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Tag: economic

  • The imperative of economic rationality

    The imperative of economic rationality

    • Homo Calculus catches out Homo Economicus

    With the forces of inflation biting harder and with government initiatives to boost local agricultural efforts yet to kick in completely, the decision of the federal authorities to import essential items to stave off dire shortages at home is a timeous retreat from economic brinkmanship which would have put the nation on a perilous path given the current constellation of adverse social, political and historical forces. That the resort to massive importation came with a timeline should reassure those who contend that a patriotic policy has once again succumbed to political expediency.

    Among those who have voiced their concern about this seeming reversal of policy is Akinwunmi Adesina, the President of the African Development Bank. In his view, the policy could put paid to the current efforts to boost local production. This is something Adesina is quite passionate about. But as a former Minister of Agriculture in Nigeria, he ought to have known how difficult if not impossible to boost local food production where certain things are not in place. His own pet project of cassava bread which he claimed to have become the staple food in Aso Rock ended up a risible farce.

      However that may be, the respite should give the authorities the time for a reality check and an opportunity to reset the clock after one year of economic tumult and turmoil. Let it be noted that even in more organic and coherent nations, there have always been fierce arguments and contentions about just how much a particular generation should suffer and endure in order to lay the foundation of prosperity and sufficiency for a future generation.

       In a particularly abrasive and daring Soviet-era novel, a character was heard bemoaning why he must suffer and endure because of a future generation he knew nothing about and couldn’t care less about. In Nigeria, we have heard of state intellectuals during the Babangida era wailing from the rooftop that they sacrificed their today for our tomorrow. Alas, it all turned out a damp squib; a cruel and sadistic hoax.

        To be sure, a broad consensus appears to have crystallized that for Nigeria to make progress and to achieve food sufficiency as it has happened in India, Indonesia, Vietnam, Singapore, China and the fabled Asian tigers, the generality of the Nigerian populace and its overindulged and over-pampered elite in particular will have to be weaned off their overdependence on consumption on foreign food.

      This gastronomic nationalism has to be instilled and burnt into the consciousness of the Nigerian populace either by force or fire or the shock therapy of hunger and dire scarcity such as we are currently experiencing. It is an amazing irony that it is at this particular point in history when western gastronomic imagination is taking a particular preference and partiality for Nigerian cuisine that Nigeria’s elite should be completely swallowed by western consumerist propaganda and its seductive lore.

    For this National Food Emergency Programme to succeed certain things will have to be in place. Otherwise, it will turn out to be an exercise in futility once again. We cannot afford to put the cart before the horse. Some examples from other climes will suffice. When Pandit Jawaharlal Nehru famously insisted that if the newly Independent Indian nation could not feed itself, the citizens could as well go hungry he knew that he had the entire Hindu populace behind him. He had won them to his side by sheer force of example and personal integrity. Winston Churchill dismissed Mahatma Ghandi as a half-naked fakir.

    The proud and aristocratic Indians even in their derelict and fallen state had nothing to be ashamed of. Neither could they be fazed by western civilization. They knew that when the first set of European adventurers arrived in the subcontinent at the tail end of the fifteenth century, the Indians looked down on them with pity and wonder unable to fathom where they had come from with their coarse and funny fabrics when the Indians were already wearing expensive silk. They paid dearly for the contumely.

    After the collapse of the Soviet Empire, Russia was in economic and political ruins. It was a millennial fiasco. The west and its IMF hit squad butchered the Russian economy in an attempt to turn Russia away from its Slavic roots and make the nation a spineless appendage of the west. But Vladimir Putin was having none of that. He put the so called oligarchs to rout through jailing, exiling or outright liquidation. The Russians were forced to draw on their exceptional reserves of fortitude and hardihood. They ate what they could produce and in no time the country and its currency bounced back.

     The lesson from all this is that a great degree of national mobilization is mandatory in all national projects requiring sacrifice and forbearance on the part of a people. Better if the people are already favourably disposed. This can only happen if there is an elective affinity between the people and the government woven around a galvanizing idea of the nation based on core values and a national ideology.

    In the absence of core values and an overarching national ideology, the paradox of governance in post-independence Nigeria is graphically illustrated by considerable success at the sub-national levels and compelling failure at the national level. By weaving tales and stories which struck a favourable cord in the political imaginary of their people, the three regional titans succeeded in galvanizing and mobilizing them for the great task ahead.

       In the brief period in which he held power, Awolowo achieved a revival and renaissance of his Yoruba people through effective mobilization the like of which they never saw in the preceding centuries of war and strife. Nnamdi Azikiwe through a recourse to Igbo Exceptionalism and mythmaking succeeded in frog-matching an essentially rural and agrarian people to the frontiers of national and global reckoning within a relatively short period. In the north, Ahmadu Bello succeeded in weaving together a regional hegemony based on mutual tolerance overridden by ethnic supremacy.

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     Going forward, strife and tension became inevitable as the struggle for power at the centre intensified with each regional hegemon attempting to impose his ethnic vision on the federal format either through destructive propaganda, intellectual intimidation or direct physical threat. Chief Awolowo’s barely disguised contempt and stringent critique of feudalism in the north seemed to have panicked the northern leaders into a deliberate and chilling course of punitive preemption and programmed political destruction while the east, waiting in the wings to profit from the outcome of the tussle, finally lost its patience and opted for the final solution through their mid-level military officers.

    Almost sixty years after, a ruinous civil war, several military coups, mutinies, civil uprisings, religious insurgencies, the odd Sharia gambit and associated disintegrative antics, Nigeria still cannot boast of a broad national consensus on anything. Neither can it come up with core values on which a national ideology so imperative for national mobilization is anchored. This is the unpromising and deeply dissatisfying circumstance in which the Tinubu administration is hoping to reverse the current food drought threatening the country.

    The government has its work cut out for it. Apart from the absence of core values which speak to the structural dysfunctionality of the nation and makes national mobilization dead on arrival, the administration also faces challenges on two fronts which it must do well to negotiate in the coming months.

    First, in order to head off an unfolding crisis of credibility, authority and legitimacy, the government needs to enhance its own cult of personal example. Asking people to further tighten their belt and make sacrifices when tales of outlandish fiscal recklessness continue to surface in the media can only serve to further inflame passion in an already tense and combustible situation.

     Second, government needs to dispel the growing perception that it lacks the will to confront corrupt elements and economic miscreants who have contributed to the economic ruination of the country. This does not bode well for social harmony and cohesion. It will no longer do to continue to insist that the current administration inherited a parlous economy when the perpetrators of the heist are walking about freely and spitting in the face of everybody in spite and contempt.

      Beset as it is on all fronts by unfriendly social and political forces, it is a very awkward moment for the Tinubu administration. They are making it impossible for government to get fully into its stride. Enemy nationals and anti-state actors abound everywhere luxuriating in the stark irrationality that anything is preferable to the current arrangement and that Nigeria will have to be unbundled before it can be bundled back.

      This is not a beneficial political conjuncture at all. Not even our founding fathers were faced by such a gargantuan political quandary. When a group of individuals accumulate enough illicit wealth to hold the state hostage, they make economic progress impossible and imperil the very foundation of the nation in a fundamental manner. It is a very consuming national tragedy.   

    Having made large scale farming impossible in huge swathes of the nation, this constellation of hostile forces may yet render the respite proposed by the administration nugatory by exercising their economic veto power. For example, there is nothing absolutely stopping them from buying off the imported food items and hoarding them. When and if that happens, perhaps it will open the eyes of those in charge to the fact that the nation is faced with an impossible structural conundrum.

  • Nigeria to deepen economic ties with Portugal, Vietnam, Kuwait

    Nigeria to deepen economic ties with Portugal, Vietnam, Kuwait

    • Spain seeks more investment opportunities

    Nigeria would leverage ongoing reforms to deepen bilateral economic relations and enhance opportunities for the development of various sectors of the economy.

    President Bola Tinubu yesterday said the government is focused on developing mutually beneficial relationships with long-standing allies and economic partners as part of renewed efforts at domestic economic development.

    Tinubu spoke while receiving Letters of Credence from the Ambassadors of Portugal, Vietnam, and Kuwait.

    Spain also said yesterday that it has begun the process of seeking more investment opportunities in Nigeria.

    The new Ambassadors who gave their Letters of Credence to the president at the State House in Abuja were Jorge Adao Martins Dos Santos of Portugal; Biu Quoc Hung of the Socialist Republic of Vietnam; and Salim Khalifa Mohammed Almuzayen of the State of Kuwait.

    Tinubu expressed appreciation for Nigeria’s long-standing relations with Portugal, shared interests in trade, culture, oil, and gas, and welcomed the Ambassadors’ economic interests in Nigeria.

    “I have been informed of your economic interest in Nigeria. We need to work together for more localized productions as regards mineral deposits. I have an open-door policy, and you can always reach me through the Ministry of Foreign Affairs and my Chief of Staff, Right Honourable Femi Gbajabiamila,’’ Tinubu said.

    In his response, the Ambassador of Portugal said investors from his country have a keen interest in Nigeria, and that the trade with Nigeria on gas predated the war between Russia and Ukraine, and will be sustained.

    “I will work on our agreements on improving economic relations. There is no shortage of interest in the areas of development where we can be partners. We are one of the highest buyers of gas from Nigeria, and we remain grateful for the supplies.

    “We have long-standing mutual relations when it comes to energy. Before the Russia and Ukraine war, we have been getting our gas from Nigeria. Portuguese companies are also handling the rail line construction from Kano to Niger Republic. It will be ready in two years,’’ Dos Santos said.

    In his meeting with the Ambassador of Vietnam, Tinubu said the manufacturing sector in Nigeria is ready to benefit from the automating skills and technology of the Asian country.

    “Thank you for coming to work in Nigeria. We share a lot with Vietnam in terms of diversity and values.

    “We really value our bilateral agreements with your country, Vietnam, especially in the area of technology. We look forward to adding more value to the partnership with you in terms of collaboration for development,’’ Tinubu said.

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    Responding, the Vietnamese Ambassador said: “Under your leadership, I see Nigeria overcoming most of her challenges and taking its place among the happiest people in the world.’’

    Ambassador Hung added that he is in the country to strengthen relations and improve economic ties.

    In another meeting, Tinubu thanked the Ambassador of Kuwait for his country’s long-standing good relations with Nigeria and extended his appreciation to the Emir and the Crown Prince.

    “I am glad we are pulling strings to enhance the value of our relationship. We are both committed to the development of our people and will explore opportunities for economic ties. I have an open-door policy so you can always reach me,’’ Tinubu said.

    The Ambassador of Kuwait assured the President that he would do his best to strengthen bilateral ties for the mutual benefit of both countries.

    Spanish Ambassador to Nigeria, Julian Sell, said his country was looking at more investment opportunities in Nigeria.

    Sell spoke during a visit to Minister of Power, Chief Adebayo Adelabu.

    He acknowledged the crucial role of the power sector, describing the power sector as crucial to Nigeria.

    According to him, in his interactions with Spanish companies, the question about the power sector in Nigeria and how to play more active roles was always coming up.

    “We are trying to add a more ambitious agenda to our present role in Nigeria. When it comes to Nigeria, we have always worked with the Economic Community of West African States (ECOWAS), we have a strong programme with ECOWAS that covers many sectors and one of them is in the area of renewable energy.

     “We consider ourselves the founding fathers of the ECOWAS Centre for Renewable Energy and Energy Efficiency. Through grants from the Spanish government, we have been part of the center’s activities with a number of our programmes. We also want to be active in the renewable energy projects in Nigeria.

    “We are interested in electrification projects in rural area. Presently, we are working with a private company in Rivers State, it is part of the programme we have with the European Union and I want to inform you that we are starting another phase of that programme soon. When we are clearer about what the role of the Ministry would be, we will come back to you and your team,” Sell said.

    He added that Spain has a strong private sector presence in areas of renewable energy in most parts of  Africa  and would want more Spanish companies’ presence in Nigeria.

    He said the embassy would soon be organizing a programme through its trade and economy office in Nigeria for the Spanish companies to know more about Nigeria.

    On the Distribution Companies (DISCOs), he said a Spanish company was already working with key DISCOs such as Abuja Electricity Distribution Company (AEDC) and Eko Electricity Distribution Company (EKEDC) in resolving challenges in areas of billings and revenue collection.

    Adelabu expressed appreciation on the Spanish government’s ambitious agenda in Nigeria adding that his meeting with the  Ambassador was to also intimate him with the  opportunities in the sector and the government’s commitment  towards sectorial reforms,  targets and the strategies put in place to achieve the targets.

    “These targets are all geared towards enabling Nigerians to live good lives by giving them access to energy.  To have impactful and value-adding institutions in health, education and ultimately to grow industries and attract investors,” Adelabu said.

    He said the over reliance on import by Nigeria is impacting on foreign exchange and the government is putting plans in place to change the situation.

    “The pressure is high since we import virtually everything despite our natural endowment in terms of resources.

    “The Federal government plans to promote export of value added products by developing the local manufacturing industries. This plan is also aimed at gaining international acceptance and create employment for Nigerians,” Adelabu said.

    He said part of the power sector reforms goal is the expansion of energy access, bring in more participants into the energy net,  grow industries and institutions through the power sector.

     “Our energy transition goal is also to collaborate with international collaborators in order to reduce carbon emission in the environment.   We plan to achieve net zero emission by  year 2060 as our long term target,  the medium targets is to achieve about 30,000mw of power out of which 30 percent would be renewable energy by year 2030,” Adelabu said.

  • Nigeria: Economic crisis or crisis of underdevelopment? (2)

    Nigeria: Economic crisis or crisis of underdevelopment? (2)

    In a characteristically pungent essay on Africa’s crisis of underdevelopment written in the early 1980s, the late Professor Claude Ake, posed the question: ‘The Present Crisis in Africa: Economic Crisis or Crisis of the State?’, the Marxian political economist contended that Africa’s developmental dilemma was as much an economic crisis as it was, more fundamentally, a crisis of the state. He contended that although the African crisis manifested concretely and dramatically in economic terms- ‘the long and continuing decline in real income, the swelling tide of unemployment, the chronic debt problems, the declining productivity and negative growth rates and now the threat of starvation to over 150 million people’ – its root causes lay in the character of the state (politics) and the value orientation of the neocolonial elite.

    If considered within the context of his classic, ‘Social Science as Imperialism’, Claude Ake also locates underdevelopment in Africa as a function of the intellectual dependency of the continent, the erosion through slavery as well as colonial and neocolonial imperialism of the cultural and psychological self-confidence of the continent resulting in the helpless subjection to policy hegemony of external forces whose continued global dominance can only be a function of the continued dependency of the weakest and most vulnerable and exploited members of the extant global order.

    For most liberal and neoliberal economists, the solution to Nigeria’s protracted economic crisis lies in the manipulation of monetary policy instruments to achieve targeted interest rates, currency exchange rates, reduction in inflation rates, achieving a conducive business environment, and favorable conditions for profit repatriation by foreign investors among others. Even when lip service is paid to boosting agricultural productivity, for instance, to break the debilitating dependency on oil revenues, it is assumed that simply allocating humongous funds to the sector will do the trick. Hardly any attention is paid to the no less critical but arduous task of organizing Nigerian farmers into modern cooperatives with the requisite technological and knowledge backup to modernize their operations and enhance their productivity; an imperative articulated in methodical detail in the writings of Chief Obafemi Awolowo.

    For those who take an essentially economically technicist view of the Nigerian economy, they had cause to express optimism with what they saw as the impressive progress of the economy at a time, during the oil boom of the early seventies to mid-1980s, when their more radical and non-orthodox colleagues urged caution and warned about the then impending catastrophe we confront today. One of such optimistic economic historians, Professor R.O. Ekundare, wrote in the mid-1970s that “There is a strong belief that the Nigerian economy has passed the stage of economic take-off and reached that of self-sustaining growth. A purely subsistence economy a century ago has been transformed into a fairly sophisticated market economy”.

    It was in response to such scholarly delusions that the book ‘Path to Nigerian Development’, a collection of radical essays on the evolution, root causes, characteristics and concrete paths out of the conundrum of underdevelopment edited by Professor Okwudiba Nnoli was published in 1981. Although written from the prism of radical revolutionary ideology, its insights are still useful to an understanding of and grappling with the challenges of underdevelopment in contemporary Nigeria.

    The hard-working duo of Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun and the Governor of the Central Bank of Nigeria (CBN), Mr. Olayemi Cardoso, along with other members of President Bola Tinubu’s economic management team are striving to rescue the economy from inherited and deeply rooted pathological dysfunctions. But finding enduring solutions to what is both an economic crisis and the more long-term challenges of underdevelopment will necessitate going beyond superficial economic tinkering or shuffling of economic indices. The non-economic is as critical to the resolution of this crisis as the essentially economic.

    Historically, even when the policies from the toolkit of the orthodox liberal economist appear to be working and achieving the objectives for which they were adopted, there is no guarantee that a country’s goal of transcending and overcoming debilitating underdevelopment are being met. The late Professor Eskor Toyo, the radical political economist, made this point in his exhaustive study of the implementation of the Structural Adjustment Programme (SAP) in Nigeria under the military president, General Ibrahim Babangida’s regime, titled, ‘Economics of Structural Adjustment: A Study of the Prelude to Globalization’.

    In his words. “The evidence presented in this chapter shows that the SAP has not failed in all respects, as has sometimes been implied in some criticisms. It has achieved some of the aims set for it: a positive ‘growth’ rate, improved utilization of capacity, increased local sourcing of raw materials, an increase in non-oil exports, a rescheduling of the debts, the lightening of the debt burden through debt conversion, an adjustment of the exchange rate towards what the IMF and the World Bank would accept as ‘realistic’, an increase in saving, more Naira in the hands of the Federal Government, ‘international confidence’ and the extension of some credit or aid to Nigeria thanks to this confidence etc”.

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    As Toyo tersely put it, “The Structural Adjustment Programme (SAP) has been described even by some of its supporters as ‘tinkering’ or ‘fine tuning’. Unless the orientation of policies is right, mere adjustment of the status quo is irrelevant”. The more orthodox and no less brilliant liberal economist, Professor Pius Okigbo, came to similar conclusions as regards the attainments of SAP. In a lecture delivered under the auspices of the Obafemi Awolowo Foundation in 1993, Okigbo had noted that “In Nigeria, after six years of SAP, two of the major indices used to evaluate performance have begun to show substantial gain. The rate of growth of gross domestic product had turned from 3.4% per annum from 1980-1985 to a positive rate, on the average, of 3.5% per annum in the period 1987-1991…Secondly, the current account in the balance of payments has turned into a surplus since 1989 hitting $5.1 billion in 1990 but slipping to $1.3 billion in 1991. This performance is a strong vindication of the underlying logic of SAP”.

    Okigbo was however quick to note at the same time a “strong degeneracy” in the performance of SAP in terms of inflation, unemployment, investment and capacity utilization. If we are to learn from history, the appropriate question should be, How then do we move from addressing the challenges of the current severe economic crisis, which is an indispensable and critical objective in the short term, to dealing with the structurally embedded crisis of underdevelopment? The most concise and incisive response I have found to this question was given by Professor Nnoli in a lecture at the University of Lagos in 2010 during a Summit to commemorate fifty years of nationhood in post-independence Nigeria.

    Stressing the need for a new political and developmental discourse in Nigeria, Nnoli submitted that “Is it not the responsibility of politics and the state to assist the people in the rural areas and elsewhere in the country to apply science, technology and creativity in the production of food to satisfy their needs and traditional consumption habits at increasing levels of modernity; using local and, therefore, affordable resources; construction of shelters for self and family, using local and, therefore, affordable resources; and the creation of modern health products, again using local and, therefore, affordable resources? How to carry out all these tasks certainly deserves political discussion”.

    Continuing, Professor Nnoli was of the view that “Also deserving of political discourse is the need for economic enterprises at all levels, all sectors and irrespective of whether they are public or private, to possess research and development (R and D) divisions. Their  job is to create new products using local resources. Such products must be geared towards the satisfaction of the basic needs and consumption habits of the people,  ensuring that exports are the excess of local consumption, while imports are predominantly items which satisfy their needs and traditional consumption patterns but are not produced within the country or are more efficiently produced abroad”.

    Such a notion of development predicated first and foremost on patriotism and self-reliance would at once severely limit the criticality of foreign exchange (dollars) in our developmental process. It would unleash the trapped potentials both of our intellectuals and the people as a whole and enable them regain their self-confidence in their ability to actualize the development of their country.

    Let me end with a quote from another work by Professor Nnoli titled ‘Nigeria: The Failure of a Neo-colonial Society’ published in 1993: “What is needed is a concept of development which is neither viewed as catching up with the advanced countries nor fixated on the procurement of artifacts. Under certain conditions, artifacts emanate from the development process and reflect it. This is so only when they are the end products of the efforts of the population to apply their creative energy to the transformation of the local, physical, biological and sociology-cultural environments. This is the case in advanced countries. They cease to mirror development when they are provided by foreigners; the local population merely acquires the products of other people’s development”.

  • Economic crisis and regime instability

    Economic crisis and regime instability

    Sir: There has been so much hoopla on the adverse impact of the economic reform policies of the current government. We think that examples exist elsewhere in the global South to guide our attitude and perhaps, the response of the government to the grave situation that not only threatens the economic well-being of the people but also, the popularity of the government and even regime stability.

     Politically, austerity measures are carried in the background of ever-present authoritarianism. However, in Nigeria, we practice democracy hence debates and disagreements are some of its characteristic features. What is significant is that the repressive temper of dictatorships hurts economic recovery in the short- and long-run. Hence, politically, manifest authoritarian regimes more often collapse during economic crises. However, equitable governments steer through economic crises relatively unscathed.

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    The experiences in Indonesia and Malaysia are of relevance to guide our country. In other words, differences in cross-border policies produce dramatically different outcomes during crises. When asset specificity divides supporters as in Indonesia, the government and the people desire mutually incompatible policies. The ensuing incoherence in the strategy of renewal of the economy is followed by regime instability. When coalitions are not divided by asset specificity, which bears the brunt of market reforms, for example during the financial crises in Malaysia, regimes adopt radical measures that enable them to survive. Indeed, such regimes interpose in the market for redirection and to beneficiate capital goods importation for domestic production of the needs of society.

     Indeed, in the history of Nigeria, the economic crisis between 1980 and 1982, threw up incompatible policy choices. The continuation of those policies of austerity, grand-scale borrowing to fund consumption and passing the bulk of the pains to the ordinary person have always resulted in hardship. Our economic history has taught us that such policies would not help in the long run. Therefore, the functionaries of the current government need to think through the situation.

    This is why I would recommend that our people in the government find and read the account of Thomas B. Pepinsky on Economic Crises and the Breakdown of Authoritarian Regimes: Indonesia and Malaysia in Comparative Perspective. It is a relatively old book published in 2009.

    •Onoho’Omhen Ebhohimhen, PhD,Benin City

  • Experts proffer solution to economic problems

    Experts proffer solution to economic problems

    Some economists have proffered solution to the challenges facing the country.

    They urged President Bola Ahmed Tinubu to cut taxes, stop increase in money supply and reduce over regulations, to fix and leapfrog the economy to serve the populace.

    Speaking in Ibadan, Oyo State capital, during a freedom seminar organised by the Nigerian Libertarian Project, in collaboration with Freedom Institute, the economists, Bayonle Fesobi, Econ Bryan and others attributed increase in the rate of crime to poor economic conditions of most Nigerians and harsh business environment.

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    Delivering a lecture on the topic: “How to Fix the Nigerian Economy in Three Steps”, Byran, the guest speaker, said insecurity being experienced in the country was occasioned by the poor state of the economy.

    Providing solution to the crisis, the economist said if the government could stop increase in money supply, reduce taxes and cut regulations for business owners, the economy would be transformed within 12 months.

    Fesobi, the project officer of Nigerian Libertarian Project, said government needed to cut taxes and reduce over regulation, in order to open up the economy to encourage entrepreneurs.

    He said the gathering was aimed at providing youths with the knowledge needed for them to play a role in the cause for economic freedom.

  • Navigating the turbulent economic waters together

    Navigating the turbulent economic waters together

    Nigeria’s economic landscape in 2024 presents a complex picture. Excess liquidity in the financial system threatens inflation, while a volatile foreign exchange market adds another layer of uncertainty. To address these challenges, the Federal Government has outlined a strategic plan through collaborative efforts between the Central Bank of Nigeria (CBN) and the Ministry of Finance. Assistant Editor, NDUKA CHIEJINA examines the issues.

    The Nigerian financial system currently faces a situation of excess liquidity. This means there’s a surplus of money circulating in the economy. While seemingly positive, this can have detrimental effects. Increased money supply can lead to inflation, a scenario where prices of goods and services rise, eroding purchasing power. This can disproportionately affect low-income households and stifle economic growth.

    The CBN tools

    The CBN, as Nigeria’s central bank, plays a crucial role in managing liquidity. It possesses various tools in its monetary policy arsenal to combat inflationary pressures. Some key measures include raising the benchmark interest rate, currently at 24.75 per cent to discourage borrowing and encourages saving. This reduces the amount of money circulating in the system, dampening inflationary pressures. The CBN gradually increases rates to avoid stifling economic activity.

    In addition, the CBN can engage in Open Market Operation (OMO) by selling government securities to banks. This absorbs excess liquidity from the system. Conversely, buying securities can inject liquidity when needed. OMOs allow for targeted liquidity management.

    The Cash Reserve Ratio (CRR) is the minimum amount of deposit banks must hold as reserves with the CBN. Increasing the CRR reduces the amount of money available for lending by banks, effectively tightening the money supply. It’s a powerful tool, but requires careful implementation to avoid hindering lending and economic growth.

    Fiscal responsibility

    The Ministry of Finance plays a crucial role in managing government spending and revenue generation. To curb inflation, the ministry is trying to implement several measures such as reducing government budget deficits by cutting non-essential spending or increasing tax collection which can help dampen inflationary pressures. However, striking a balance is crucial to avoid hindering essential public services.

    Subsidies on certain goods can contribute to inflation. The government is executing a phased removal of subsidies to certain sectors while ensuring social safety nets are in place to protect vulnerable populations.

    Strategic investments in infrastructure development can increase productivity and efficiency in the long run. This can help address supply chain bottlenecks that contribute to inflation.

    To effectively tackle foreign exchange (forex) volatility, the Central Bank of Nigeria (CBN) and the Ministry of Finance can collaborate on several strategies.

    The CBN and the Ministry of Finance should align on exchange rate policies. This includes deciding on the appropriate exchange rate regime (e.g., fixed, floating, managed float) and communicating a consistent message to the market.

    The CBN manages foreign exchange reserves, which are crucial for stabilising the currency. The Ministry of Finance can support by ensuring adequate funding and transparency in reserve management practices.

    While the CBN can intervene in the forex market by buying or selling foreign currencies to influence exchange rates the Ministry of Finance can coordinate by providing necessary backing and support for these interventions.

    Regular dialogue and coordination between the CBN and the Ministry of Finance are essential. They have agreed to share data, discuss policy options, and jointly formulate strategies to address forex volatility.

    Both the Ministry and the CBN are collaborating to enhance regulatory measures that prevent speculative activities in the forex market and ensure transparency and fairness in foreign exchange transactions.

    They are working together to develop and promote hedging instruments (such as futures, options and swaps) to help manage currency risk for businesses and investors. Futures, options, and swaps are financial instruments used in the markets to manage risks associated with price fluctuations (including foreign exchange rates) or to speculate on future market movements. Each derivative serves a specific purpose and provides investors and institutions with tools to hedge against uncertainties in the financial markets.

    The Ministry of Finance can implement fiscal policies that support exchange rate stability. This includes managing government spending, taxation, and borrowing in a manner that doesn’t exacerbate forex volatility.

    Both institutions continuously monitor the forex market and share critical information. This helps in understanding market dynamics and taking timely actions to stabilize the exchange rate.

    Addressing underlying structural issues in the economy, such as improving export competitiveness, reducing import dependency, and promoting diversification, can also contribute to forex stability. The Ministry of Finance can lead efforts on these structural reforms.

    By working closely together and leveraging their respective mandates and capabilities, the CBN and the Ministry of Finance can enhance Nigeria’s ability to manage foreign exchange volatility effectively, fostering economic stability and growth.

    Collaboration is key:  The CBN/Ministry of Finance synergy

    The success of the government’s economic plan hinges on effective collaboration between the CBN and the Ministry of Finance. Here’s how their  synergy can make a difference. Inflation can be likened to a runaway train, where the Central Bank of Nigeria (CBN) attempts to slow it down using interest rate adjustments. However, if the Ministry of Finance keeps adding fuel by increasing government spending, inflationary pressures persist.

    When monetary (CBN’s interest rate changes) and fiscal policies (Ministry of Finance’s fiscal consolidation) work in tandem, their impact on inflation is amplified. This combined approach reduces the amount of money circulating in the economy, curbing inflation effectively.

    Aligned policies send a strong signal to the market about the government’s commitment to tackling inflation, boosting confidence among businesses and consumers. It also attracts foreign investment and promotes economic stability.

    Regular sharing of economic data and forecasts between the CBN and the Ministry of Finance is crucial. It informs policy decisions, enhances market confidence, and helps manage public expectations.

    Achieving policy alignment is not without challenges, such as balancing fiscal objectives, political pressures, and timing policy adjustments for optimal impact.

    Development Finance: Shifting gears

    The recent decision by the CBN to withdraw from directly participating in development finance interventions, such as the fertiliser distribution programme, and hand over these responsibilities to the fiscal authorities, presents a significant shift in economic policy.

    While this move might raise initial questions, it has the potential to positively impact the effectiveness of the government’s collaborative efforts to achieve economic stability, particularly when viewed in the context of their joint fight against inflation.

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    By relinquishing development finance activities, the CBN can dedicate its resources and expertise to its core functions–managing monetary policy, maintaining financial system stability, and issuing legal tender. This sharper focus can lead to more effective monetary policy implementation, potentially aiding in inflation control efforts.

    Shifting development finance to the Ministry of Finance places the responsibility for budgetary allocation and programme execution squarely on their shoulders. This increased accountability can incentivise the Ministry to prioritise efficient resource allocation and target programmes for maximum impact.

    Budgetary allocations for development finance programmes channeled through the Ministry of Finance become subject to the usual legislative oversight processes. This can enhance transparency and minimize potential misuse of funds.

    With both monetary and fiscal policy tools concentrated under the purview of the government (CBN and Ministry of Finance, respectively), the potential for a more unified economic management approach is amplified. This can facilitate smoother collaboration and communication between the two entities.

    The Ministry, with its broader fiscal mandate, might be better positioned to take a holistic view of the economy and prioritise development finance interventions that complement its overall economic strategy. This could lead to more targeted and impactful programmes. However, a smooth transition and maximizing the potential benefits require careful consideration of potential challenges.

    The CBN’s exit from development finance interventions presents a unique opportunity to strengthen collaboration with the Ministry of Finance. By leveraging each other’s strengths and fostering a more unified approach, this shift can contribute to a more stable and efficient economic environment. The success of this collaboration, however, hinges on effective communication, capacity building within the ministry, and a shared commitment to achieving long-term economic stability.

    The CBN and the Ministry of Finance can collaborate in several ways to fight inflation and boost the economy by jointly addressing insecurity.

    Here are some possible strategies

    The CBN can work closely with the Ministry of Finance to align monetary policy with fiscal policy. This coordination can help manage inflation by ensuring that both entities work in harmony to control money supply, interest rates, and exchange rates.

    The Ministry of Finance can collaborate with the CBN to create special funding initiatives aimed at addressing insecurity. This could involve allocating funds to enhance security infrastructure, support law enforcement agencies, and invest in social programs that address the root causes of insecurity.

    The CBN, in collaboration with the Ministry of Finance, can design and implement targeted interventions to address the economic impact of insecurity. This may include providing financial support and incentives to businesses affected by insecurity, particularly in vulnerable sectors like agriculture and manufacturing.

    The CBN and the Ministry of Finance can work together to strengthen the regulatory framework to combat insecurity. This may involve developing new policies and regulations to monitor and control illicit financial flows, money laundering, and terrorism financing.

    Both entities can collaborate to boost investment in sectors that enhance security and provide economic opportunities. By creating an enabling environment for investors, such as providing tax incentives and improving infrastructure, they can attract investments that contribute to both security and economic growth.

    Collaboration between the CBN and the Ministry of Finance should involve engaging relevant stakeholders, such as state governments, security agencies, and private sector organiSations. This multi-stakeholder approach can ensure a comprehensive and coordinated effort towards addressing both inflation and insecurity.

    Overall, a collaborative approach between the CBN and the Ministry of Finance can contribute significantly to tackling inflation and boosting the economy while addressing the challenges posed by insecurity in Nigeria.

    While the government’s plan has merit, it’s important to acknowledge potential challenges. Global economic events, commodity price fluctuations and exchange rate volatility can all impact inflation and complicate the implementation of policy measures.

    The impact of monetary and fiscal policy adjustments might take time to be fully realised, requiring patience and sustained commitment to the strategy. Measures such as interest rate hikes, subsidy reductions, and tax increases can have a disproportionate impact on lower-income households. The government needs to consider social safety nets to mitigate these effects.

    Edun and Cardoso speak

    At the last Monetary Policy Committee (MPC) meeting in Abuja, the CBN Governor Mr Olayemi Cardoso stated that “does donation of over two million bags of fertiliser suggest a return to developmental interventions? The answer is no, it doesn’t. And let me explain why it doesn’t.

    “Because we have been consistent in saying that we will withdraw from direct interventions. We have been consistent in sales.

    “So, we have also been consistent in saying that we will work with those who we believe have the capacity to successfully intervene in whatever manner they can. And that, by the way, includes even capacity building. It’s not strictly speaking, you know, direct funding or anything like that. It isn’t, it extends to a whole host of different areas.

    “So, where we see that that capacity is there, the central bank would be happy to partner and that goes similar to what one had just said about the collaboration that we have had with regulatory authorities and also law enforcement authorities.”

    In Washington DC last week, the Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun confirmed the administration’s commitment to tackling the issue of surplus money circulating within the economy, stating that: “We are determined to pin down Ways and Means to alleviate the pressure of excess money in the system.”

    This measure, he explained,  is aimed at facilitating a collaborative effort between fiscal and monetary authorities to reduce inflationary pressures and stabilise the exchange rate.

    “We need to borrow less and focus more on domestic resource mobilization.”

    Collective effort towards stability

    The Federal Government’s collaborative approach to tackling excess liquidity, inflation, and economic instability presents a promising path forward. The success of this plan will depend on the effective implementation of the outlined measures, continuous monitoring and adjustments based on economic data, and clear communication with the public.

     Ultimately, achieving economic stability requires a collective effort from the government, the private sector, and the citizenry. By working together, Nigeria can navigate through these turbulent economic waters and emerge on a stronger foundation.

  • Tourism, entertainment industry comatose tools for economic development

    Tourism, entertainment industry comatose tools for economic development

    By Somadina Okorie

    The truth be told, every country of the world is a tourist destination, but it is by choice to make ones such attractive. Implying to say, that the main goals of controlling the flow of people, goods, and services into and out of any nation is to keep track on entry and to prevent illegal immigration, safeguard the lives and property of its citizens, maintain national sovereignty, border control, and to keep foreigners from taking advantage of the opportunities specifically designated for citizens. Not to refuse visitors entry on vacation and or tourism.

    The above stated reasons could be some of the explanations for why, only seventeen (17) countries in the world—the bulk of which are West African nations—can enter Nigeria without a visa. The goal of this article is to examine how such a hash policy could harm the Nigeria’s ability to expand economically and its diplomatic ties with other nations. 

    The Ministry of Tourism, whose primary duties include developing policies and promoting tourism in Nigeria, has yet considered pushing for more nations to be granted free visa entry into Nigeria at least for a minimum of thirty (30) day duration. 

    there is no gain saying that giving people easy access to enjoy a country’s vast natural resources is the best way to highlight and promote them. Therefore, there is no legitimate reason why a citizen of the United States, Canada, Europe, or the United Kingdom should need to apply for a visa in order to travel to Nigeria for tourism. 

    Most citizens of wealthy nations would probably not want to live in Nigeria instead of their home countries, but could be interested in visiting for holidays. They are however tragically discouraged by the unpleasant experience of having to wait in line for a visa to a country that is clearly still developing. They rather travel to other countries that requires visas on arrival.

    The current foreign exchange crisis in Nigeria’s economy has resulted in an endless shortage of foreign exchange, which has significantly raised the cost of converting Naira into US dollars, especially on the black market. kudos to the intense efforts of the current government. 

    However, because of this volatile situation, which has increased tension in the nation and negatively impacted Nigeria’s standard of living due to an excessive reliance on oil, it has become increasingly difficult for succeeding governments to achieve economic growth, which would typically result in an improvement in the standard of living for citizens. 

    In the past eight years, President Buhari’s administration failed to find a novel way to wean Nigeria off its exclusive reliance on oil. For example, diversifying the economy and looking into other promising industries, like tourism, which meticulous study shows loses billions of dollars in untapped revenue, would not have simply saved the country of this quagmire. 

    Diversifying the economy from oil to other sector-based economy such as tourism and entertainment will drive sustainable growth, increase revenue sources, and create job opportunities if proper government policies are formulated in that direction. 

    This is understandably so because Nigeria has a unique and multi-cultural structure which avails us of rich cultural and tourism potentials that can drive growth if properly harnessed and sustainably developed alongside entertainment. 

    Nigeria with over 250 ethnic groups with diverse cultures, languages, arts, as well as a unique environmental endowment by nature which implies that each ethnic group can leverage areas of their comparative creative and tourism advantage to grow home or local economy. 

    Today, Nigeria has regular passport holders from  a paltry seventeen (17) countries only who are visiting the country for tourism purposes including Benin, Burkina Faso, Cameroon, Cape Verde, Chad, Gambia, Ghana, Guinea, and Côte d’Ivoire. These countries do not require visas and will be granted permission for short-term stay on arrival as reported by Embassies.Net.

    On the other hand, a recent report by Henley Passport Index, disclosed that the Nigerian passport can cover about forty-five (45) visa-free countries enabled in 2024. 

    It is therefore worrisome that despite our rich cultural and tourism potentials, Nigeria has refused to advance freer visas for major developed and developing countries as well as dole out trade incentives to countries interested in exploring our tourism potentials, instead we permit such issuance to underdeveloped struggling nations with little or no positive implication to the development of our tourism sector.

    Nigeria as a struggling nation in terms of economic growth, has refused and or neglected to assert control over its resources in this respect, hindering the full realization of the benefits that should ordinarily accrue from global success through tourism and entertainment.  

     Tourism Industry in Nigeria Today

    Because Nigeria is home to so many different ethnic groups, as was already mentioned, it is well known that much of the country’s tourism is focused on events. However, if time is  taken to explore our country’s rain forests, savannah, waterfalls, and other natural beauties, we will discover much more to offer. 

    According to sources, visitors spent over US$2.6 billion in Nigeria in 2015. However, recent data shows that the amount has significantly decreased, reaching an all-time low of US$1.5 billion since 2017. 

    Nigeria today has a more than enough tourism destination to wit; the Olumo Rock in Abeokuta, Sungbo’s Eredo in Ijebu Ode, Ogun State, Tarkwa Bay Beach in Lagos, Kajuru Castle located in Kaduna State, Tinapa Resort Calabar, Obudu Mountain Resort, Hot and Cold Water in Ikogosi Warm Springs, in Ekiti State, Yankari Game Reserve located in Bauch State, and the biggest fishing settlement in west Africa located in Oyorokoto in Andoni LGA of Rivers State and many other places that are yet to be explored and too many to mention here.

    A lot has been said about the tourism industry which is being presently regulated and managed by the Federal Ministry of Information and National Orientation. In an effort to increase awareness of the nation’s tourist industry, the Miss tourist Nigeria Pageant was established in 2004. The winners in the years 2004, 2005, and 2006 were Gloria Zirigbe, Abigail Longe, and Shirley Aghotse. Regretfully, the ministry’s pageantry and other initiatives haven’t done enough in promoting tourism in Nigeria, sad to say.

    Even Nigerians are unaware of the majority of the listed tourism destinations, let alone visitors from other countries. The list goes on. The most elegant Governor’s exuberant efforts in the name of Tinapa is turning into a wasted endeavor, to say the least. 

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    much is yet to be explored of the interesting men and women of a specific tribe living on the mountainous region Taraba. We are of the view that they and or there, is a tourism goldmine that hasn’t yet been explored. 

    The Entertainment Industry : Because of the vivid artistry of imaginative, gifted, and adaptable musicians an performers, Nigeria’s entertainment sector undoubtedly shines as a light of innovation. These individuals have won numerous prestigious prizes throughout the world, projecting the industry on a worldwide scale over the years. 

    Nigeria’s entertainment sector has drawn attention from across the world, which in turn provides a platform for talents to develop and make a significant economic contribution to the country.

    It is therefore no secret that over the years, our music industry for example, has attracted audiences from all over the world. Artists such as Burna Boy, Wizkid, Davido, Tems, Rhema, Yemi Alade and a host of others have garnered global recognition with their music traveling through different continents and for the first time and recently, Asia. This recognition has given rise to Afro beats a music genre exclusively originating from Africa; thus leading to multiple lucrative record deals, concert tours and brand endorsements from the international community.

    Okoye Leo in his article titled: “The Rise of Afrobeat and its Global Recognition” recently published by the Voice Magazine, has the following to say with specific reference to 2023 thus: “The year 2023 marked a watershed moment for African music and afrobeat, witnessing a surge in influence and accomplishments by renowned artists. The introduction of a new Grammy category, chart dominance, and the global recognition of female artists, such as Tems, who achieved the historic feat of being the first Nigerian artist nominated for an Academy Award (Oscars), exemplify the industry’s ascendancy. Tems, breaking barriers not only secured a nomination for “Lift Me Up,” an original soundtrack for Ryan Coogler’s Black Panther: Wakanda Forever, alongside Rihanna but also clinched a Grammy award for Best Melodic Rap Performance with Future and Drake for “Wait for U”. Tiwa Savage, another trailblazer, etched her name in history as Nigeria’s first artist to perform at the coronation of a British Monarch, delivering a captivating rendition of “Keys to the Kingdom” at King Charles’ coronation. The global appeal of Nigerian Afro-pop artists has surged, with Rema’s memorable performance at the 2023 Ballon D’Or and his subsequent Billboard Top Afrobeat Song win for “Clam Down Remix” featuring Salena Gomez. Burna Boy, securing the accolade of Top Afrobeat’s Artist and the inaugural “Billboard Top Afrobeat’s Artiste”, further solidifies the international recognition garnered by Nigerian artists”.

    No doubt, the industry was projected to experience exponential growth in terms of its revenue from an initial $4 billion annual generation in terms of revenue creation between the year 2013- 2014 to an estimated $14.82 billion in 2025 According to the NECLive report, ten (10) years after, in 2024, the timeline currently presents the entertainment and media revenue to be about $10.8 billion. Although this is significantly lower than the United States of America that is put at $598billion as of 2014, but we can’t also deny that if properly harnessed Nigeria is starring at a whopping billions in naira and other hard currencies.

    It is also important to note that Nigeria was next to India in 2014 with India having an estimated sector size worth of about $17billion and capable of generating an estimated $22.2 billion in revenue per annum. The Indian entertainment industry is already closing on its estimated Rs. 2.34 trillion (USD 29.2 billion) to maintain a Compound Annual Growth Rate (CAGR) of 10% according to major reports.

    A reports by ChartsAfrica on X, says Burna Boy has had eight (8) of the ten (10) highest-grossing concerts by an African Artist in between 2022 and 2023. The Nigerian music star has not just made international performances part of his routine to make additional revenue from his work but has done so by selling out historical centers on multiple occasions if not in all corners of the world.

    The Nigerian Music Star is reported to have sold out 36,585 tickets on his show at LA DEFENSE ARENA in Nanterre, France and a total of 15,165 tickets at his London show in 02 ARENA according to topchartsafrica. Wizkid on the other hand is reported to have sold out his concert at 02 ARENA in London with over 16,938 tickets and 12,901 tickets in Madison Square Garden in New York while Davido sold out London’s highly acclaimed 20,000 capacity 02 ARENA in his most recent concert Timeless concert held in January 2024.  

    Conclusion  

    The prospects of Nigeria’s tourism and entertainment industry to grow our continuous plummeting economy is promising and this is driven by the job creation potentials potentials of the aforementioned industries, foreign exchange earnings, infrastructure development and digital innovation. 

    However, leveraging on these potentials requires a concentrated effort from all major stakeholders particularly the government in providing policies aimed at fostering global collaborations by creating an enabling environment for creativity and foreign investment as well as engaging industry stakeholders, private investors, artists, and industry associations to implement supportive policies and incentives aimed towards growing the industry.

    Recommendations

    – To sustain the growth of the two (2) industries, there is a pressing need for infrastructural development and investment in key areas such as tourism, music production facilities and exhibitions as well as affordable concert venues. This will in turn attract private investment both domestic and foreign and further bolster the economy.

    – Over the years our star artists continue to generate millions of dollars in revenue from multiple concerts and tours held yearly in their host countries. While Nigerian music stars continue to contribute significantly on a global scale, there is a call for a more balanced approach that also uplifts local industries. It is my position that with the right environment, infrastructure and policies in place, exhibitions and concerts can be held in Nigeria and more foreigners will be more inclined to visit Nigeria to attend these concerts and can serve as a platform to showcase our music on a global stage.

    It will also attract tourists from all over Africa and other parts of the world who are interested in having firsthand experience of Nigeria’s rich cultural heritage beyond the event itself. Concerts can help boost our local businesses and stimulate our local businesses ranging from hotels, food, transportation services, etc. The impact of hosting international concerts extends to employment opportunities in sectors such as event management, hospitality, security etc, and it will have a significant impact in generating revenue and contribute to Nigeria’s foreign exchange reserves. It is important to note that tourism in Nigeria is basically centered on events as earlier pointed out, but in essence, it is totally beyond that. Government can through private organizations establish a reputable, institutionalized Awards platforms to recognize and promote not only afro beats music but as well as highlife music, jazz music, fuji etc.

    The ONE-STOP Investment Centre (OSIC): The One-Stop Investment Centre (OSIC) brings together relevant government agencies to one location to provide fast-tracked services to investors. The centre is coordinated by the NIPC, and its objectives is to simplify business entry processes by removing administrative and regulatory bottlenecks pertaining to doing business in Nigeria. The centre presently has twenty seven (27) participating agencies. If we must diversify our economy and harness the opportunity there is in tourism, Nigeria must as a matter of urgency, do more to encourage such initiatives. Whilst the government must be commended in this regard, there is also the need for government to add some flesh to the initiative by allowing the concept of shelf company. With the OSIC working, the need for shelfing companies for investors cannot be over emphasized. 

    The current visa policy needs to be reviewed. Like Rwanda, Nigeria should implement a free visa policy for tourists across major countries of the world. The potential of Africa has been pitched as “a unified tourism destination” being a continent that still relies on 60% of its tourists from outside Africa, according to the data from the United Nations Economic Commission for Africa. 

    Our government must encourage local production by making funds available to manufacturers to promote made-in-Nigeria goods. This can be done by licensing private business individuals to display locally made-in-Nigeria products in strategic centres to be in the airports i.e. something akin to the OSIC for foreigners who come into the country to have easy access to made-in-Nigeria goods at a cheaper price as part of the first major incentives to the visitors-this must be be given priority. This tax free made in Nigeria goods may be accessed through licensed shops both at the airports and within the cities, with tax rebate at the point of exit from Nigeria. 

    Finally, the government should formulate policies to remove all bottlenecks in the exportation of made-in-Nigeria products by making the exercise seamless. This will further strengthen the Naira and give room for foreign trade and investment expansion which will benefit the country. 

    Somadina Eugene Okorie Esq. is a legal practitioner and founder of Senocean Law Practice.

  • A fugitive economic offender

    A fugitive economic offender

    His escape is at once shocking, annoying and inexplicable. How did it happen? This was the question that first crossed my mind. My early responses to the sad development were understandably bewildering; I am still bewildered. I do not understand why any Nigerian will help a crook and a foreigner, to boot, to escape justice. Why will any Nigerian do that?

    I know your answer: money. But must we reduce everything to money, especially at a time like this when things are topsy-turvy and all hands should be on deck to return the country to the right path. It is a shame, a big shame, for any Nigerian to have aided the escape of the detained Binance chief, Nadeem Anjarwalla, from house arrest last Friday. He was said to have been kept in a safe house. We now know how ‘safe’ the well-furnished safe guest house is.

    Anjarwalla, a Kenyan-British, whose name sounds Indian fled from the mosque he was said to have been taken to for prayers after the breaking of his fast that day. This is the month of Ramadan and it is obligatory for every Muslim faithful to fast during the month. But nowhere is it written, whether in the Quran or in the Book of Hadiths (the sayings of Prophet Muhammed, PBOH), that a detained person observing the fast must be taking to the mosque to join the congregational prayer. He prays in his detention room as detainees are known to do, no matter their status.

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    As important as congregational prayers are in Islam, allowance is made for individuals to pray alone under certain circumstances, and detention must be one of them. There was no need to take Anjarwalla out for congregational prayers on the day of his escape. I daresay he was granted that privilege as part of a premeditated plan to aid his escape. But why?

    Are his helpers saying that they are happy with what he and his firm, Binance, a global cryptocurrency trading outfit, are doing to contribute to the volatility of the foreign exchange (forex) market? Binance is not into genuine business; it is more into money laundering than bitcoins trading. Its trading activities are a window-dressing, a cover-up for its illegal dealings in helping crooks to siphon money out of their countries.

    If Binance was into licit business, it would not have run into trouble in many countries. Anjarwalla’s well coordinated and executed escape plan has shown that Binance is a fraud. It is not a firm with the interest of any nation at heart. Binance’s main interest is in wrecking nations, using the unscrupulous elements of those countries to achieve its cloaked criminal tendencies.

     I am sure that many of Binance’s powerful customers were uncomfortable with the detention of Anjarwalla and his colleague, Tigran Gambaryan. These powerful Nigerians, who are feasting on the forex market, would prefer that the value of naira continues to fall in exchange for the dollar. They will do anything to get him out of the country to ensure that they are not unmasked.

    Remember that a court ordered Binance to furnish the government with the details of its customers – their names, addresses and other account indicators? Binance has refused to comply with the order till this day. What is Binance afraid of, if it is not into illicit business? Its continued disobedience of the court’s order shows that it has something to hide. Its operations are shrouded in secrecy, and this is something not allowed in the financial services sector.

    How did Binance get its licence in the first place? Binance may have found its way into Nigeria as it did in many other countries because there are always criminals both highly- and lowly-placed ready to help such firms because of the mutually beneficial enormous filthy lucre from the venture. These criminals will readily tell you: nothing ventured, nothing gained to justify what they are doing. What kind of venture or gain is there in an illicit business?

    Anjarwalla may have beaten the dragnet around him to escape, but he can only run, he cannot hide. Sooner than later, he will be rearrested and brought back to Nigeria to answer for his crime. Now that he has turned himself to an economic fugitive from the law, he should know that no country is safe for him. He will be worsening his case if he runs to India which has a stiff law against this kind of crime.

    As he carries the tag of a fugitive economic offender, as India labels such crooks, around his neck, the government should look inwards to determine how this shame befell us. His keepers cannot be absolved in this matter. They know how he escaped and they should be made to tell the nation those, no matter how powerful these people are, who asked them to do it.

    The National Security Adviser (NSA), Mallam Nuhu Ribadu, must sit up too. Security matters are no child’s play. He should know the operatives to entrust with such sensitive assignments in future. That Anjarwalla escaped under his watch as NSA is not good at all.

    It should be a cause of concern to him that there are many within the system who are ready to buck it and damn the consequence as long as they achieve their aim of undermining the government. Something like this should not happen again. Never.

  • Way out of the economic turbulence

    Way out of the economic turbulence

    • By Elvis Eromosele

    Sir: Nigeria is a complex country. It is facing significant challenges across nearly every sector. Today, the confluence of rising insecurity, galloping inflation, and diminishing productivity has plunged the nation into an economic quagmire. As prices soar and manufacturers shutter their operations, the imperative for decisive action to foster economic recovery and stability has never been more urgent.

    The urgency is palpable. Government business as usual would not cut. Experts concede that Nigeria’s economy is facing a tough combination of problems, all making each other worse. Insecurity, fuelled by insurgency, banditry, and communal conflicts, has, sadly, claimed and continues to claim countless lives. It equally scares away investors, disrupts the flow of goods and upsets supply chains, making it harder for businesses to operate. This instability coupled with galloping inflation, currently exceeding double digits, has rendered necessities unaffordable for many Nigerians, worsening poverty and fuelling social tensions.

    In addition, factories are shutting down, which, those who should know insists, is a sign of deeper issues in the economy. The result is that the country is producing less, which can further reduce growth and make it harder to fight poverty. These problems are all connected and need to be addressed urgently to improve Nigeria’s economic situation.

    Amidst these daunting challenges, a forward-focused approach offers a strategic framework for the government to navigate the complexities of economic recovery. Rather than being mired in the quagmire of past failures, forward focus entails proactive planning, innovation, and collaboration to forge a path towards sustainable growth. According to Forbes, “Forward thinking is looking at something everyone around you labels a problem, and pondering how it might become an opportunity.” Now, forward focus is not merely a theoretical concept but a practical imperative for governments seeking to navigate complex economic challenges and foster sustainable development.

    At the heart of Nigeria’s economic resurgence lies the imperative of restoring security and stability. To move forward, the government must prioritize comprehensive security reforms, bolstering law enforcement capabilities, and fostering collaboration with regional and international partners to combat terrorism, insurgency and criminality. Investment in intelligence gathering, community policing initiatives, and socio-economic development programs in conflict-prone regions can address the root causes of insecurity (poverty) and lay the foundation for economic revitalization. The government must heed the calls for state police. By involving people who live in troubled areas, the government can create solutions that are more likely to succeed.

    To address the galloping inflation requires a comprehensive approach encompassing monetary policy, fiscal discipline, and targeted interventions. The Central Bank of Nigeria (CBN) must implement prudent monetary policies to rein in inflationary pressures while fostering a conducive environment for investment and economic activity. Simultaneously, the government must exercise fiscal discipline, rationalise public expenditure, and enhance revenue generation through progressive taxation and anti-corruption measures.

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    After many false starts, President Bola Ahmed Tinubu appears to have gotten the memo that the current high cost of government is not sustainable. The recent executive order, which instructs Ministries, Departments, and Agencies (MDAs) to reduce the size of official delegations for both foreign and domestic trips by up to 60 per cent, along with the Federal Executive Council’s approval to implement Steve Oronsaye’s report on merging and scrapping MDAs are instructional.

    Moreover, to reverse the tide of diminishing productivity and revive the manufacturing sector, the government must adopt a holistic approach encompassing regulatory reforms, infrastructure development, and investment incentives. Streamlining bureaucratic processes, improving access to credit, and providing technical assistance to small and medium enterprises can catalyse entrepreneurial activity and spur industrial growth. Moreover, strategic investments in critical infrastructure such as power, transportation, and telecommunications are imperative to enhance productivity and competitiveness on a global scale. The answer is definitively not in the number of foreign trips. The government must put its house in order to attract much-needed foreign direct investments.

    Central to forward focus is the cultivation of a long-term vision for economic development and prosperity. So, governments must move beyond short-term fixes and political expediency, articulating clear goals, priorities, and strategies for sustainable development. It must build resilience into the economic systems, institutions, and policies, ensuring they can withstand shocks, adapt to changing circumstances, and bounce back stronger.

    •Elvis Eromosele,

    Lagos.

  • A doctor’s insight into the economic crisis

    A doctor’s insight into the economic crisis

    •  By Halimah Sanda

    As a doctor and a public health expert who interacts regularly with the common man and witnesses the struggles of ordinary Nigerians first-hand—rising costs, and fading hopes, I am compelled to reflect on the current economic crisis gripping our nation. While I am not an economic expert, the realities of hardship and despair are palpable in the lives of those I encounter. With prices of basic commodities and medicines skyrocketing and incomes remaining stagnant and in some cases even declining, the average Nigerian is struggling to make ends meet.

    Nigeria’s wounds run deep, its fractures are too many and too severe to heal overnight. Decades of mismanagement and flawed policies preceded this crisis. Our foreign reserves bled dry to artificially prop up the naira, while the powers that were, fiddled like Nero as Rome burned. Those engaged in that knew very well that it was unsustainable in the long run. Now the chickens have come home to roost, and we are dealing with the fallout: a rapidly weakening currency, crippling shortages, and spiralling inflation.

    President Bola Tinubu, like any leader, faces immense challenges and constraints in steering the nation towards prosperity. While expectations may be high, it is essential to temper them with a dose of reality. No president, no matter how well-intentioned, is a magician capable of conjuring solutions out of thin air. Of course, President Tinubu cannot turn around decades of mismanagement in just nine months.

     It is tempting to lay the blame at the feet of President Tinubu. However, blaming him after barely nine months in office is unfair and unrealistic, for the reality is far more complex. So, while it’s understandable for Nigerians to vent their frustrations over the current economic crunch, it makes little sense to put all the blame at the feet of the current administration. Nigeria did not get into this mess overnight, and it certainly cannot get out of it overnight either. As Nigerians, we must recognize that the road to recovery will be long and arduous. It requires collective effort, sacrifice, and a commitment to addressing the root causes of our economic woes. Blaming individuals or playing the blame game only serves to distract from the systemic issues that require systemic solutions.

    Comparing Nigeria’s economic woes to the healing process of an aliment provides a poignant analogy. Much like the process of recovering from an illness, the journey to economic stability in Nigeria mirrors a gradual healing. In the same way a patient must patiently adhere to a full course of treatment, the nation requires a sustained commitment to well-thought-out policies and systemic reforms. Just as an illness may leave lingering discomfort even after apparent recovery, Nigeria’s economic revival might be accompanied by residual challenges. President Tinubu, in his nine months in office, serves as the caregiver administering the initial treatment, but the deep-seated issues demand a collective effort that extends beyond any single administration. Nigeria has been mismanaged for decades, and no leader, regardless of their intentions or capabilities, can single-handedly reverse the tide of years of neglect and poor governance. The healing process is intricate, necessitating time, care, and a strategic approach to mend the fractures inflicted by years of mismanagement and flawed policies.

    As a medical practitioner, I often explain to my patients – healing takes time. There are rarely any quick fixes or magic bullets. One has to go through the full course of treatment before seeing results. The same principles apply to national economies too. So, Nigeria’s economy requires time and correct policies to recover. There are no quick fixes or magic bullets here. Patience is key, for, like the recovery from an ailment, the full realization of Nigeria’s economic potential may take time, with persistent efforts required to address any residual discomfort in the form of ongoing challenges.

    Of course, tell that to the average Nigerian battered daily by this economic crunch. Our people demand immediate salvation without comprehending why change hasn’t happened “like that.” They have forgotten, or some of us were too young to know, that prophets of old warned us repeatedly about these very times, Economic experts and analysts have sounded alarm bells before things went too far, much like how the holy books foretell Jesus’ second coming. And yet, like startled sheep, we feign surprise when the prophesied events transpire. Sadly, there were too few, if any who heeded the warnings and took corrective action in time. Instead, we were all too busy making money, chasing power, processing dual nationalisms and positioning for the next election cycle. Essential reforms were postponed, critical institutions were left to decay, and corruption was allowed to flourish. And now here we stand on the precipice.

    At the same time, I cannot comprehend why some among us seem to rejoice over or make political capital of Nigeria’s economic woes. It shows a distinct lack of patriotism to celebrate your country’s misfortunes. We were all warned that decades of misrule would eventually catch up with us. Now it has unfortunately come to pass, despite the hopes that maybe this time things will be better.

    Equally worrying is the behaviour of too many of my generation of younger Nigerians. We agitate loudly from the side-lines but lift no finger to fix things. We point fingers and hurl invectives on social media but proffer no solutions. We recline into our comfort zones, hoping problems will disappear instead of defying limits to make change happen.  But the leaders of today will not be around forever. One day, the mantle will inevitably fall upon our generation. Make no mistake: that time is fast approaching, whether we like it or not. So rather than snipe from the side-lines, we better roll up our sleeves and help the current leaders address Nigeria’s mammoth challenges. Our children and grandchildren will not judge us by how much we critiqued but by how much we positively contributed when Nigeria needed us most.

    I ask: What have you done to uplift this nation recently? What sacrifices do you make for the collective good? For how long will you criticize leaders instead of equipping yourself for future leadership? Nigeria’s second coming beckons her young, but are we ready to heed the call? My fellow young Nigerians, start preparing yourselves for leadership now! Learn from the positives and negatives of the past and current administrations. Immerse yourselves and understand the intricacies of governance, economic policies, and institution building. Because, ready or not, our time is coming sooner than we think.

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    One day, leadership must change hands. Young Nigerians must specially prepare for this epoch moment lest we repeat mistakes of the past. Learn everything you can about governance NOW! Those of us already privileged to be in the corridors of power must use this opportunity with wisdom, and this apprenticeship to carefully understudy leadership, optimizing knowledge for future use. The health of Africa’s greatest hope depends sorely on us getting this transition right. Instead of pointing fingers, let us channel our energy towards constructive dialogue, collaboration, and holding our leaders accountable for their actions. It is only through unity and a shared vision for a better Nigeria that we can overcome the challenges that lie ahead.

     Real change requires a collective effort and a willingness to confront the hard truths about our past and chart a new course towards a brighter future. No one leader or generation can resolve challenges of this magnitude alone. The healing of Africa’s giant is not a nine-month or nine-year project. It is the work of generations. But the foundation stones have to be laid here and now through hard work, cooperation, patriotism, and visionary leadership. Only then can we nurse this fractured economy back to full, thriving health and achieve our full potential as a proud African nation. So, let us not dwell on blame but instead focus on the work that lies ahead to build a more prosperous and equitable Nigeria for generations to come.

    •Dr. Halimah writes from Kano and can be reached via halimahwrites@romzaibfoundation.org