence of how our once-flourishing economy was ruined through shoddy privatization, currency devaluation and corruption. If SAP with all its beautiful sing-song in the 80’s could not take the country to nirvana, the Bretton wood policies will not change anything in our democratic setting.

    • Ibrahim Mustapha, Pambegua, Kaduna State.

  • Nigerians deserve more from governors

    Nigerians deserve more from governors

    By Niyi Akinsiju

    There has been a growing concern over the dwindling roles of state governors in the economic affairs of the country since the nation’s return to democracy in 1999. Many of them are on record to have shown limited knowledge of the concept of federalism.

    It appears that this confounding gubernatorial disposition to federalism is consequent upon an outright misunderstanding of the bolts and nuts undergirding the power relationships between the states and the federal government in a federal system or, perhaps, it may be that the state governors have, overtime, decidedly abandoned their roles as enshrined in the constitution in preference for waiting in line for federal government’s largesse.

    Consequently, rather than have scenarios of federating states that are economically self-regenerating and sustainable with implications on the standard of life of citizens living within their respective borders, the Nigerian state is saddled with a collection of dependent states whose only claim to political standing are their constitutional mentions.

    From the analyst standpoint, a large number of the states, overtime, have not had the good fortune of being entrusted to capable, resourceful, policy minded individuals that could have positively impacted the whole gamut of existence of people in the states. This would have saved the nation from the untoward whining of governors elected on the platform of the People’s Democratic Party (PDP) that recently made a spectacle of themselves in the public space.

    After a meeting in Abuja, the PDP governors addressed the media on the economic challenges confronting the nation at this time. Typically espousing an abbreviated understanding of the nuances of federalism with intent at manipulating the larger populace’s perception of the current administration of President Bola Ahmed Tinubu, the governors declared, rather, in a tongue-in -cheek manner:

    “But at the onset of this administration, we supported the removal of subsidy, we believed that there were safeguards, we believed that if we took collective decisions, we should go by it. But certainly, we have seen that it is a free fall for the naira. The cost of living is going high; we are almost on the road to Venezuela.”

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    The above extraction from the statement of PDP governors merely captures a pedestrian understanding of the place of state governors in a federal structure.

    Petroleum subsidy was a national policy not a federal government policy; that was why payments were deducted from the federation account, not the consolidated account. Federation account receives all accruals on behalf of all tiers of the federating units. It is from the federation account that Federation Account and Allocation Committee (FAAC) shares money to the three tiers of government on the basis of a legislated revenue formula; the federal government takes 52.68%, of distributable revenue while the states as a collective take 26.72% and the Local Government areas shares 20.60%. 

    The PDP governors had also gone on to describe the withdrawal of subsidy and harmonisation of the foreign exchange windows as obnoxious policies. This, in our consideration, smacks of imprudence by governors that refused to acknowledge the exponential increase in revenue they had been sharing from FAAC every month since the application of the twin policies of subsidy removal and exchange rates unification.

    To put this in perspective, the National Bureau of Statistics (NBS) reports that in 2023, state governments got the most cash in FAAC allocations in at least seven years. This was after the petrol subsidy was removed and the currency reform availed a 40 percent increase to the country’s revenue.

     According to the NBS, FAAC shared a total of N16.04 trillion to the three tiers of government in 2023, a 37.3 percent increase from N11.7 trillion in 2022. From this, the states and their Local Governments received a total FAAC allocation of N6.57 trillion, twice the N3.16 trillion they received in 2022. The NBS particularly notes that the amount shared by the federation surged in June 2023 following President Tinubu’s removal of the petrol subsidy and liberalisation of the foreign exchange market.

    However, the increased revenue shared has not reflected in the lives of Nigerians residing in the states. While we acknowledge the feverish efforts being made by the federal government to manage inflation through providing more food and enhancing supply of Dollar to the foreign exchange market, except for Lagos State and a few other states, we have not seen a replication of the federal government’s commitment to assuaging the challenged economic circumstances of citizens at the sub-national level.

    Delta State, a PDP-controlled state received the highest FAAC allocation of N214.74 billion between June and December 2023. Rivers State, another PDP-controlled state followed with N179.81 billion, Akwa Ibom State, yet another state with a PDP governor got the third highest sum of N145.57 billion, and Bayelsa, a PDP state with only eight council areas, received the fourth highest revenue allocation at N128.5 billion.

    Despite this hugely increased revenue, a PCL State Performance Index (PSPI) released by Phillip Consulting Ltd in December 2023 ascribes a poverty rate of 13.10 percent to Delta State as well as an unemployment rate of 31.10 percent and an inflation rate of 24 percent.

    According to the PSPI, Delta State faces significant challenges in the effective management of public institutions, provision of public transportation, and access to potable water.

    While poverty rate is 7.3 percent in Rivers State, its unemployment rate is stated at 41.60 percent and inflation rate at 31 percent.  These figures are way above the national average of 33 percent unemployment rate and the 28.9 percent inflation rate respectively.

    Akwa Ibom, another high earning PDP State has a poverty rate of 22.9 percent, unemployment rate of 51 percent, and inflation rate of 26 percent with Bayelsa State recording poverty rate at 24.3 percent, unemployment rate of 36.7 percent, and inflation rate of 28 percent.

    Other data have shown that most of the states in the federation are ill managed, reflective of the fact that substantial FAAC allocations received by these states have not significantly improved the condition of their residents.

    We further question the basis of the governors’ insinuation that Nigeria is treading the path to the economic situation that had become the lot of Venezuela when, indeed, the policies being deployed by the Tinubu administration are the opposite of the policy undoing of Venezuela.

    The South American country, like ours, used to binge on crude oil revenues by subsidising virtually all basic needs but when oil prices crashed, its economic vertebra couldn’t carry the burden of the weight of the populist- driven subsidies that had inflation rate skyrocketing to nearly 190 percent in December 2023.

    Rather than castigating President Tinubu, he should be commended for the courage of applying policies that will redeem the country from a possible Venezuela scenario.

    Meanwhile, all state governors need to be reminded of their roles as prescribed in various Nigerian laws. To be sure, the management and control of all land in the territory of the federation is vested in the governor of the state who is expected to hold the land in trust for the use and common benefit of the citizens. This duty is conferred on all governors by virtue of Section 1 of the Land Use Act. The clear import of this is that the federal government can only contemplate possible agricultural interventions in states only in active collaboration with the state governors who are the custodians of land. That was why we commended President Tinubu, in an earlier policy statement, for streaming the cultivation of 500,000 hectares of agriculture land in collaboration with the governors.

    We, however, wonder why the governors have not actively employed the land at their disposal for agriculture even if it is to adopt the small holder farming framework as a means of food production and employment?

    Our understanding of the Nigerian circumstances is that for the country to develop and flourish, the states and their local government council components must be transformed into economic facilitators in their respective spheres of influence. It is the aggregation of economically viable sub-nationals that determine the outlook of an economically prosperous country.

    • Chief Akinsiju is chairman, Independent Media and Policy Initiative.

  • Hope for a better tomorrow

    Hope for a better tomorrow

    By Ven. Henry Adelegan

    Text: “Rejoice in the Lord always: and again I say, Rejoice” – Philippians 4:4

    There is no time in the history of our nation that the word of Jesus Christ in John 16:2,22 is more relevant than this present time.

    A time when Nigeria is facing serious economic challenges and Jesus is assuring us that better times are coming.

    Jesus Christ said in John 16: 21-22 that: “A woman giving birth to a child has pain because her time has come; but when her baby is born she forgets the anguish because a child is born to the world.

    So with you: Now is your time of grief, but I will see you again and you will rejoice, and no one will take away your joy.” The reality is that Nigeria is a great country and shall bounce back shortly.

    Paul the Apostle, a man who had seen it all – the good, the bad and the ugly (cf Acts 16:22; 14:19; 2 Corinthians 11:22-33) in his letter to the Christians at Philippi wrote from prison what is historically known as the ‘joy letter’ and in Greek is called: ‘summa epistolae; gaudeo, gaudetee’ meaning “The sum of the letter is, I rejoice, rejoice ye” (Phil 1:7, 13, 14, 17), while he was in danger of death and without knowledge of what tomorrow would bring (Phil 1:20–23), rejoiced in his tribulation and commended the same to everyone.

    Paul’s message to the Philippians is that although there was nothing to rejoice in or about, they should turn their backs to what the world was giving, what was happening around them, their ill health, their lack, their problems, their challenges, their failures and rejoice in the Lord. Beloved, it doesn’t matter the gravity or grievousness of what is happening around you, please rejoice in the Lord because there is hope for a better tomorrow.

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    Paul’s message echoes God’s word which He sent through Habbakuk in Habakkuk 3:17-18 that “Although the fig tree shall not blossom, neither shall fruit be in the vines; the labour of the olive shall fail, and the fields shall yield no meat; the flock shall be cut off from the fold, and there shall be no herd in the stalls: Yet I will rejoice in the Lord, I will joy in the God of my salvation”.

    Why is rejoicing expedient at such a time or what should make us sing the Lord’s song in a strange land (Psalm 137:4), Habbakuk continues in verse 19 that, “The Lord God is my strength, and He will make my feet like hinds ‘feet, and He will make me to walk upon mine high places”.

    He is saying in effect that when you rejoice instead of worrying, you are setting God’s hand to action. When you take your eyes off your problem which need be said has an expiry date, and face Jesus Christ, the solution provider, He will step into action, He will give speed to your life and work, move your life forward beyond your imagination, lift you to higher places, position you where you least expect you can get to and make you an object of attention.

    In Phillipians 4:5, Paul said the reason why we need to rejoice is that “The Lord is at hand” meaning that rejoicing provokes the appearance of God and manifestation of God’s power.

    When Paul and Silas were thrown into prison for committing no crime and kept among hardened criminals, their legs were stuck between woods, they were immobile, helpless, hopeless and death was staring them in the face, Paul beckoned on Silas and said “Brother, let us rejoice in the Lord”.

    Silas must have asked him “Sir, is it possible to thank God in this circumstance?” Paul must have responded that, “Brother Silas, rejoice not in our problems, rejoice not in what you are seeing, rejoice not in our bad state, rejoice not in the plan of our captors, rejoice not in the fear of death but let us rejoice in the Lord.

    Let us rejoice because He is coming to save us. “And again I say rejoice”. When Silas joined him in thanking God, the story changed immediately.

    The Almighty God arrived in His power, the ground shook, chains were broken, doors were opened, order was brought into disorderliness, hope came for the hopeless, the hunted became the hunter and the accused became the accuser.

    As you take your eyes off your worries and go into worship this moment, casting your cares on Him and trust in Him alone (Matthew 4:6-7; Philippians 4:6-7; 1 Peter 5:6-77, He will arise for you, you shall be the next person to testify of His awesome powers and the glory of Nigeria shall be restored in the name of Jesus.

    Why should I worship God when things are not right? The answer is simple: David, a man of praise, a man who God used to do unprecedented miraculous works of killing a lion and bear with bare hands (1Samuel 17: 34-35); a man who with a stone killed the mighty Goliath that the trained armies of Israel could not withstand for 40 days (1 Samuel 17:48-50) revealed the secret of his success in Psalm 22:3.

    He said that God dwells in praise. Suffice to say that when you praise Him, you bring His power down and cause a shaking (Acts 16:25-26); when you praise Him, He would raise you from death to life (Psalms 67:5-7 cf John 11:42-43); when you praise Him, He will turn your little into overflowing and your shame into fame (John 6:11); when you praise Him, He would give you all that you need but never asked for (2 Chro. 1:6-7 cf Eph. 3:20); when you praise Him, you will provoke angelic assistance to fight your battles (2 Chronicles 20:21-23) and when you praise Him, you get instant healing  (Matthew 21:9-12; Luke 17:11-19 cf 1 Cor. 6:19).

    Beloved in Christ, as you continue with the fasting, don’t allow the devil have control of your thought, take your heart and eyes away from your predicament and worship God with all your heart, soul and mind.

    Ensure you appreciate Him for Nigeria, for the people in government, for the currency, for your church, for every member your family and your loved ones. As He lives, your life shall be laden with unprecedented testimonies (Philippians 4:6-7) in the name of Jesus Christ.

    •Prayers: Father, as we take our eyes off our problems and worship you, please honour your word and surprise us, as a family and nation, in Jesus’ name

  • Gaza Strip at my doorstep

    Gaza Strip at my doorstep

    By Olabode Lucas

    The latest conflict between the Palestinians and Israel started on October 7,  when on the morning of that day, waves of Hamas gunmen stormed across Gaza border into Israel and fired thousands of rockets. Many Israelis’ houses were attacked, and many Israelis were killed including youths having a musical festival. According to Israel prime minister, 1,200 Israelis were killed with 6,900 injured. 253 Israelis were taken as hostages and taken to Gaza by Hamas.

    Israel, who believes in ‘an eye for an eye and a tooth for a tooth’ responded swiftly with unabated fury on 0ctober 27, 2023. On this day, the well organized and ferocious Israel Defence Force (IDF) entered Gaza Strip with clear instruction from the Israeli Prime Minister Benjamin Netanyahu to wipe out Hamas from existence. Since that day, the world has witnessed the horrendous destruction going on in Gaza. Houses were razed to the ground; hospitals and other essential infrastructure were wantonly destroyed.

    For the residents Of Dejo Oyelese Street and adjoining streets at old Bodija Housing Estate in Ibadan, the trauma and pain presently going on in Gaza strip was brought to their doorstep without notice on Tuesday January 16, without any warning.

    Dejo Oyelese Street is a highbrow residential area in Bodija Housing Estate in Ibadan. Bodija Housing Estate is the first housing estate in the whole of Africa started by the government of the visionary Chief Obafemi Awolowo in the fifties. Among its residents we have former vice chancellor, renowned professors in medicine, agriculture and humanities, top class engineers, reputable business man and women and highly regarded retired civil servants. I count myself to be a resident of this highbrow serene location.

    For me, this day of infamy started like any other day. I was buoyed on that day by the fact that I would be watching good football matches at the ongoing AFCON competition on the television in the evening. I planned to end my television viewing on that day with my favourite programme ‘Hard Talk’ on BBC. True to my plan in the evening, I started to watch Tunisia versus Namibia match and mid-way to this match around 7: 30pm, and with my wife taking a phone call near me, I heard an unprecedented loud deafening bang, the type of which I have never heard in my life.

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    I first thought it was a thunder strike. The three of us in my household that night through God’s grace remained calm in the midst of the melee around us. We heard sound of broken glasses all around us. We managed to walk out of the building after the noise has subsided. It was extremely dark outside and the whole environment was enveloped in dust and smoke. However, we managed our way to the street.

    The whole of the street was filled to the brim like a football stadium. Everybody had left their buildings to take refuge on the street like me. People were milling around aimlessly on the street with many covered with blood and dust. Small children were crying about without anybody giving them any attention. One harrowing sight for me that night was that of a woman more than 80 years old walking about stark naked. She was distraught and confused and was later taken to the hospital in a very pathetic state. I saw dead bodies being evacuated from collapsed buildings. There was a lot of confusion and pandemonium. It was not possible to see the level of destruction both to human lives and properties at that night of horror. About an hour after the explosion and with many people still in state of shock, the security personnel descended on the street with full force to keep order and prevent looting by area boys who had now invaded the streets in large number.

    There were many rumours about the cause of the explosion. Some of the rumours were jejune and bizarre. The only probable cause of the explosion one could hold on to was that given by the state governor, Seyi Makinde, when he later visited the site. He said that the explosion was caused by explosives kept by an illegal miner.

    As the night progressed, the officials of the state government arrived at the scene and swung into action. The protocol officer of the governor, Otunba Gboyega Badejo announced to the people that the governor has given an order that people should go to nearby hotels where they would be accommodated free of charge and that wounded people should be taken to hospital where they would be treated free of charge. Later, the governor, Seyi Makinde and his deputy visited the scene of the explosion to assess the damage and sympathize with the people.

    At dawn, the magnitude of the devastation of Dejo Oyelese Street and adjoining streets assailed the residents with distressing poignancy. Many beautiful houses standing regally less than 24 hours earlier especially those near the epicentre collapsed like pack of cards and reduced to rubbles; cars that adorned some of these houses were mangled and piled over one another. The buildings that were still standing had their roofs and ceilings destroyed. Most houses had their doors and windows smashed and twisted beyond recognition and tossed many meters away.

    An initial rough estimate put the figure of houses affected by explosion at 95. It is no exaggeration to say that the destruction at Dejo Oyelese and the adjoining street especially at Aderinola Street is nothing short of what is happening at Gaza strip.

    The unexpected bomb blast in an otherwise peaceful suburb has really traumatised the residents of the area who are mainly retired Nigerians and who had served their country meritoriously in their youth. They are not only disillusioned but they are homeless. What happened was not caused by them as unmitigated disaster was brought to their doorsteps by unscrupulous people under the nose of our security agencies. Residents in other areas in Ibadan are now raising alarm about explosives being kept in their neighbourhoods.

    In his first reaction, Governor Makinde said the explosion was caused by explosives stored by illegal miner. The man being fingered for this deadly action is Youssouf Sawane, a Malian, who in 2022 gave an interview that he was not an illegal miner. He said that his company was registered in Nigeria with a Nigerian director. He arrogantly said in the interview that he helped in boosting the economy of Oyo State by giving employment to people of the state and that he paid taxes regularly to the federal government. Specifically on the Bodija blast, whilst sympathizing with the people, he said he had nothing to do with the blast. The latest from Oyo State government is that three people who are not named have been identified as being responsible for the “remote and immediate” cause of the explosion. The government promised to prosecute them. The people of the state and other Nigerians really want to know what really happened at Bodija.

    Immediately the blast occurred, the state government took some commendable actions and victims were asked to put down their names with details of their losses at the Bodija Housing Corporation Office. This was more than three weeks ago and up till now, nothing has come out of the exercise. The government needs to act fast. Many house owners are still in hotels with little or no action on their houses. The rain will soon commence and so the people need help urgently from the government as most of them are senior citizens who want to live their twilight years in peace and tranquillity.

    I will like to end this piece by appealing to the federal government to have a blueprint on mining in Nigeria. The situation where illegal miners are having devious hold on our God-given mineral resources is unacceptable as it is an affront on our sovereignty. The Minister of Mineral Resources, Dele Alake has his work cut out for him: He should swing into action to get rid of these vermin destroying our economy. There is also a need for constitutional change to allow the governors of states to have a say on how mineral resource in their States are exploited.

    • Professor Lucas writes from Old Bodija, Ibadan.

  • Ethical crisis in Nigeria’s banking sector

    Ethical crisis in Nigeria’s banking sector

    Nigerian Naira is on a downward spiral against the US dollar this year, spelling trouble for citizens and businesses alike. The weak naira is one of the drivers of high inflation in our import-reliant nation, hovering around 28.9%.

    Economic theory states that inflation and import have positive relationship. For example, an increase in aggregate spending exceeds the local demand that leads to the need for import to meet the local demand. As import quantity’s demanded increase, the price of imported goods and services rise, causing the inflationary pressure to the economy.

    The Central Bank of Nigeria (CBN) said Nigerians must avoid dealing with speculators in the foreign exchange (FX) market to save the naira from further decline.

    The international monetary system after World War II was dubbed the Bretton Woods system after the meeting of forty-four countries in Bretton Woods, New Hampshire, USA in 1944.  The countries agreed to keep their currencies fixed (but adjustable in exceptional situations) to the dollar, and the dollar was fixed to gold. Countries settled their international balances in dollars, and U.S. dollars were convertible to gold at a fixed exchange rate of $35 an ounce.

    On 15th August 1971, President Richard Nixon issued order for the gold window to be closed, ending dollar convertibility to gold. Foreign governments could no longer exchange their dollars for gold; in effect, the international monetary system turned into a fiat one. Fiat money is government issued currency that is not backed by a commodity such as gold. Fiat money gives central banks greater control over the economy because they can control how much money is printed.

    ‘Floating’ the dollar allowed currency values to be determined by traders in currency exchange markets. Currencies from countries with strong economies and sound monetary and fiscal policies were given more value than currencies from countries with shaky or weak economies and policies. This ‘opening’ of the system created a framework for the speculation game.

    In 1970s and ’80s, about 80% of foreign exchange transactions in Nigeria were to conduct business in the real economy. For instance, currencies change hands to import machineries, spare parts, raw materials, etc. Real transactions actually produce or trade goods and services. The remaining 20% of transactions at that period were speculative, which means that the sole purpose was an expected profit from buying and selling currencies themselves, based on their changing values. So, even in the days when the real economy was dominant, some currency speculation was going on. There had always been that little bit of frosting on the cake. Today, the real economy in foreign exchange transactions is down to 20% and 80% is now speculative. What had been the frosting has become the cake. The real economy has become just a small percentage of total financial currency activity.

    In Nigeria’s foreign exchange tapestry, it is hard to describe where exactly Bureau De Change, BDCs reside. They are not quite an official market but you need a license from the CBN to operate one. They are not the black market either as they can get their dollars legally from official sources. Depending on the mood of their regulator CBN, they are either demonized or tolerated as part of the foreign exchange architecture of the country. Persistent whispers for years have also said that most of the active BDCs licenses out there are held by CBN staff inside the bank and commercial bank directors.

    These insiders, Commercial Banks and BDCs buy foreign exchange at low official rates and sell the forex at a higher rate on the black market. The black market is equally supported through the nefarious activities of some members of the Manufacturers Association of Nigeria who buy foreign exchange at low official rates usually under the guise of importing raw materials or machinery for manufacturing and then simply selling the forex at a higher rate on the black market for a tidy profit. The diaspora remittances sold through the black market also boosts the market.

    So, the financial crisis in the country is fueled by the unethical conducts of bankers aided and abated by the manufacturers and Diasporas. If the banks and financial experts are key players in the forex racketeering, we should look elsewhere for solutions to the financial crisis paralyzing the economy.

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    Listen to the bankers and financial experts pontificate on measures to arrest inflation and Naira depreciation, and the solutions would appear seamless; just requiring the political will for implementation. Zebrudaya, the comedian would say— Far, Far, Far, Foul! Quite, they prescribe such solutions as: Monetary Policies including Interest Rate Control, Money Supply Issue; Fiscal Policies including Government Expenditures, Tax Increases, but these are far from the solutions. The one and only effective prescription is to kill the black market. The black market is driving both the supply and the rate of foreign exchange transactions in the country.

    One sure way of arresting currency depreciation is increase in forex earning, and this could be made possible through export of processed or manufactured goods. However, Nigeria Manufacturers, aside from their involvement in forex racketeering, fail to meet international best practices, as they churn out substandard goods, which are not exportable. Nonetheless, we can still earn the much needed foreign exchange through Foreign Direct Investments, FDI; if government partners with foreign investors to establish processing industries for essential raw materials in high demand at international markets. Such items as Methanol and Soda Ash are capable of earning the needed foreign exchange.

    Methanol is in high demand at international markets, as an additive to refined Premium Motor Spirit (Petrol). Furthermore, Methanol fuel is a good alternative to Petrol, better than Compressed Natural Gas, CNG which holds greater security risks, since it is a combustible, high pressure gas.  Soda Ash is another material in high demand, as additive to glass manufacturing, detergents, and rechargeable batteries. Government should persevere in its efforts to attract foreign direct investment in those essential industrial materials to facilitate the earning of necessary foreign exchange. We should also target conserving of forex through sufficient food production and this could be made possible through the commercialization and embracing of improved crop varieties churned out from Biotechnology agencies and institutions.  So, the ball is in the court of our Innovators, Scientists and Technologists; to chart the course for improved foreign exchange earnings.

  • South Africa’s double standards

    South Africa’s double standards

    By Rogier Ormeling

    With its suit at the International Court of Justice (ICJ) against Israel for allegedly violating the 1948 UN Genocide Convention through its actions in Gaza, the South African government is challenging the Western-dominated international order.

    The International Criminal Court (ICC) has long been accused by African countries of persecuting Africans in particular. And the presence of double standards in the US and Europe is indeed undeniable. Either you condemn the bombing of civilians and imminent ethnic cleansing – no matter whether in Ukraine, Syria or Gaza – or you do not.

    But does that not apply to South Africa too?

    When Sudanese dictator Omar al-Bashir came to Johannesburg in 2015 for an African Union summit, South Africa refused to arrest him and hand him over to the ICC. Despite the fact it was obliged to do so as an ICC member since the Court had indicted al-Bashir for war crimes, crimes against humanity and genocide.

    After Russia launched its full-scale invasion of Ukraine in February 2022, with the manifest genocidal intention of wiping the sovereign nation and its culture off the map, South Africa abstained from voting during UN resolutions condemning the invasion and annexations of Ukrainian territories. Despite the fact that Russia’s actions were in violation of the UN charter, including the principle of sovereignty.

    South Africa’s abstention was also despite the staggering number of Russian war crimes, including destruction of cities (urbicide) according to the Genghis Khan method, bombing of civilian targets killing thousands and displacing millions, shelling of evacuation routes, arbitrary executions (even though Russia itself does not even have the death penalty), rapes, torture, deportations, child robberies and more. Through Russia’s campaign, many Ukrainian settlements have been virtually wiped out.

    The world in focus, as seen by a Canadian leading global affairs analyst, writer and speaker, in his review of international media.

    None of these acts, along with the Russian blockade of Ukrainian ports which resulted in a global rise in food prices that took African countries to the brink of famine, changed South African voting patterns.

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    As Russian President Vladmir Putin himself stated, he seeks to restore the tsarist empire established in the 15th century through conquests and colonial subjugation of non-Russian peoples. However, at a ceremony in September 2022 to mark the “annexation” of four Ukrainian regions, Putin justified it by recalling the slave trade and colonial plunder of Africa and presenting himself as a leader of the global anti-colonial struggle against the West.

    Meanwhile, in Sudan, the Central African Republic and Mali, among others, Yevgeny Prigozhin’s Wagner group was embroiled in serious human rights violations and neocolonial exploitations that financed the imperialist Russian war machine in Ukraine.

    Yet South Africa did not even flinch from holding joint naval drills with Russia and China (the latter accused by several countries and organizations of genocide against the Uyghurs) in February 2023 – one year following the Russian invasion. The foundation of late South African archbishop and Nobel Peace Prize winner Desmond Tutu blasted these actions as “disgraceful” and “amounting to joining the war on Ukraine.”

    Has South Africa forgotten that the former Soviet Republic of Ukraine also supported the African anti-colonial struggle and even trained African National Congress (ANC) fighters?

    Olexiy Haran, professor of political science at the National University Kyiv-Mohyla Academy, recalled that African diplomats once associated Ukraine with anti-colonial and anti-apartheid resolutions. Indeed, not the USSR, but Ukraine, was a member of the UN Special Commission against Apartheid, in which Ukrainian Hennadii Udovenko served as vice chairman between 1985 and 1992.

    “We have obligations to the Genocide Convention” stated South African Justice Minister Ronald Lamola to the BBC. Does that obligation not apply with respect to Russian and Chinese practices?

    The conclusion cannot be anything other than that the indictment of Israel demonstrates that South Africa employs double standards too.

    • This article was first published in www.kyivpost.com

  • Ekiti: Time to silence the guns (1)

    Ekiti: Time to silence the guns (1)

    Thank God Ekiti school children and their teachers who were kidnapped on Monday, January 29, 2024, have now been released and reunited with their families. May the ‘Land of Honour’ never witness such a horrible experience again!

    Yours sincerely also join other well-meaning Nigerians to commiserate with those who lost loved ones to the two tragedies. May God repose the souls of the faithful departed and grant the bereaved families the courage to process their losses and the strength to face whatever lies ahead!

    Most of all, Governor Biodun Abayomi Oyebanji, aka BAO, deserves a pat on the back for taking steps that demonstrated the true essence of public service. No doubt about it, he, like any other governor in Nigeria, is under immense pressure and recent events in the country have not helped matters. But then, here’s a man who did not delegate responsibilities or send his deputy on an assessment tour of the terrible tragedies that had just rocked the state. Oyebanji did not attempt to insult God by asking Him to help put rice on fire after He had done His part of the provision. No, the governor did not resort to episodic strategies and dead laws that’d have further left the victims battered and bruised. Instead, he took charge! He led from the front!

    Oyebanji took steps that clearly showed the remarkable empathy in his public persona, which mattered to the people. He gave a comforting ‘state of the state’ broadcast, visited the affected communities and representatives of the traditional rulers to reassure them of his administration’s strong resolve to deal neatly, meticulously and decisively with the scent of frustration, confusion and a piece of complex puzzle trying to overwhelm the state. He met with Nigeria‘s military chiefs and the Inspector General of Police on the security situation in the state, and this led to a promise to assist Ekiti securitywise. The governor did even more, and the results showed!

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    Bold steps! Encouraging results! From what Nigerians have seen in the past few days, Oyebanji is a governor any state worth its purpose will want to have! But again, how did we get to this sorry pass and what next?

    The current dilemma again reminds one of a time in Nigeria’s recent history when the social media platforms were flooded with videos of young men who, in their thousands, were reportedly undergoing paramilitary training in insurgency in selected camps. Unfortunately, the principalities and powers at the time watched helplessly as some witches and wizards acted recklessly. With the Indigenous People of Biafra (IPOB) and the Eastern Security Network (ESN) as the culprits, Nigerians are now living with the consequences.

    When Gani Adams cried out that Fulani herdsmen’s invasion of the forest reserves in Yorubaland was a taboo and an embarrassment that should not be tolerated, our leaders and elders either didn’t have the nerve to speak truth to power or made political fortunes out of the bad situation. Now, the chickens have come home to roost and here we are, crying over spilled milk!

    When Sunday Adeyemo, alias Sunday Igboho, attempted to lead a response to the criminal herdsmen who had invaded Yorubaland, some Nigerians gave him a bad name. The feeling then was that Igboho was just an impenitent irritant in the hunt for undue attention. With the help of some powerful forces, the activist was thrown out of the country and was detained in a foreign land. Safe for providence, the story would have been pathetically different. Now, here we are, licking our wounds!  

    Truly, the upsurge in the killings and abductions is not new; and it’s not that the tendencies also assumed office with the Bola Tinubu-led government. However, it is no longer news that things are taking turns for the worse in Nigeria. Kidnappings for ransom are fast becoming an industry to the level of the hunter becoming the hunted. In the days of old, whenever anything was stolen, the oracle would be consulted to help catch the thieves. Now, thieves have stolen the oracle. So, who are we going to consult? Here, everything seems to be failing and falling. Abuja, Nigeria’s administrative and political capital is no longer safe while Lagos, Nigeria’s economic hub is fast becoming a dangerous terrain for commerce to thrive. Even police and military formations are no longer secure, and one begins to ask if the proverbial security dogs have not begun eating up their owners’ children.

    When former President Muhammadu Buhari came, Nigerians were deceived into believing that he’s got body language. Of course, that horrid legacy worked for some time, until Nigerians woke up from their slumber only to discover that body language as a pill has an expiry date. One major challenge with the present government is that it doesn’t even seem to have a body language; and that’s unfortunate.

    During his time as British Prime Minister, a wall collapsed at a secondary school in Manchester while Tony Blair was attending a Tax Conference in Brussels. Even with no recorded fatality, Blair handed the affairs of the British government at the Conference over to his Foreign Secretary and flew back to Manchester to side with the victims of the wall collapse. In 2016, following multiple police shootings in Dallas, former President Barack Obama not only visited the families of the five deceased officers but also attended an interfaith memorial service in their honour. Well, I hope to come back to that later.

    Going back in time, previous governments would have tamed the insecurity monster if only they had the sincerity of purpose and the will to go to its root causes as most professionally and honestly as possible. But that never happened, due to what only the handlers of Nigeria could explain. In terms of security, no one knows where Nigeria is presently headed. In our very eyes, kidnapping has become a major business in the country but unfortunately, the system has failed in the most elementary detective form to follow the money paid as ransom.

    The fear and the authority of a policeman command social order. The fear and the command of a soldier brings more powerful social control on the society, simply because he represents not just the government but also confirms the authoritative use of force being exclusive to the state. Nevertheless, insecurity has a way of getting a life of its own. For instance, nobody can have a pattern at Budapest in Hungary and Bukkuyum in Zamfara State. So, we need to do a study of an environment vis-à-vis its historical environmental antecedents in order to initiate security measures.

    Why have successive governments’ investments in security not justified by tangible results and reduction in the violent criminal waves? Yes, previous governments shied away from going the full hog because of political, humanitarian and regional considerations but where has that left us as a country and people? Why do Nigerians seem to have lost confidence in almost all the institutions: police, army, academics, banking, judiciary, tradition, religion, just name it? Why have they been clamouring for restructuring or a return to the 1963 Constitution which gave room for each region to stand alone and develop at its own pace but bring something to the centre?

    Why are those in charge at the top not making use of intelligence adequately and why are the masses running the race by being forgotten? Why are security agencies failing in infiltration tactics, intelligence gathering, proactive sting operations and covert operational planning which could help in destroying terrorist camps from within? Sincerely, doesn’t the present situation call for a revisit to the widely anticipated re-organization of the first responder law enforcement agency in Nigeria – the Nigerian Police?

    *To be continued.

  • ECOWAS and the enemies of Africa

    ECOWAS and the enemies of Africa

    By Comrade Bishir Dauda Sabuwar

    SIR: The ongoing silly propaganda by the pariah nations of Mali, Burkina Faso and Niger against the Economic Community of West Africa States (ECOWAS) will not change the fact that military misrule is archaic and outdated. Military government is chaotic, unstable, dictatorial and repressive. Only an individual without an acute sense of history will rally round a source of instability and repression. Only unpatriotic citizens will support the kidnapping of their democratically elected president, toppling of civilian government, disbandment of parliament and their replacement with Supreme Military Council.

    Now, it is only under an authoritarian government that a clique of soldiers will wake up without consultation and announce that they have withdrawn their countries from ECOWAS.

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    Remember, how long it took Britain to exit from EU? There were a lot of debates not only in the parliament but also in every social gathering. Finally, a sort of referendum had to be conducted before they could exit. But under military oligarchies in Burkina Faso, Niger and Mali, this is not so. The citizens are trash.

    I pity Niger and its Sahelian allies. They are the losers. They left ECOWAS when King Mohammed VI of Morocco has been trying desperately to join the bloc! Morocco has visited 11 member-countries, begging and lobbying them  to join ECOWAS. Morocco once left OAU over the issue of Western Sahara and then re-joined later. So, nobody should beg Niger.

    Today, Europe, a continent has become almost one nation. There is even a European Central Bank. Very soon, election into European parliament will hold.

    But here in Africa we have traitors who are inviting Putin’s Russia to come and help their countries. Russian imperialism! What is Russia offering to Africa? AK 47? Or WAGNER for regime protection?

    Between ECOWAS and the juntas who are agents of imperialism, who are those inviting foreign mercenaries to the region?

    • Comrade Bishir Dauda Sabuwar, Unguwa Katsina.

  • Japa syndrome and drug trafficking

    Japa syndrome and drug trafficking

    By Adekunbi Lawal Jabi

    SIR: News of arrests and seizures published by the National Drug Law Enforcement Agency (NDLEA) on January 28 included a Brazil returnee who was caught at the Lagos International Airport with 60 wraps of cocaine he ingested from Sao Paulo.

    Nigerians who have been following the NDLEA weekly digest for the past three years since the agency rebooted would notice that major arrests of cocaine trafficking into the country always include a man or woman returning from Brazil. Nearly all of the suspects always claimed they were forced to undertake the criminal risk of serving as drug mules because of an urgent need for money.

    Eight countries including Brazil, Indonesia, India, Pakistan, Thailand, Malaysia, Philippines and Russia demand that Nigerians coming into their territories tender visa clearance certificates from NDLEA because some of them are designated as “source countries” for illicit drugs.

    Therefore, anyone coming into Nigeria from such countries is also a potential candidate for scrutiny at the airport. Some traffickers who tried to be smart would first fly to another country or fly an airline that will stop-over in a neutral country in order not to raise a red flag when they touchdown in Nigeria.

    Well, the sad news for them is that it is obvious the NDLEA is ahead of that game, hence the consistency in arresting drug mules coming into Nigeria, especially from Brazil.

    Usually, it always turns out that the families and relations of most of the arrested suspects had no idea about what their kin were up to; and some of them were not aware of the possible implications of travelling to certain source countries where they had no prior roots, either of education or business.

    The truth is today, many have travelled to such countries and failed to return home, while their families lived in the false hope that they were probably trying hard to make ends meet and expected them to be back at a later date. The cold truth is many Nigerians are languishing in prisons of foreign countries for drug trafficking offences.

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    In 2018, at least 600 Nigerians were in Chinese prisons some of whom were incarcerated for drug trafficking. In 2018-2019, Nigerians were the most frequently arrested foreign nationals for drug trafficking in Brazil, and their number was in the thousands. In 2023, 270 Nigerians were detained in Ethiopian prisons for drug trafficking. We have a lot of Nigerians in India, Thailand, Malaysia, and UAE, all incarcerated for drug trafficking.

    This is a wake-up call for parents especially to be aware of this global menace now that the youths are desperate to “japa” out of the country by any means possible.

    Certain countries should raise red flags and also questions from families and friends to those who want to migrate to such countries.

    Migration has a pattern; if you are searching for greener pastures, then you must have some skills or qualifications that are sought-after in the country of interest; if the reason to emigrate is to search for the golden fleece, then the country must be such that is known for providing quality educational service; and for those seeking asylum, we know countries that are favourably disposed to that.

    Nigerians seeking to go abroad need to be wary of fake promises of a good job that could later become a trap that could turn them into drug couriers and ultimately lead to their arrest, prosecution and imprisonment, which would bring shame and reproach on their family and cumulatively dent Nigeria’s image.

    The government through NDLEA is doing the most; the society also could lend a hand to ensure that drug trafficking is stamped out of our country.

    • Adekunbi Lawal Jabi, Abuja.