The Nation Newspaper

Tag: Ibrahim Apekhade Yusuf

How autonomous is CBN?

Startling revelations of alleged misappropriation of public funds by the immediate past of President Goodluck Jonathan with the active connivance of the board and management of the Central Bank of Nigeria (CBN) has raised pertinent questions over the autonomy or otherwise of the apex bank, reports Ibrahim Apekhade Yusuf

Does the federal government has the right to instruct the Central Bank of Nigeria CBN to sign off money from the public vaults without recourse to due process? Who has the mandate to approve the release of funds from the CBN? Does the CBN act in the overriding public interest or is readily influenced by the selfish interest and caprices of a select few? What is the obligor limit of the CBN as far as expenditure is concerned?

These and many more are questions begging for answers as the issue of propriety or otherwise of the CBN spending spree , especially under former President Goodluck Jonathan is being hotly debated in the court of public opinion.

Crux of the matter

The current administration has left no one in doubt of its anti-corruption posture, which is why as the new sheriff in town, it has been scrutinising all the alleged sleaze in high places, literally with a fine tooth comb in its quest to recover stolen public funds, chief among which is the alleged $2billion phantom arms deal, in which the CBN has been named as a major conduit pipe for perpetrating the grand heist.

The Economic and Financial Crimes Commission (EFCC), The Nation gathered made a breakthrough in tracking how some of the $2billion arms votes and extra-budgetary funds were withdrawn from the CBN based on orders from above.

According to the anti-graft agency, the alleged massive withdrawal from the CBN was possible because the apex bank was hamstrung though it was careful in obtaining a written directive from ex-President Goodluck Jonathan before releasing part of the funds in question.

Investigation by The Nation further revealed that the EFCC also discovered that the CBN may have been compelled to release funds for security matters.

A highly placed source at the agency confided in The Nation that “Investigation has shown some requests for funds or intervention funds from the CBN for security reasons. We are tracking all these requests, approvals and remittances. We are already retrieving some relevant documents from the apex bank in order to ascertain what such funds were actually meant for.

“One of the key things we discovered was that the CBN management was, however, careful because it made sure it got presidential approval of such requests. We will confront some of the suspects with these documents we have retrieved. They have the opportunity to give the details of how they spent such funds and the arms procured.”

The workings of CBN

The CBN was established by the 1958 Act of Parliament, as amended in 1991, 1993, 1997, 1998, 1999 and 2007.

The apex bank was envisioned to be one of the most efficient and effective of the world’s central banks in promoting and sustaining economic development and whose overriding mission is to be proactive in providing a stable framework for the economic development of Nigeria through the effective, efficient and transparent implementation of monetary and exchange rate policy and management of the financial sector, has performed its functions not without some hiccups, especially in the recent past.

Antecedence of past CBN governors

Roy Pentelow Fenton, the first CBN helmsman served from July 1958, retired in 1963 and subsequently passed the baton to the first indigenous CBN governor, Alhaji Aliyu Mai-Bornu, who served from 1963-1967 before the civil war.

The Nation however, gathered that the CBN, which has suffered a chequered existence thus far, faced its worst time under the military as the government interfered with process and procedures.

A case which better illustrates this high level of interference is Dr. Paul Ogwuma, who served as CBN under the Abacha military junta, specifically from 1993-1999. He was said to have been a lackey of the late military ruler, who reportedly made him sign off tones of wads in foreign and local currencies all throughout the lifetime of the administration.

Thankfully, with the return to civil rule in 1999, the incidence of interference was no longer apparent as it was the case during the military reign.

Sanusi’s experience

The CBN under Sanusi Lamido Sanusi, who was placed on suspension by President Goodluck Jonathan in January 2014, after reportedly squealing that billions of petrodollars was missing from the coffers, had spearheaded bank reforms and acknowledged making powerful enemies among vested interests in a country where corruption is endemic.

Sanusi said he received death threats and frequent warnings that he would be fired after he took on bank CEOs who had stolen billions of deposits and who he said had bought political protection or were themselves politicians.

He called his move, just after taking office in 2009, “a decision that would pitch us against powerful economic and political forces.”

According to Sanusi, in the course of his duties as the CBN governor, he discovered certain discrepancies in respect of amounts repatriated to the federation account from the proceeds of crude oil sales between the period of January 2012 and July 2013 and that he expressed concern in respect of the said discrepancies and had cause to inform the National Assembly of the said discrepancies because they affect the revenue of the federation and the national economy.

The erstwhile governor reported that $50 billion worth of oil sold by the NNPC had not been paid to the government.

Sanusi said corrupt vested interests keep what should be a wealthy country impoverished and are at the heart of 90 percent of the problems confronting the country, from a north eastern Islamic uprising and deadly ethnic strife to a dearth of jobs, education and health care.

But after the Senate Committee on Finance ordered an independent forensic audit into the missing money, it was discovered that the missing amount was $20 billion.

Apparently unhappy over Sanusi’s impudence, Jonathan subsequently named a deputy governor to act in Sanusi’s place but also immediately sent to the Senate the name of another banker he proposed as the new custodian of the nation’s Federal Reserve, making clear that he has effectively fired Sanusi.

Best practice

•Aremu

Prof. Jonathan Aremu, renowned economist and professor of International Economic Relations at the Covenant University, who began his working career in the Research Department of the Central Bank of Nigeria (CBN) in 1980 as an Assistant Economist, and rose through the ranks to become Acting Assistant Director of Research before he voluntarily retired in December 1992, while going down memory lane recalls with nostalgia his days at CBN.

While reacting to claims that the CBN may have been put pressure under the former administration to release money without following the due process, he said it is absolutely wrong.

“You don’t do that. The CBN has the responsibility to advice on the direction of the economy through the management of the monetary policy. So to that extent, there is need for the CBN to have autonomy. You know this was exactly what the immediate past CBN governor was saying when he blew the whistle on the unremitted income of the NNPC but he had to be sacked. This sort of thing should not be allowed in the system.”

Aremu who acknowledged that the CBN has evolved overtime, recalled that during his days at the CBN those at the helms of affairs were apolitical unlike what obtains now.

“Let me tell you one thing, in my year in CBN when we had the late Ola Vincent in the saddle as the CBN governor, things moved in very good direction. You hardly hear of the man actually talking politics. No. he (Vincent) comes out when it is necessary. That’s the issue. You have to come out when it is necessary. But of recent times, you just see the CBN governors, particularly in the last two administrations talking almost everyday as if they are also members of the political class. That is not good at all. It will injure the kind of sovereignty they give the system because having talked to one party now, what do you want to say to the other parties?”

On best practice, he said: “Our banking policy system is a direct copy from the Bank of England and you see the chancellor of the Bank of England, has certain specific roles which limits him to certain things and gives him certain autonomy in quite a lot of things. So we need to go back to that. Though we cannot actually copy the model hook, line and sinker because we have different developmental objectives and we’re at different economic development levels. We can actually mix from the level of economic aspiration with our own. But that’s not to jeopardise the orthodox monetary policy of the system.”

December 13, 2015
Mini generators: Going, going…

The proposed ban on the importation of mini-generators, otherwise referred to as ‘I better pass my neighbour’ in local parlance, has generated a lot of furore with stakeholders arguing that the policy will be a great disincentive to small and medium scale enterprises operating in the country. Ibrahim Apekhade Yusuf examines the issues

The prohibition on importation of mini-generators otherwise known as ‘I better pass my neighbour’ is generating a lot of ripples everywhere with stakeholders, especially operators of small and medium scale enterprises, are crying blue murder.

Comrade Barnabas Igwe, a member of the National Association of Small And Medium Enterprises (NASME) said the proposed ban is anti-poor, especially the small business entrepreneurs.

Raising some posers, he said: “If truly the ban is aimed at tackling air pollution, what about the banks, factories, school, hospitals etc. that make use of the massive generating sets that emit as much carbon, even way more, than the “I pass my neighbour”? Why does the embargo fail to cut across these other establishments who own more stakes in polluting the air?”

“Nigeria, unfortunately, is a generator economy with over 60 million generator users made of SMEs who are mostly dependent on the mini-generators because it is known to conserve fuel thereby reducing cost of running businesses. So, how do you encourage intending small-scale entrepreneurs and sustain the already existing businesses when you frown at their only source of reliable uninterrupted power?”

“There are a total of 17 million registered SME’s business components in Nigeria which ideally, in a sane society, drive economic growth, with the micro-businesses that make use of the bigger generators which are mostly diesel-powered constituting 99.87% i.e. 17,261,753. The small and medium-scale enterprises, which constitute the major users of the infamous mini generators, account for 0.13% i.e. 22918 of 17 million, a negligible fraction but unfortunately susceptible to bullying associated to lopsided government policies. This makes you want to question why the ban has targeted this infinitesimal few and spared the glaring majority?”

Writing under the caption: ‘Mini Generators Ban: War Against Air Pollution Or Working Class?’, Prince Opara, a popular blogger said, with the trade prohibition coming barely a week after the inauguration of the minister of power, housing and works, Babatunde Raji Fashola, he is convinced the policy must have been influenced by the latter.

“How do you ban these generators and not ban cigarettes which pose more harm and further pollute the atmosphere? Why does the ban spare cars, trucks, motorcycles and tricycles which contribute more than 40% of the carbon compounds in the atmosphere?” he queried.

“I strongly advocate for the phasing out of generators as the fumes emitted from these technologies accounts for some 10,000 deaths in 2008-2014. African Clean Energy Summit reports earlier this year said generator-induced deaths accounts for 95,000 deaths annually in Nigeria.

Crux of the matter

It would be recalled that Customs spokesperson, Madugu Jubrin, in a chat with journalists had a few weeks ago, hinted that the ban on the item was informed by the need to stem pollution.

Jubrin, who controls the Customs Federal Operations Unit (Zone A) in Lagos, said: “The smaller generators have been banned by the federal government because they cause air pollution and destruction of our lungs and breathing system. That is why they have banned it. But people are still interested in smuggling them in. That is why we intercepted them. If you go to the market, you still see them because people have imported them before the ban. So, it is the leftover they had before the ban that they are selling because the law did not backdate the ban and it is not an absolute prohibition. It is prohibition by trade, which means you cannot bring it in large quantity and sell in the country anymore.”

But the planned ban may well be a fait accompli if feelers out there are anything go by.

Due to the inability of successive governments to provide adequate and reliable public power supply, low income earners, such as traders and artisans, are forced to depend on these cheap generators in markets, shops and at home in the various congested slums and low cost urban housing areas.

Chain reactions

Reacting to the ban, many Nigerians accused the government of insensitivity.

In a chat with The Nation, a cross-section of artisans decried the ban, saying the government is clueless on how to improve the living standards of ordinary Nigerians.

They insisted the decision would render many jobless.

A few even suggested that the embargo might actually lend credence to conspiracy theories about generator-importing cabals being behind the failure of the power sector, despite trillions of naira spent since 1999 to boost performance.

Many Nigerians have protested the ban, claiming it is selective and targets low-income earners and the impoverished. They argue that several SMEs fall into this vulnerable category and would be greatly distressed by the ban.

“If truly the ban is aimed at tackling air pollution, what about banks, factories, school, hospitals etc, which make use of huge generating sets that emit even more carbon than the small gens? Why does the restriction not cut across these other generators, which do even more damage to the air?” queried Greg Adams, who runs a startup in Mushin axis of Lagos.

In the view of Fredrick Omoshehin, who ekes a living by using the small generator to charge phone batteries at Ojuelegba, he said: “If the government wants to ban the use of generators in the country, it should prohibit all sizes, especially, the big ones, so that politicians who use them would feel the pinch as well.”

Echoing similar sentiments, Omolara Adewoyin, who runs a hairdressing saloon in Festac town, Lagos, said the decision was ill conceived and urged the government to have a rethink.

“Many of the people who use these generators are youths. When you deprive them of their livelihood, what do you expect? They will certainly embrace anti-social vices,” said Ms Adewoyin.

Generation and distribution of public electricity is still abysmally low. Many homes and SME’s are dependent on the small generators, which are known to conserve fuel, thereby reducing cost of running businesses. How intending small-scale entrepreneurs are going to cope, as well as already existing businesses and homes, is the question on many people’s minds.

The main criticism of this ban is that government banned poor folks’ main power source without providing a ready alternative. They argue that government should have ensured steady power supply or at least a marked improvement in power supply before placing the ban. It is true that millions of low income household use this type of generators, which are also the live wire of small businesses such as restaurants, barbing salons, small offices, corner shops, those who charge cell phones for a fee, as well as student hostels and millions of families. Practically every small scale business uses this type of generator in the absence of steady public power supply. The situation is the same in rural areas where people rely on these small generators for farming, domestic and small business activity.

Analysts have argued that laudable as the ban seems, it will make the smuggling of these generators become even more lucrative and fuel more corruption among Customs officials, especially at the borders.

The Manufacturers Association of Nigeria (MAN) and other business owners say that this ban will increase unemployment in the country. They say the local manufacture of quality small generators is unlikely as our economy is not conducive for investment in such a large scale industry.

They say the local manufacture of quality small generators is unlikely as our economy is not conducive for investment in such a large scale industry.

In a statement, MAN said the ban on the importation of these gadgets without providing alternative means of power supply to the poor and vulnerable strata of the society is an act of insensitivity towards the needs of the downtrodden members of society.

Should the policy be implemented, they said it might be difficult for the artisans and traders to survive at all.

Raising some posers, MAN asked: “How would the ordinary people be able to survive the heat of the dry season which is upon us earlier than usual this year? This policy is bound to be seen as unkindly targeting the poor.”

Besides, the association said the policy will make the smuggling of these generators become even more lucrative and fuel more corruption among Customs officials, especially at the borders.

“We believe it is possible to solve this problem by encouraging Nigerians to form groups to own and operate bigger generators. It is also even better if government provides cleaner and renewable energy sources such as inverters and solar options in the markets and dwelling areas while greater efforts are made to find a permanent solution through the provision of adequate public power supply.”

“Before the importation of the mini generators is banned, government must first of all provide alternative options to the low-income citizenry,” MAN secretariat stressed.

Economists seem to be watching with keen interest to see how government intends to grow the economy with such a policy that will no doubt strangle small businesses which form a greater part of the business community providing employment and economic sustenance to a large number of the population. They however lament that the move makes nonsense of government’s much professed determination to create a sustaining economy, when small self-sustaining businesses that enables people create self-employment, and jobs for others are being discouraged with such a move.

A rebuttal

Authorities have stated that the law was not backdated and all generators imported before it came into effect are legal. The ban is not a prohibition and the remaining stocks are free to be sold off. Customs officials affirm that the ban is in effect only as “prohibition by trade” and only large quantities of imported generators will be seized.

The main criticism of this ban is that government banned poor folks’ main power source without providing a ready alternative. They argue that government should have ensured steady power supply or at least a marked improvement in power supply before placing the ban. It is true that millions of low income household use this type of generators, which are also the live wire of small businesses such as restaurants, barbing salons, small offices, corner shops, those who charge cell phones for a fee, as well as student hostels and millions of families. Practically every small scale business uses this type of generator in the absence of steady public power supply. The situation is the same in rural areas where people rely on these small generators for farming, domestic and small business activity.

While the ban does not affect importation of larger generators, low income people cannot afford those ones. Small businesses in cities and towns can however get round this problem by combining together to install larger generators for their collective use. This will be cheaper and healthier for everyone as it will greatly reduce air and noise pollution that obtains in our markets today where everyone installs his or her own small generators. All it needs is cooperation among many operators.

The ban is not a prohibition and the remaining stocks are free to be sold off, authorities have said. Customs officials affirm that the ban is in effect only as “prohibition by trade” and only large quantities of imported generators will be seized, not piece meal imports.

December 6, 2015
‘Edo remains an investment haven’

Mr. Joe Okojie, Edo State Commissioner for Agriculture, who assumed office some weeks back, unveiled his plans for the ministry while playing host to the 11th Supervision Mission of the Rural Finance Institution Building (RUFIN) programme in Benin, Edo State capital, reports Ibrahim Apekhade Yusuf

Rural farmers in Edo State got over N1.2billion as loan disbursement from the Rural Finance Institution Building (RUFIN) programme. How does that make you feel?

When you say N1.2billion, it will appear as if it was disbursed at once. But the amount from the record I have has been disbursed since 2010 at the inception of the programme on a revolving basis. So, it is not as if it was just disbursed at once. But be that as it may, I think I feel very encouraged that there are facilities out there that our people at the grassroots level, who ordinarily won’t have access to credit, can now have access to it so that they can use in their various small scale farms in order to increase their productivity. So for me, that’s a step in the right direction.

What strategies do you have in place to ensure that the programme is sustained given the fact that the programme is wrapping up next year?

First of all, I must commend the RUFIN team for doing their part. It’s a programme I that I think is worthy of note and going forward, we as a government, we have a responsibility to cater for our people. What we have to do as a government is to take ownership of the programme and continue to make sure that our people, especially those at the grassroots level continue to have access to resources to improve in their farm and in their productivity in general.

RUFIN is a programme through which help and relief can be given to people at the grassroots. That is why when I took over office, I took interest in the project and I made itý my project. I’m doing my best so that, we as a government will fulfill our own end of the project. I promise you that we will do the needful and will do more to take ownership of the programme when RUFIN is gone. My hope is that, going forward, we will have better synergy so that we are able to deliver on our promises.

Farmers in Edo State like their counterparts across the federation look up to government for one assistance or the other. As the Commissioner for Agric, what’s your agenda for farmers in your state?

Well, for me, the farmers are my primary constituency in the state and I will do whatever I can consciously do to deliver on my deliverables. And my deliverable is to make sure that we help them to pursue their goals in whatever we can.

The state government is yet to make its commitment as far as the counterpart funding of the RUFIN programme is concerned. Can you bring us up to speed on what is being done in that regard?

We’re aware of the challenges and we’re willing to do whatever we can to address the challenges. Edo state is an agrarian state with over 65 per cent of the residents here involved in one form of agriculture or the other. So agriculture is very key and we’re willing to do whatever we can to encourage people in agriculture, especially at the grassroots. That’s why we take particular interest and liking for RUFIN programme given the fact that the programme is directed at people at the grassroots. When I first came back into the country and saw the way things were going, a situation where you have people at the grassroots not been catered for, I told myself that if we continue on this path, a time will come when we will no longer be able to protect the very few rich because we have not made provisions for the very many poor. So, my quest was to make sure that the gap and divide was addressed and I think coming on board, I found that through the RUFIN programme we can channel help to the poor and needy in the society. So, naturally I took interest in the project and I have made it my project ever since.

One of the challenges that confront smallholder farmers is the challenge of preserving their produce. What scheme does the state has in place to assist in that regard?

Concerning the issue of preservation, just last week we looked at an array of things that can help farmers to preserve their harvest and be able to optimise it. We’re looking at the silos we have to see how we can refurbish them so that some of these farmers can take advantage of the silos to preserve whatever it is they’re going to harvest.

However, that’s just one of the measures. But we’re considering the suggestions and innovations that came up last week and we’re looking at them. My hope is that we’ll make the best use of the opportunity in the shortest possible time. So we’re still evaluating what will work in this environment.

In the past, the state partnered with foreign investors to grow the agric base. Are you still open to such collaboration?

We’re still talking to a lot of investors. As we speak l’m scheduled to have an appointment with some investors. We’re targeting new investors and we hope to give them incentives to encourage them to come and invest in the state. We’re determined to make Edo State an investment haven.

Can you be specific on the revenue projections from these new investments?

Don’t you think it would be dangerous to count your chickens before they are hatched? (Laughs).

Another challenge farmers contend with is how to add value to their produce in terms of processing, etc. What is the state government doing to help in this area?

I must admit there are infrastructural deficit. But considering the time I have, if I embark on building infrastructure now, it will be difficult to achieve that. However, our plan is that we want to be able to put the state on the path of growth by setting medium and long term goals. But in the interim, we’re looking at short term goals, which is to help farmers reach their productivity and help them with access to the market. If you go to the rural areas, you will see that what the Comrade Governor has done is to pave roads through farm communities so that farmers will be able to take their produce to the market.

That’s the first thing. In that regard, you will agree with me that we have been able to build infrastructure across various communities to ease the transportation of produce to the market. In the short term, we have achieved one key deliverables. I’m sure our medium term would be to add value by setting up processing plants. But let me say here and now that it is not going to be done in my tenure unless you want me to lie to you and l’m not going to lie to you. If sit down here and tell l’m going to that in my tenure, l will be lying to you. It’s not just possible because even more l desire it, time will not permit me.

What l will concentrate on are things we can achieve in the short run that can increase the productivity of the farmers such as the RUFIN programme that gives direct credit access to the farmers and that’s why we’re not leaving any stone unturned in our quest to ensure the programme succeeds. Why I have decided to take ownership of it and do whatever I can to make sure that we sustain it and the state takes over so that our farmers can continue to have access to improve on their productivity.

November 22, 2015
‘Nigeria needs to take urgent steps to avoid being a depressed economy’

Mazi Okechukwu Unegbu is Chairman/Chief Executive, Maxifund Investment Plc and former President of the Chartered Institute of Bankers of Nigeria (CIBN). In this interview with Ibrahim Apekhade Yusuf he speaks on a wide range of economic issues. Excerpts:

Investors’ Protection Fund was meant to assist investors in the capital market to get over their losses. But there are claims that many investors, especially retail investors have been shortchanged by the managers of the fund. How would you react to this?

I think it’s a wrong conception. The Investors’ Protection Fund as the name implies means that it will protect investors who have lost soothing in the market through the activities of some stockbrokers in the market.

Of course, you know that the Chairman of that body, Gamaliel Onosode, just died, God bless his soul. It does mean that the stockbrokers are doing their job well by not cheating investors. If you keep paying that money out every day, what you’re saying is that this stock broking community are all doing things wrong. But because nobody is accessing it , it is not a fund that should be dashed out. It is a fund that should protect you and me should we fall victim of lapses by stockbroking firm or any other type of devastation of investment fund.

But because of the zero-tolerance both by the Security and Exchange Commission and the Nigeria Stock Exchange and other stakeholders, self-regulating organisations such as the Chartered Institute of Stockbrokers and the Association of Stockbroking Houses, coming together and now saying we cannot tolerate a situation where people are being robbed of their funds, that’s why you cannot just dash it out.

But for the very few that has happen, all those who were involved had been compensated by the Fund. That Fund is earning income so it is for the interest of those who are there and should any stockbroking firm I believe is exiting the market, those who are exiting now may even apply to access that Fund because if they didn’t have any infraction they committed against any investors. So, it’s not a Fund that is a Father Christmas kind of thing. Certainly not.

But the complaint by retail investors is that they’re being shortchanged and the NSE hasn’t really made public names of those who have benefitted from the Fund.

I know quite a few that have benefitted but I can’t remember their names now, particularly for those stockbroking firms that have been out of the market. In fact, if you know any of them that say they are involved and you bring them to us, I personally will follow up and ensure that they are compensated at the end.

Investor apathy in the capital market has remained. Do you think the situation can change anytime soon?

I addressed the same issue you raised now few days ago at a live programme on TV. I did say that yes in the second quarter of 2015, the Gross Domestic Product was 2.57%, whereas at the first quarter, it was 4.2%, which means there is a decline. Remember, it was 7% before and later 6.5% and now 2.57%, which means we’re in a recession. But the CBNN governor said it may be in 2016. He was just been modest as far as I’m concerned. In actual fact, we’re in a recession. Economic recession means economic suffering. Nigeria currently is facing economic doldrums. What we have to do is to avoid a situation where Nigeria becomes a very highly depressed economy.

Thankfully, the government itself is determined to fight corruption, which is good. Fighting insecurity, also good, but it is yet to come out with an economic blueprint and it is difficult for you and me or for any economist to forecast the issue of recession. It is like saying that somebody is going to die in the next minute. It is not possible. But you also know that it is also even a problem when the IMF is calling for Nigeria to even devalue its currency. That is even a crazy idea altogether.

For me, I don’t like them (IMF) because as far as I’m concerned, they do not the right thing to help an economy. How can you call for a devaluation in a country that is facing depression, whose currency has already being devalued for about 8 %, a country that has only one product that is internationally traded.

The idea of devaluation is for you to have more export, so import would be very expensive. But the question is what export do we have apart from oil? So it is an issue.

You do not have to get into that mess up the place. That is what is happening. The Emir of Kano, Lamido Sanusi called for devaluation of the naira. And I don’t agree with him. I don’t think we should devalue. There is no justification for that whatsoever.

We have to start now to work on how best to diversify the economy because the economy has been in a mess for the past 20 years. Curiously, nobody was looking at it because we were getting oil money and nobody talked about diversifying. So we’re going to do a lot of work and I believe we can make it so long as we have sincerity of purpose.

The issue of forex restriction has been hotly debated as one policy that has more negatives than positives. Do you share such sentiments?

I completely agree. Forex restriction for certain goods is okay. But what they should do is if you allow your currency freedom, what do you have to back it up? For some goods, ryes, we support that but for some others, particularly those that help us increase capacity utilization in the industry, for those areas you don’t restrict them so much so that you ca be able to have something to do. Last week, the lawmakers declared a state of emergency in the labour market because certain restrictions have been targeted at some companies. You don’t need to do that. All those things we can produce here, yes, you can restrict their importation but those ones we cannot produce, particularly industrial raw materials, industrial spare parts and all that, you don’t need to restrict forex to them. You must be able to allow them access to money sufficient for them to produce. But as for making it an open thing, it is not the right thing for the economy.

The policy was meant to fix the battered foreign reserves. However, some items in the lists have no business being there because they are raw materials.

I have nothing against the policy, but the CBN must be cautious not to drive manufacturers to the parallel market. I expect the regulator to be one step ahead of the stakeholders.

The CBN should always consider the unintended consequences of its actions and must set a band which the naira must not exceed.

In your opinion, what quick wins can the government achieve within the shortest possible time?

For me, one of the quickest things the government can do is to see how they can improve on employment. Even if it means getting all these young boys and girls out into the streets for some of them to be removing dirt from the gutter and putting it back and pay them the minimum wage, that’s okay. That can be done because all the money we’re wasting can be ploughed into that.

It’s so unfortunate that most of the governors are not thinking, they’re just waiting for the money from Abuja, they’re not thinking. The moment you start doing that then you know you’re going to get more taxes coming in and you’re going to get most of us all working and once we’re working, things will start going on.

So, first and foremost, get these young boys working, diversify the economy by pushing all of them into agriculture. It can be done. In fact, in the blueprint I designed when I wanted to run for office as the governor of Imo State, there we didn’t put anything about waiting for Abuja allocation. We had a marshal plan on how we are going to raise money in the system and we submitted it to our government that look you don’t need to start going to Abuja all the time.

There are few things you can do to get the economy back on track. Nobody is doing it, we’re all just politicking without thinking of economising, trying to make sure that the economy moves.

That is why I’m happy with Tunde Fowler is doing in Abuja. There are certain things that he has started doing that are in the right direction. The moment you and I are captured in the tax net, the economy can start moving.

Also we have no data. We have the Bank Verification Number (BVN), drivers’ license, the National ID and all that. If you have all these data all over the place, you’re creating problems. I believe that if you have registered with the National ID, and all other things get into it, you find that you’re even making money and clearly identifying people knowing that once they punch your name anywhere, every detail about you will come up. And these are what some of these young boys who studied computer science or software engineers can do for Nigeria. But unfortunately, nobody is thinking about that.

The question I have asked a few times is why do you have to quadruplicate data for one person? It doesn’t make sense to me. That makes it easy for what you cal identity theft to thrive. That is why most people are against the BVN.

The government must get the country working again. The local government areas are idle, they’re not doing nothing just because the state government decides to emasculate them. I think they should be made to work. Once the councils and villages start working, most of us would be persuaded to go back to the rural areas. But sadly, nobody is thinking about that because they’re all waiting for the money from Abuja.

November 15, 2015