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Tag: policy

  • Poultry farmers ready for Fed Govt’s Home Grown School Feeding policy

    Poultry farmers ready for Fed Govt’s Home Grown School Feeding policy

    The National President, Poultry Association of Nigeria (PAN),Dr. Ayoola Oduntan, has said of the  the association in has the capacity to meet up the various demands and challenges that might arise from the Home Grown School Feeding Programme of the Federal Government

    The natnudO Foods boss, however, added that it might take up to four years or longer for the country can reach self-sufficiency status if the needed support is not forthcoming to the sector

    Addressing reporters after a tour of the facilities at Amo Byng Nigeria and Amo Farm Sieberer Hatchery Limited  in Awe, Afijio Local Government, Oyo State, the natnudO Foods boss explained that if properly harnessed, the poultry value chain has the capacity to absorb millions of people and make them economically productive

    Oduntan said: “The local poultry sector has the capacity to produce and meet the poultry demands that will arise from the new government policy of home grown school feeding programme

    “We advocated for the inclusion of eggs and poultry foods in the meals to be given the school children and I can assure you that, if given the needed support in terms of fund and materials we will meet the demands

    “Meeting local consumption demand is achievable in two years at the rate we are growing, we only need patience and support, but if we are denied such, it might take up to another four years before we can attain that level”

    According to Oduntan, the amount of money spent by entrepreneurs in providing infrastructure and facilities to keep business running is huge and diversionary.

    He said: “We are here because as producers of natnudO chicken, we want to show Nigeria and Nigerians that with a little bit of support and patience, Nigeria can be sufficient in the production of poultry produce.

    “We are a Nigerian company and we can lead the way for other poultry farmers to produce enough that will be sufficient for Nigerians and save our people from the hazards of smuggled poultry products into the country

    “Our target as a company is to make at least ten percent of total poultry production for the Nigerian market in the next five years”

    “Our motivation has been to create jobs for the people and bring something out from nothing. We need the banks to believe in us more and support us with funds to run the sector,” the natnudO Foods boss said.

  • Buhari: our naira policy is to safeguard economy

    Buhari: our naira policy is to safeguard economy

    Govt to disclose recovered fund this week, says minister

    Advocates of devaluation were yesterday told to forget it because it will hurt the economy.

    President Muhammadu Buhari in a broadcast to mark his administration’s one year in office and the 17th anniversary of uninterrupted democracy,  spoke on a variety of issues affecting the polity in a 30-minute speech broadcast between 7a.m. and 7.30a.m.

    The Federal Government has been hailed for fighting corruption and insecurity but the accolades have been trickling in on the economy. The President  said he would continue to keep an eye on measures introduced to stabilise the economy, adding that he supported the monetary authority’s decision to ensure alignment between monetary policy and fiscal policy.

    “We resolved to keep the naira steady as, in the past, devaluation had done dreadful harm to the Nigerian economy.

    “Furthermore, I supported the monetary authority’s decision to ensure alignment between monetary policy and fiscal policy.

    “We shall keep a close look on how the recent measures affect the Naira and the economy,” Buhari said, adding:

    “But we cannot get away from the fact that a strong currency is predicated on a strong economy.

    “And a strong economy pre-supposes an industrial productive base and a steady export market.”

    But the President warned that “the measures we must take may lead to hardship.’’

    Buhari maintained that the past 12 months of his administration had been spent collaborating with all arms of government to revive institutions so that they are more efficient and fit for effective service delivery.

    “We started boldly with the Treasury Single Account (TSA), stopping the leakages in public expenditure.

    “We then identified 43,000 ghost workers through the Integrated Payroll and Personnel Information System (IPPIS).

    “That represents pay packets totalling N4.2 billion stolen every month. In addition, we will save N23 billion per annum from official travelling and sitting allowances alone.

    “Furthermore, the efficiency unit will cut costs and eliminate duplications in ministries and departments. Every little saving helps.

    “The reduction in the number of ministries and work on restructuring and rationalisation of the MDAs is well underway.

    “When this work is complete we will have a leaner, more efficient public service that is fit for the purpose of changing Nigeria for the good and for good,’’ the President said.

    He frowned at the activities of illegal miners, saying a special security team had been set up to check the menace and protest the nation’s mining assets.

    Buhari said special measures would be in place to protect miners in their work environment.

    According to him, the Ministry of Solid Mineral Resources has produced a roadmap where Nigeria would work closely with the World Bank and major international investors to ensure best practices and due diligence in the mining sector.

    President Buhari, who announced the official inauguration of his administration’s Social Protection Programme, lamented that the society had been neglecting the poor and victimising the weak.

    “For too long, ours has been a society that neglects the poor and victimises the weak.

    “A society that promotes profit and growth over development and freedom.

    “A society that fails to recognise that, to quote the distinguished economist Amartya Sen,” poverty is not just lack of money. It is not having the capability to realise one’s full potential as a human being.

    “So, today, I am happy to formally launch, by far the most ambitious social protection programme in our history.’’

    According to him, the N500 billion appropriated in the 2016 budget for social intervention programmes will be used in in five key areas.

    He said that his administration was committed to providing jobs for 500,000 Nigerians to work as teachers. Besides, 100,000 artisans will be engaged.

    He added that 5.5 million children would be provided with nutritious meals through the school feeding programme to improve learning outcomes.

    There is also the conditional cash transfer scheme, which will provide financial support for up to one million vulnerable beneficiaries, and complement the enterprise programme.

    This programme would target up to one million market women, 460,000 artisans and 200,000 agricultural workers.

    Security

    On Security, the president praised members of the Armed Forces for their efforts in checking the Boko Haram insurgency in the Northeast

    “I would like to pay a special tribute to our gallant men and women of the armed forces who are in harm’s way so that the rest of us can live and go about our business in safety.

    “Their work is almost done. The nation owes them a debt of gratitude.’’

    The immediate focus, he said, is for a gradual and safe return of internally displaced persons in safety and dignity and for the resumption of normalcy in the lives of people living in the Northeast.

    He also pointed out that the EFCC was given the freedom to fight corruption while the judiciary was alerted on what Nigerians expected of it in the fight.

    Stolen funds

    The president said a significant amount of stolen assets and funds had been recovered.

    The President said the recovered funds would be credited to the Federation Account after all necessary legal procedures.

    “We are also engaged in making recoveries of stolen assets some of which are in different jurisdictions.

    “The processes of recovery can be tedious and time consuming, but today I can confirm that thus far significant amount of assets have been recovered.

    “A considerable portion of these are at different stages of recovery. Full details of the status and categories of the assets will now be published by the Ministry of Information and updated periodically.

    “When forfeiture formalities are completed these monies will be credited to the treasury and be openly and transparently used in funding developmental projects and the public will be informed,’’ he said.

    Minister of Information and Culture Alhaji Lai Mohammed, said yesterday that “the list of the looted and recovered funds will be released before the end of the week.

    “The names of the persons will be withheld for legal reasons.”

    Niger Delta

    The President reiterated the commitment of his administration to implementing the United Nations Environment Programme report. He said the government was advancing clean-up operations in the region.

    “I believe the way forward is to take a sustainable approach to address the issues that affect the delta communities. Re-engineering the amnesty programme is an example of this.’’

    He frowned at the recent spate of attacks by militants disrupting oil and power installations.

    “If the militants and vandals are testing our resolve, they are much mistaken. We shall apprehend the perpetrators and their sponsors and bring them to justice.

    “The policy measures and actions taken so far are not to be seen as some experiment in governance.

    “We are fully aware that those vested interests who have held Nigeria back for so long will not give up without a fight.

    “They will sow divisions, sponsor vile press criticisms at home and abroad, incite the public in an effort to create chaos rather than relinquish the vice-like grip they have held on Nigeria,’’ he maintained.

    According to President Buhari, the economic misfortune the country is experiencing from the very low oil prices has provided an opportunity to restructure the economy and diversify.

    He said that his administration was in the process of promoting agriculture, livestocks, exploiting the solid mineral resources and expanding the nation’s industrial and manufacturing base.

    This process, he said, would make the nation to import less and make the social investments necessary to allow the country to produce a large and skilled workforce.

    He revealed that the Central Bank of Nigeria (CBN) would also offer more “fiscal incentives for business that prove capable of manufacturing products that are internationally competitive.’’

    He said the APC-led government remained committed to reforming the regulatory framework, for investors by improving the ease of doing business in Nigeria.

    President Buhari noted that already the first steps along the path of self-sufficiency in rice, wheat and sugar (big users of our scarce foreign exchange) had been taken.

    According to him, the Labour Intensive Farming Enterprise will boost the economy and ensure inclusive growth in long neglected communities.

    While expressing concerns over rising cost of foods such as maize, rice, millet, beans and gari, the president said the special intervention funds through the Bank of Agriculture would provide targeted support.

    “Farmers tell me that they are worried about the cost of fertilizers, pesticides and the absence of extension services.

    “The federal and state governments are on the same page in tackling these hurdles in our efforts at increased food production and ultimately food security.

    “I would like to take this opportunity to express my appreciation for the increasing role that our women are playing in revitalizing the agricultural sector.

    “Modern farming is still hard and heavy work and I salute our Nigerian women in sharing this burden.’’

    President Buhari announced that the government would soon inaugurate the national women’s empowerment fund.

    He disclosed that he had already approved N1.6 billion in micro-finance loans to women across the nation to assist in rehabilitating the economies of rural communities, particularly those impacted by the insurgency and conflict.

    President Buhari reassured the international community of Nigeria’s commitment to strengthen democratic principles and sustain the fight against terrorism and violent crimes.

    “We want to assure our neighbours, friends and development partners that Nigeria is firmly committed to democratic principles.

    “We are ready partners in combating terrorism, cyber crimes, control of communicable diseases and protection of the environment.

    “Following on the Paris Agreement, COP 21, we are fully committed to halting and reversing desertification.

    On restructuring of Ministries, Departments and Agencies (MDAs), Buhari said that his administration was committed to the restructuring exercise and the rationalisation of the MDAs for more efficient public service.

    Budget 

    “In all my years as a public servant, I have never come across the practice of padding budgets.

    “I am glad to tell you now we not only have a budget, but more importantly, we have a budget process that is more transparent, more inclusive and more closely tied to our development priorities than in the recent past,’’ he said.

    The president further noted that his administration had delivered significant milestones on security, corruption and the economy.

    “In respect of the economy, I would like to directly address you on the very painful but inevitable decisions we had to make in the last few weeks specifically on the pump price of fuel and the more flexible exchange rate policy announced by the Central Bank.

    “It is even more painful for me that a major producer of crude oil with four refineries that once exported refined products today has to import all of its domestic needs.

    “This is what corruption and mismanagement has done to us and that is why we must fight these ills.

    “As part of the foundation of the new economy we have had to reform how fuel prices had traditionally been fixed.

    “This step was taken only after protracted consideration of its pros and cons.

    “After comprehensive investigation my advisers and I concluded that the mechanism was unsustainable.’’

    Chibok girls

    The president expressed delight over the recent rescue of two of the abducted girls, saying his administration would continue to do its best towards rescuing the remaining girls and those in Boko Haram’s captivity.

    “Fellow citizens, let me end on a happy note. To the delight of all, two of the abducted Chibok girls have regained their freedom.

    “During the last one year, not a single day passed without my agonising about these girls. Our efforts have centred around negotiations to free them safely from their mindless captors.

    “We are still pursuing that course. Their safety is of paramount concern to me and I am sure to most Nigerians.

    “I am very worried about the conditions those still captured might be in. Today I re-affirm our commitment to rescuing our girls. We will never stop until we bring them home safely.

    “As I said before, no girl should be put through the brutality of forced marriage and every Nigerian girl has the right to an education and a life choice.”

  • Volte-face as instrument of policy

    Volte-face as instrument of policy

    FEARFUL that recession could hit the Nigerian economy, the Central Bank of Nigeria (CBN) plans to relax its hitherto stringent and rigid forex policy to a flexible one to enable the market adjust itself automatically. By his many statements in recent months, President Muhammadu Buhari had in fact given indications he would defend the naira with everything he had rather than submit to market forces. The reality has now compelled a different approach. The monetary authorities and indeed the presidency will hope that the new measures are not coming late, and that the apocalypse they glimpsed some months back can be averted.

    If governing a complex and excitable country like Nigeria is really hard, the Buhari presidency never gave the impression it recognised that fact, nor admitted it is so. When confronted by restiveness in the Niger Delta, with a supposedly new militant group called the Niger Delta Avengers (NDA) blowing up pipelines, the Buhari presidency promised a crackdown similar to the one it administered on Boko Haram. In fact, the government and the military took some tentative steps by storming the creeks and presuming to smoke out the militants. But rather than abate, the crisis intensified, with the militants bombing everything in sight.

    Finally, the federal government has relented and opened channels of discussions and engagement with some militant leaders to prevent the problem from escalating beyond control. There are wars that cannot be won; and there are wars that should not be fought. It is tempting to embrace the application of force in the Niger Delta; but given the terrain, not to say the connivance of the disgruntled local population and the history of neglect suffered by the region, force should be the last resort. Previous panaceas, such as huge and continuous payouts to militants, was wrong-headed. Now, it is difficult for successive governments to extricate themselves from the needless addiction.

    What the situation calls for is comprehensive restructuring of the country. Until the Buhari government, or any succeeding government for that matter, implements new political and economic structures — in short, resolving the national question — the violence and disturbances will continue, and the governments will continue to apply palliatives and unworkable panaceas that solve nothing.

  • Fed. Govt. lack of coherent policy on physically challenged

    SIR: It is now one year and nothing has changed, nothing new has occurred as far as physically challenged people are concerned in Nigeria. Ordinarily one would have thought that the euphoria of change which came with the Buhari-led government would have translated into positive difference for the physical challenged people but unfortunately the situation is no!

    President Buhari must act fast.  Bad as it may, the remaining three years could also usher in tremendous changes and substantive difference in the lives of the physically challenged who are desperately in need of succour at all fronts.

    The problems have to do with the inability of the federal government to recognize the physically challenged as the most important minority group in the country; as well as its inability to also recognize the physically challenged as a substantive economic unit. The moment the federal, state government and local governments can come to terms with these two facts, things will be handled differently in the area of disability. It will become very easy for the government to plan efficiently, easier for government to pull a large population out of poverty and for government institutions at all levels to broaden the allocation of resources.

    Some of the urgent ideas that will benefit physically challenged people include:

    1). A small and medium enterprise (SME) fund for physically challenged people.

    There has been a lot of talk, a lot of written materials and a lot of      policy debate on SMEs but none have been considered specifically for people that are physically challenged. It is time that we set up a special SME fund for physically challenged people which is interest-free and guaranteed by the federal government. There are a lot of physically challenged people endowed with talents and skills but because of the challenge of funding they are trapped in poverty.

    2). Upgrading and expansion of all schools and institutions of physically challenged people. Since we cannot build new schools and facilities for the physically challenged people, why don’t we then upgrade all existing facilities, retrain teachers and tutors? This endeavor should be passed to all private institutions because more work is being done at the private level than even the public sector.

    3) Grant scholarships to physically challenged to study. There is urgent need to educate our physically challenged citizens to expand their knowledge and skills. Albert Einstein, the father of science was considered disabled and he still changed the world hence we must take the chance and invest more in the capacity of the disabled

    4)  Free health policy. Most physically challenged people are poor and they retain the highest figure in poverty statistics, they do not have access to health and generally they are being discriminated against, it is high time that the government and the private sector steps in to grant free health services to the physically challenged people

    5)  Sports Academy for physically challenged people. The gains and exploits which our physically challenged citizens have recorded at the paralytic games home and abroad is enough to inspire us to action but still we won’t. They have earned a place in our sporting history with all the medals and accolades they brought home. Nigeria is full of talents in various sporting activities; javelin, short-put, weight-lifting, handball etc. but they lack befitting sport facilities and trainers. The Federal Government should immediately set up a standard state of the art sports academy equipped with trainers, materials and facilities specifically dedicated to the physically-challenged.

     

    • Hon. Adeyemi Abidemi Adebola

    Lokoja.

  • Why I support Buhari’s exchange policy

    SIR: After watching Nigeria for over 25 years and seeing the “boom bust” cycle happen twice, I am now very weary of international agencies like IMF, World Bank and all these high sounding economists on CNN who prescribe policies like road side medicine peddlers who sell “cure all” medicines for all diseases.

    I definitely agree with President Muhammadu Buhari that devaluation of the Naira will only bring hardship upon all Nigerians and it will not solve the problem at hand.

    Engineers and scientists follow exact science. When they advise you on certain steps in a sequence, it is possible to predict the outcome in a deliberate way. An aeroplane will always take off and land with such certainty that we are willing to take the risk of flying even for holidays. Engineers and scientists are all able to prove what will NOT happen with some accuracy and they will back up their position with data and research.

    Unfortunately social scientists and economists are not in the same business. They are busy peddling their trade of faulty medication all over the market place without fear of reproach. They occupy all the news media like CNN, BBC , CNBC etc and spend hours analyzing and advising people, companies and countries on economic policy and even political policy. They are quick to advice on Syria and Iran but when it fails they simply move on.

    They are quick to advise Egypt and Nigeria on currency management but nobody notices how they have failed.

    Egypt is now suffering from this misdirected policy while Nigeria was saved this embarrassment by the steadfastness of our own PMB. People will recall that Egypt was one of the countries to accept the international agencies’ advice to devalue her currency. A recent report by Reuters quotes an Egyptian banker on the devaluation of the Egyptian Pound: “Traders say the crackdown has only exacerbated the crisis. People with dollars are shunning the official financial system, starving it of foreign currency. This is putting yet more pressure on the pound, with potentially dire consequences for inflation, investors’ confidence and economic growth….No one sells dollars to the banks any more. They all prefer to go to the black market which will pay them more”.

    Our president posed the following questions in the event of devaluation and I wager answers:

    Will organised labour ask for an increase commensurate to the inflation figures? Yes

    Will pump price of petrol go up? … Yes

    Will it increase production and export?  Definitely but not in the near term.

    What is the predicted gap between the parallel rate and the official rate after devaluation?  No one knows.

    Have the prices of goods and services doubled since the parallel rate has practically doubled?  No.

    Will the prices of goods and services double once we devalue to N280 officially? Definitely)

    Will it cause widespread inflation? No Brainer.

    Where devaluation is not matched with increased supply of dollar on a “willing seller willing buyer” basis,  in my opinion will not solve the problem. Therefore we should avoid it unless we are sure devaluation will increase dollar supply. It will only increase poverty for already

    Yes it a well known economic principle that devaluation encourages export. But in the short term, there is nothing to export. The few exporters we have already bring their export proceeds through the back door and sell at black market anyway.

    I support PMB on devaluation. Perhaps we should take our time to observe the patient before taking the surgeon’s knife to start an operation where we are unsure of the final outcome.

    Perhaps creating a third-tier interbank rate that allows people to inflow funds to settle expenses, credit cards bills, school fees etc will reduce the pressure on the roadside market. But the transactions should be subject to international rules and anti-money laundering rules. Spending money on Amazon, Konga and other online purchases up to a limit depending on the category of customer. A limit of $500 per week up to a maximum of $4,000 per annum will definitely be enough for many young people and it will prevent people from buying cash on the road side to pay international fees ACCA annual dues etc. This will greatly reduce the pressure on the currency for now and it will satisfy the majority of people who do millions of simple transactions daily. It will also allow many people to remit funds to Nigeria for their family and friends.

     

    • Yemi Idowu,

    Lagos.

  • NCC seeks review of forex policy

    NCC seeks review of forex policy

    • ‘33.7m excluded from telecoms revolution’

    The Nigerian Communications Commission(NCC) yesterday urged the Federal Government to relax its fiscal and monetary policy especially as it affects access to foreign exchange (forex). It lamented that the development is a threat to the provision of infrastructure that will assure the realisation of President Muhammadu Buahri’s cardinal objectives of job creation, security and anti-graft war.

    Its Executive Vice Chairman, Prof Umar Dambatta who spoke at the ‘Focused Industry Stakeholders’ Forum organised by the Universal Service Provision Fund (USPF) and Hackathon Award’ with Universal Access: Eliminating The Inclusion Barriers, as its theme, lamented that the country ranked 134 out of 144 countries in global ranking in the area of infrastructure.

    He also said despite the over $32 billion investment in the telecoms sector, about 33.7 million people are still excluded from the telecoms revolution as they are either underserved or unserved.

    Prof Dambatta appealed to the Federal Government to give forex concession to the telecoms industry, relax the fiscal and monetary policy so that the campaign promises of the Buhari would be realised, adding that the provision of affordable ubiquitous broadband infrastructure is central to all the goals.

    According to him, the Federal Government should revisit the policy that restricts forex access to investors for ‘critical infrastructure’ promising that the Commission will monitor the utilisation of forex so that it is not abused.

    He said the low global ranking of the country should be seen as a wake-up call, arguing that all hands must be on deck to bridge the infrastructure gap in the industry.

    Speaking on 33.7 million digitally excluded population, he said the unserved population in the country has been reduced from 36.8 million (24.5 per cent) in 2013 to 33.7 million (22.5 per cent) last year based on the Access Gap study and using the 150 million population benchmark. “With effective partnerships, we can achieve more in the coming years,” Dambatta stressed.

    He said the USPF will play significant role in achieving four of the eight-point agenda of the Commission towards repositioning the telecoms industry, adding that it would play significant role in the facilitation of broadband penetration; improve quality of service; promote ICT innovations and investment opportunities and facilitate strategic industry collaboration and partnership..

    USPF Secretary, Ayuba Shuaibu, said USPF was established to promote availability of telecoms services across the country, adding that the fund existed to enable operators deploy services in areas considered not viable.

  • Of Buhari’s foreign policy 

    SIR: A lot has been written on President Muhammadu Buhari’s foreign policy endeavours in his first year.  Unsurprisingly, most commentaries relate to his perceived ‘junketing’ while Nigeria’s domestic scene remains in a flux.  Much of the criticism rests on the N5.5 billion reportedly spent on foreign travels in 11 months of Buhari’s presidency. Such criticisms, to the extent they are partisan and sentimental are misplaced.

    Since May 29, 2015, President Buhari has undertaken a total of 26 foreign trips, spending some 50 days outside Nigeria.  Some Nigerians deem such peripatetic disposition excessive. Yet, Buhari’s activist foreign policy role must be considered against his personal convictions, and against the backdrop of his foreign policy engagement as a military leader.

    Hitherto, Nigeria enjoyed comparative advantage in Africa’s foreign policy realm. Her power position as Africa’s foreign policy bellwether grew from her domestic antecedents and strength.   Paradoxically, just as Buhari inherited a parlous economy, dwindling foreign reserves and crashing oil prices, he also inherited a much-diminished foreign policy capacity and credibility, plus the fact that Nigeria’s diplomacy still can’t be operated in a vacuum; but in the economic, political, and institutional environment both inside and outside the government.

    Months before Buhari appointed his ministers, he personally conducted his foreign policy, using career diplomats as advisers.  As if to affirm that “the test of foreign–policy principles lies in their application to u and more distant states”, he engaged both categories early and personally. Though he eventually appointed a foreign minister, it’s safe to assume that he reserved for himself, albeit informally, core foreign policy responsibilities.

    Doctrinally, Buhari’s foreign policy trajectory has positively been devoid of labels.  But it’s unclear if this is by design; a tacit departure from Nigeria’s erstwhile sloganeering. Whatever is the case, it’s only the level of solvency of a nation’s foreign policy that matters.  And solvency can be defined as return on investment or those tradeoffs that enhance the nation’s economic, political and military wherewithal.  President Buhari campaigned on the platform of rescuing the Chibok girls, tackling Boko Haram, and waging an anti-corruption campaign. He also pledged to par the Naira to the Dollar. These resonating challenges persist.

    Despite the presumed gains from Buhari’s travels, Nigeria’s economy is still tanking, and replete with shortage of fuel, electricity, foreign exchange, faith and trust. As the Financial Times noted, “No economy can survive without fuel, electricity or foreign exchange.”  Of the 26 trips undertaken so far, the China visit stands alone in yielding clear results.  Though not initiated by Nigeria, Chinese authorities in their enlightened self-interest, and to safeguard the lopsided Sino-Nigeria trade imbalance, offered Nigeria a Yuan-Naira currency swap and a $6bn loan.  The currency swap, which is aimed more at undermining the US dollar as Nigeria’s main foreign exchange reserve, helps Buhari’s foreign policy solvency only in a limited way. As if to confirm the vagaries of such on-the-fly foreign policymaking, after the swap was announced, the Naira weakened further.

    Three plausible strands may have influenced Buhari’s foreign policy inclinations: the desire to engender a new and robust foreign policy thrust; the desire to revitalize Nigeria’s stalled foreign policy impetus; and the desire to sustain the past and renowned foreign policy glory by hands-on engagement. Buhari conducting his foreign policy evokes power, dedication and priority. But whatever instructed his decision to assume full responsibility for his foreign policy machinery, also bequeaths on the president, total absence of plausible deniability, should his foreign policy performance prove lacklustre eventually. Staying home more in his second year may help sanitize the domestic environment and operational theatre, now remarkable for being nebulous,  disquieting and for its imperviousness. While applauding President Buhari’s constructive engagement thus far, he needs to be advised that the foreign policy solvency he seeks must be orchestrated from home. The problem lies there as does the foundation of his foreign policy solvency.

     

    • Oseloka H. Obaze,

    Awka, Anambra State.

  • Ministry reviews water, sanitation policy

    The Lagos Ministry of Environment in partnership with the Save the Children, an international non gevernmental organisation (NGO) for children, with support from  Reckitt Benckiser, has reviewed the draft of the Lagos State Water and Sanitation Policy (WASH), in preparation for its presentation to the state executive council.

    The Commissioner for the Environment, Dr. Babatunde Adejare    promised to ensure a speedy implantation of the policy  once passed by the state executive council, assuring that the implementation of the policy will lead to a decline in childhood mortality.

    “Through the WASH Policy, we are teaching mothers to be more hygienic and use safe water to provide food for their babies. The number one killer of children is diarrhea so if we take care of the safe water part of it, that would lead to decline in the death of children,” Adejare said.

    An advocacy group member, Adviser for Save the Children, Mr.  Babatunde Folorunsho, said the organisation is hopeful of a fruitful outcome, especially as the implementation of the policy could help save more lives in the state.

    Part of the recommendations made from the retreat was the need to have a WASH department in all the local government areas within the state and the need to also employ more environmental health officers as well as develop a robust mechanism for enforcement and compliance of sanitation laws within the state.

    The retreat, which held in Lagos, was attended by heads of agencies and departments in the Ministry of the Environment; officials of the Lagos State Water Corporation (LWC); the Lagos State Waste Water Management Office (LSWMO); Lagos State Water Regulatory Commission (LSWRC) and the Lagos State Environmental Protection agency (LASEPA).

  • Understanding Oshiomhole’s industrialization policy

    It may not be possible for a government to build industries across the state and turn the economy around within a short time of eight years. There are however quick-wins that a serious government can undertake to achieve stunning results to the acclaim of a famished people. In other words, there are opportunities that a government can exploit immediately they present themselves to boost the living standards of the people. These opportunities will always present themselves in the life of every administration and whatever an administration makes of such opportunities depends on that administration’s policy thrust as powered by its economic team, if any.

    Bottomline is, even a bad situation can be quickly turned around by a government that thinks on its feet. That is what Governor Adams Aliyu Oshiomhole has succeeded in doing in Edo in his little more than seven years of being in charge. Today, the result is there for all to behold.

    The governor had stated from the onset that governments have no business running industries but creating the enabling environment for investors. Indeed, he had stated that his primary focus was to ensure that businesses thrive through the creation of enabling climate. Today, the proof of that conventional wisdom is the avalanche of private sector industries dotting the entire length and breadth of Edo State – thanks to the vastly improved environment for doing business which his policies have brought about.

    As they say – the proof of the pudding is in the eating. That the industrialization policies are impacting positively on the socio-economic landscape of the state is no longer in contention. The fact that multinationals like Dangote Group of Companies, Yong Xing, Wells Farms, Bua Group, Azura power among others have registered their presence in the state goes beyond mere acknowledgement of the changing times but of the immense possibilities in the future. To be sure, some of these investments come under public-private-partnership initiative of the state government; others are wholly private sector driven. Together, the state is the richer for it.

    Never mind that dearth of statistics has remained the bane of the nation, it is projected that no less than 100,000 job opportunities have been created over the course of the last seven years under the Oshiomhole administration. These jobs cut across the public and private sector just as they straddle information and communications technology, health and social welfare and other sectors of the state’s economy. Some of the jobs directly created are in the Information and Communication Technology Agency, the Board of Internal Revenue, Edo State University, Central Hospital. These agencies among others, have employed and continue to employ thousands of youths many of whom would have remained in the labour market were these opportunities not opened up to them. That is not all. The state government is retooling Central Hospital to a Five-Star Hospital; it is building a new university all of which would further boost economic activities of the state and its people.

    Today, the state can count its chicks in the spin-off from private investment promotion. Wells Farm alone for instance, promises to employ over 80,000. Ditto Bua and Dangote both of which are also looking at employing thousands of youths just as Okpella Cement factory has employed several youths and still counting. Yong Xing and Azura power have also employed and will continue to employ youths in their thousands. Add to this the fact that workers in the public service are earning salaries as at when due; the pensioners are of course not left out. Taken together with the newly engaged workers in the various companies all of whom are now contributing actively to the economy, the state’s rising profile under its current helmsman is better appreciated.

    This is where the effects multiplier comes in. To bring the picture of the concept clearer home, it refers to the increase in final income arising from any new injection of spending. In simple terms, if the beneficiaries of the different opportunities being created in the state, for example, opt to complete the building of their new houses with their salaries, the project injects extra demand and output into the economy of the state. Imagine that not a few businesses including architects, suppliers of blocks, sand, water, iron rods, wood etc. will benefit directly or indirectly from the beneficiaries’ expenditure. The building of a new house, in other words, generates a new flow of income which includes wages and profits. The workers in turn engage drycleaners or washer men, lesson teachers, mechanics, artisans among others. They pay rents, if they are not building their homes. As for companies that have opened up in the state, their various host communities will benefit not just in terms of tremendous exposure but also in terms of increase housing needs and other infrastructure.

    As would be expected, the net effects of the development will extend beyond the frontiers of the state to neighbouring states. After all, economists will argue that when income is spent, the spending becomes someone else’s income which in turn stimulates another wave of demand and supply spawning investment by individuals, construction firms and business entities, not least saving by households – and ultimately the national GDP. The resultant boost in the GDP is called the multiplier effect.

    Truth is – it seems fairly easy to appreciate the direct impact of the physical engagement of the workers in terms of their salaries and wages. This is a far cry from the multiple impacts spawned by the hospitable environment deliberately promoted by the Oshiomhole administration. It is in the understanding of the linkages that justice is done to the Oshiomhole legacy.

    Today, economic potentials of Edo State have grown to humongous proportions – thanks to the creative policies of the Oshiomhole administration. Aside attracting investors to the state, there is no doubt that the foundation for the future has been firmly laid. In years to come, citizens of Edo State will certainly remember the Oshiomhole years not just in glowing terms but specifically as the golden years of its industrial transformation.

     

    • Mayaki is Executive Director, Media and Public Affairs, Edo Governor’s Office.

  • Buhari’s exchange rate policy: Fragility of goodness

    President Buhari has refused to give an inch in his rock-solid determination not to devalue the naira. Unsurprisingly, this has earned him critical opprobrium among professional neo-classical economists and others knowledgeable in the links between exchange policy and economic growth and corruption. This much was revealed in his recent Al Jazeera interview and discussions among many Nigerians. To many, the president’s foreign exchange policy does not make economic sense. But is that really true? Let me offer a perspective that will shed some light on the sense and sensibility of the president’s “stubbornness” with regard to devaluation.

    Before I do that, I would like to state upfront that if I were the president or his minister of finance, I would take the easy and tested neo-classical economic approach to the management of the Nigerian economy. It could deliver quick results and boost the confidence of investors, within and without. Having said all this, I would like to add by saying there is a path to robust national economic development through the president’s intransigent exchange rate policy. Alas, it is an arduous path. I am not sure if the president (one-term or two) or Nigerians have the time and patience for the road he has chosen to bear sufficient dividends.

    This is not his only problem. The main challenge in my thinking is that the kind of exchange rate policy Buhari’s government has decided to pursue requires a more comprehensive policy framework to uplift our national economy than has been presented so far. I have not heard the president’s men and women articulate such a multi-edged policy regime, which will be largely market-driven, integrally endogenous, and patently patriotic. The economic minds in Buhari government may think they are on a good path to economic Eldorado, but the path will prove to be very fragile if they do not immediately forge and implement a robust set of policies and programmes undergirded by a well thought-through social philosophy. It is within such a cohort of policies and programmes that his current exchange rate policy makes eminent sense.

    Buhari’s exchange rate policy makes good sense in this four-pronged national financial management framework. It is one that pursues value integrity, value solidarity, and value subsidiarity as my late friend economist Ashikiwe Adione-Egom would put it. By this he meant that the currency, financial, commodity, and industrial markets must be consciously linked and administered to yield endogenous growth.

    First, it is not enough to reject the devaluation of the naira while it is depreciating in the currency market. There must be economic policies that are in place to give value integrity and constancy to the national currency. Second, the government needs to find a way to mobilize savings through its monetary and financial policies and distribute such via the market to industries to aid long-term investment.

    If the Buhari government and CBN want to continue with their current exchange rate policy, then they need to have monetary and financial policy regimes that will be in financial solidarity with Nigeria’s development. Solidarity implies that the monetary system is channelling medium to long-term savings instruments at low interest rates to the industrial markets to grow local content in manufacturing and spur endogenous development.

    If the government and its CBN governor cannot show us how the financial system is (or will be) solidly connected and committed to the industrial and productive sectors of our nation, then, I am afraid, all the current talk about endogenous development will amount to underperformance. Frankly, this is why I maintain that the path the president has chosen is a fragile one—nonetheless, workable. Not that his nationalistic approach cannot lead the economy to prosperity; the problem is that the amount of work required to get us there is daunting. Besides, the president would need experts who are not only trained in orthodox neo-classical economics, but also in heterodox economic theories.

    The third major policy focus will be the development of a network of regional commodity exchanges that will channel commodities to the industrial and consumer markets even as they provide better decision-making information for farmers and merchants and enable them to efficiently buy and sell their goods. Of course, for these regional commodity exchanges to work, we have to also develop a system of commodity banking.

    Now, we have come to the final arm of the four-pronged approach to the kind of patriotic national economic management that Buhari is gesturing to but have not yet fully articulated. The president needs to put in place policies that will enable and empower people to use the resources available to them in their regions, states, and rural areas to create jobs for themselves. Nigeria’s ability to generate this kind of endogenous economic development that will accent value subsidiarity depends on sound (and patriotic) currency and financial markets.

    Egom would put it this way: A goodly operating currency and financial market reticulates jobs to all economic regions, spreads industries around, and encourages productive activities from bottom-up. Such currency and financial markets do not encourage economic activities to be concentrated at cities and urban centres when they could be best carried out in rural areas. Besides, economic activities are not to be allocated in the cities or urban areas to the detriment of rural regions.

    Buhari has high patriotic hopes for our country but his policy of rejecting the devaluation of the naira at this time in order to spur endogenous development may not enable him to quickly realize his lofty dreams within the current parameters of our national monetary-financial systems, which are oriented towards the outside world. The monetary-financial systems of our economy are not resource-conserving and are hostile to endogenous economic development. They cannot usher in a robust environment that can create and sustain symmetry and evenness in the distributing growth, jobs, goods, and services across the sectors and regions of country. The monetary systems have not wedded the financial circulation of money (savings in the banks and stock exchanges) to industrial circulation (money-capital financing production, industries, commodity exchanges, and long-term development projects). All these will need to change if the president is to succeed in his chosen challenging course.

    President Buhari has made a clear choice about the kind of national currency management style he wants to use. His choice is not atavistic or unthinkable as many of our so-called experts have argued. His problem lies elsewhere and it is threefold. First, he is gesturing to a drastic change of economic direction and orientation that the nation may not be ready for at this time. At least, the government and APC have not sufficiently prepared the citizens for it. Second, his economic savants and strategic communication experts have not been able to clearly articulate the robust policy framework within which the “stubborn” exchange rate policy sits. Third, the government has not articulated the kind of social philosophy and social-justice vision that will energize Nigerians towards the economic future he is frantically gesturing to. As long as this set of challenges remains, whatever goodness he intends with his exchange rate policy is at best very fragile.

    What I have done in this essay is not perfect, but it serves to nudge President Buhari’s ideas and reflexes towards a systematic economic framework in order to reduce the fragility of goodness in his exchange rate policy.

    • Wariboko is Walter G. Muelder professor of social ethics at Boston University, United States.