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  • Fidelity Bank MD urges Nigerians to save

    Fidelity Bank MD urges Nigerians to save

    The new Acting Managing Director/CEO of Fidelity Bank Plc, Alhaji Mohammed Lawal Balarabe, has called on bank customers and Nigerians in general, to always save for the rainy day.

    Speaking at the sixth and last draw for the Fidelity Bank Save-4-Shelter promo draw  in Lagos, the bank chief said savings is the hallmark on which great economies are built and urged customers to embrace the culture.

    The bank chief, who phoned and congratulated the star prize winner, Ibedu Clara Ego, who won a duplex in Lekki, Lagos, under the Save-4-Shelter promo, said the redemption of the prize shows that the lender keeps its promises.

    “The Save-4-Shelter promo was conducted with high level of integrity. As a bank, we always keep our word; our promos always focus on things that add value to the lives of people and the society,” Balarabe said. He disclosed that the lender will soon unveil another new promo that would equally benefit its customers and create wealth for beneficiaries.

    Other winners during the draw were Enoche Christopher who won N2 million; Isaac Oladele, N1 million; Obiorah Godwin, N500,000; Grace Ejeh, N500,000; Ibrahim Aisha, N500,000. There were others that won consolation prizes.

    Also, the bank’s Executive Director, Shared Services, Mrs. Chijioke Ugochuwku said that what the financial institution is doing is to continue to encourage savings culture and appreciate customers that have been loyal  to the bank.

    According to her, ‘’It is our duty to make sure that people continue to save, even as we continue to perform our financial intermediation role.’’

    The draws were conducted with representatives of the National Lottery Regulatory Commission (NLRC), and Consumer Protection Council (CPC).

    Deputy Director of the CPC, Joshua Nggada, lauded the bank for conducting the promo and the draws, with integrity and transparency. “The feelings and expressions from the winners showed the level of excitement and happiness the prizes brought to their lives and businesses. We want the bank to continue to uplift its customers,” he said.

  • Can CBN save the naira?-2

    Can CBN save the naira?-2

    The debate on the adjustment of the exchange rate of the naira is beginning to gather momentum. The nation is understandably divided over it. If it can be avoided no one wants a devaluation of the naira. But the naira is now under increasing demand pressures. The unofficial exchange rate now stands at nearly N400 to the US dollar, while the official rate hovers around N200. The following article by me on the issue was first published in this paper in October, 2015. At the time the naira exchange rate in the parallel market was N238 to the US dollar. It is being published again, without any editing by me, because I believe that a downward adjustment of the naira exchange rate is now inevitable. The CBN cannot save the naira from devaluation now unless there is a substantial build up of our foreign reserves through increased oil exports and revenue. This is unlikely in the short to medium term. Further delays in allowing a more flexible exchange rate will worsen the situation and constrain economic growth.

    As in 1984-5, Nigeria is again at loggerheads with the international financial institutions. It is under strong and persistent pressure from the World Bank (WB) and the International Monetary Fund (IMF) to devalue its national currency, the naira. At a recent meeting of the WB/IMF group in Lima, Peru, a senior official of the IMF was reported as urging Nigeria to devalue its currency ‘as a way of adjusting to the reality of the current (global) economic conditions’. These conditions include the sharp decline in the global price of oil, as well as a fall in the price of non-oil/commodities exports. Specifically, the IMF official argued that exchange rate pressures in Nigeria and other oil producers had been considerable since last year. Nigeria’s oil exports and revenues have fallen considerably, while the high demand for foreign exchange in Nigeria has continued to exert considerable pressure on the exchange rate of the naira. In other words, while earnings from oil and non-oil exports have in the past year declined by over 70 per cent, the demand for foreign exchange to finance Nigeria’s huge import bills has not fallen. Because of Nigeria’s high import dependency, there is a supply/demand gap in foreign currencies that is putting pressure on the naira exchange rate. There was also some reference by the WB/IMF to ‘uncertainties in Nigeria’ about the May elections and the policy direction of the new federal government regarding urgent policy reforms. These were claimed by the WB/IMF as additional factors that have led to pressures on the naira. Very few informed analysts will dispute this.

    But the CBN Governor has rejected the calls for the devaluation of the naira. As an alternative to a more flexible exchange rate, the CBN has introduced administrative measures that are intended to limit access to foreign exchange, as well as a ban on some 41 listed import items as a way of reducing the demand for foreign exchange. The CBN Governor has vowed to defend the naira at all costs against any devaluation, adding that it was a question of nationalism. Economic nationalism is good and popular, but it has to be based on the prevailing economic realities. If it has any potential of hurting the economy, then it should be reviewed. The WB/IMF has dismissed the CBN administrative measures aimed at import restriction as detrimental to the Nigerian economy, as both local and private investors see these measures as very detrimental to their economic activities. There is already considerable concern in the Nigerian business circles over these restrictions, as their impact on business in Nigeria will be negative, with loss of productivity and jobs. Instead of these administrative measures, the WB/IMF are urging the federal government and the CBN to permit the naira exchange rate to adjust so as to reduce the demand for more foreign exchange, and to help contain the level of imports that is no longer sustainable in the light of the external shock (the decline in oil revenues) to the Nigerian economy. So far, the CBN has ignored these local and foreign pressures to devalue the naira.

    In all these, it appears that, right now, the federal government is in support of the position of the CBN that the current exchange rate of the naira should be maintained at all costs. In effect, for now, President Buhari has ruled out any further devaluation in the exchange rate of the naira, despite its volatility. This is not surprising. When he was in power from 1984-85 as a military ruler, Buhari rejected similar calls by the WB/IMF on Nigeria to devalue its currency. Then, Nigeria faced a severe external shock, worse than the current one, with severe balance of payments disequilibria, a huge foreign debt, and lack of foreign credit. Nigeria had drifted into economic chaos during the Shagari government, which lacked the capacity to effectively tackle the underlying structural problems of the Nigerian economy. Tougher economic measures had become urgent and imperative. The nation was on the verge of total economic and financial collapse. Productivity in the manufacturing companies fell, leading to a rise in unemployment and long food queues. Nigeria resorted to rationing ‘essential commodities’ as a result of severe import restrictions.

    In response to the severe economic and financial crises, the Buhari military regime also resorted to import licensing, trade by barter and counter trade. But all these administrative measures failed to address the underlying structural imbalance in the domestic economy. Buhari rejected the advice of the WB/IMF to introduce a structural adjustment programme (SAP), the highlight of which was the devaluation of the naira, to curb imports and promote non-oil exports. Buhari considered the measures being urged on him as impractical and politically inexpedient, as it would certainly lead to an inflationary spiral in food prices and other vital imports. In Egypt, similar currency devaluations had led to ‘bread riots’ and instability in the Arab world, a situation that could threaten the survival of his new military regime. He considered the WB/IMF prescription for devaluation as an invitation to suicide and so rejected it.

    But in December, 1985, Babangida replaced Buhari as military ruler. Shortly after, he introduced what he called a ‘home grown’ SAP after a long and heated debate in the country, with the overwhelming majority of the Nigerian public rejecting any devaluation of the naira. But courageously, he pushed through the tough economic and financial reforms that the situation called for, including the massive devaluation of the naira. The reforms soon paid off. Imports fell and non-oil exports expanded considerably. Nigeria returned to fiscal balance and balance of payments equilibrium. New foreign credits were extended to Nigeria, the food queues ended and the economy recorded a modest growth. Of course, the global rise in oil prices assisted the process of economic recovery, but the exchange rate adjustment introduced at the time by the Babangida regime and the CBN made this modest economic recovery possible. Had he not taken those urgent and necessary monetary and fiscal measures, particularly the devaluation of the naira, Nigeria’s economic crisis would have worsened. Of course, Babangida later abandoned some of these effective economic and financial measures for reasons of political expediency. This soon undermined the modest economic recovery achieved during his regime.

    Right now, we are at a similar crossroads as in 1985-86 when the issue of the exchange rate of the naira evoked very strong negative response from the government and the Nigerian public. Again, the CBN has rejected all calls for a downward adjustment of the naira. But can it really save the naira from further devaluation? Right now, the official exchange rate of the naira to the US$ is N200 to 1, while at the parallel market, the exchange rate is N238 to the dollar. This is a clear indication that the naira is overvalued. One indicator of overvaluation of a currency is the difference between the official nominal exchange rate and the parallel market exchange rate. The parallel exchange rate is probably nearer the net effective exchange rate than the official rate. One possible cause of the probable overvaluation of the naira is the rising inflation rate that now stands at nearly 10 per cent. This was caused by the excessive expansionist policy of the federal government in recent years. So, the issue of devaluation is not simply a question of nationalism or patriotism. It has more to do with the global recession, the fall in the value of our exports and the failure caused by our inconsistent economic reforms over the years to diversify the economic base.  Nigeria’s domestic economy is not yet mature. Growth is still fragile as it depends mainly on oil exports. This situation makes it difficult for the Nigerian economy to successfully withstand the external shocks we have now had for a year. Market conditions are not always perfect. They can be easily manipulated by financial speculators. And devaluation is not always the answer to external shocks of the kind now facing Nigeria. But any alternative offered by the financial authorities must be effective, sustainable and credible. Administrative restrictions lack these qualities.

    To save the naira from further devaluation, oil exports and revenues need to rise significantly. The short term prospects for this are not encouraging. Commodities’ prices are also falling and do not offer Nigeria any real alternatives. Nigeria’s foreign reserves now stand at less than US$30b, enough only for four to six months’ imports. The SWF of US$1b has been depleted by US$700m to meet domestic deficits, leaving a paltry balance of US$300m. Our foreign debt is growing, exports are falling, and there is a rising demand for foreign exchange from the manufacturing sector. The volatility of the naira exchange rate is leading to capital flight and a disincentive to both local and foreign investment in the economy. Planning is made more difficult by the volatility in the exchange rate of the naira. Foreign investors will be looking to other countries with financial stability, particularly in respect of exchange rates. In the circumstances, it will be tough for the CBN to maintain the current official exchange rate of the naira.

    Of course, the World Bank and the IMF are sometimes wrong when they urge devaluation on developing countries facing external shocks, irrespective of their respective situation. Some countries need it, while others do not. And the refusal to undertake the necessary exchange rate adjustment is not simply a question of patriotism or nationalism as the Governor of the CBN was reported as claiming. Even China, the second largest and fastest growing economy in the world, has had to devalue its national currency by nearly 30 per cent to boost its exports. The result has been positive. This year, China’s economy will grow by nearly 7 per cent, while Nigeria’s growth rate will fall from nearly 7 per cent to only 2.5 per cent. Actually, the US wanted China to revalue its currency. Instead, it devalued it to promote its exports. Many of the advanced industrial countries have also had to devalue their currencies at one time or the other. In 1966, the British Labour government devalued the pound sterling when it needed to borrow from the World Bank and the IMF.  Brazil, Chile, Argentina and Mexico are some of the BRIC countries that have had to devalue their currencies in recent years to cope with external shocks to their economies. Most African countries, including Ghana, Zimbabwe and Tanzania have had to devalue their currencies in the past year. If it devalues, Nigeria will not be the only African country to do so. And it is always better to devalue early than later under stronger international pressure.

    So, if it decides to devalue the naira, Nigeria will not be an exception, as it is simply a matter of adjusting to external shocks. If we do not devalue now, then we will have to take additional economic and financial reform measures, as tough as those of the Babangida years. These will still have to include the devaluation of the naira. Such reforms will have to include a review of the existing oil subsidy, which cannot be sustained financially for much longer. Major reforms will also have to be undertaken in our oil sector to eliminate the vast corruption and oil theft there. The cost of government will have to be cut considerably. As long as the reform measures are fair and transparent, they will be accepted by the Nigerian public. Smuggling of imports into Nigeria through our porous land and sea borders will make nonsense of the present strategy of import controls. Unless there is a significant recovery soon in our oil exports and revenues, I believe that Nigeria will be forced to devalue its currency, the naira, before too long. In fact, by the second half of next year the dollar exchange rate could be as high as N300. An early and modest devaluation of the naira will be in the overall economic interest of our country.

  • God save the kings!

    God save the kings!

    For progressives who also embrace tradition and perceive no contradiction in so doing, there is much to inspire and encourage in recent news.

    Let me start with a fundamental question? Is there a contradiction with progressives embracing tradition? Or does a progressive have to defend embracing tradition? Not necessarily, especially if the idea of progressive traditionalism makes sense. By this I mean the deliberate and active encouragement of tradition moving with the times. It does make sense!

    I once had an experience with a member of the family of the late Onjo of Okeho, Oba Ereola Adedeji. It was Christmas holiday when I visited Okeho. As I drove around town I ran into a group of merry makers dancing on the street. I stopped my car in the middle of the road so they can pass by. But their leader would have me do more. He wanted me to come down from my car. I didn’t, and he considered it an insult and shouted some obscenities. I didn’t respond. He then invoked what he thought was the traditional right of a royal family which for him I had trampled upon.

    Before I got home, my father heard about it and went straight to Kabiyesi Adedeji. I had held a meeting with Kabiyesi earlier in the day on his interests in mobilising the elite for the development of the town. He was therefore embarrassed by what his younger brother had done and he called him to caution and apologise to me.  That was enough for me to want to do more for the town and for the monarch who was not going to turn back the clock of progress.

    The present Onjo of Okeho, Oba Rafiu Osuolale Mustapha, has also embraced progressive approach to tradition because it is the only way for tradition to endure.

    My experience with the traditional rulers that I have had contact with in Yorubaland has been nothing but positive and uplifting. From Oba Rilwan Akiolu of Lagos whose thoughtful response to affectionate shout of “Kabiyesi” from admirers is “Olorun lo n je bee” (That is God’s title), to Oba Sikiru Adetona, the quintessential integrity model, to my foremost senior, Oba Alani Oyede, the Olota of Ota, I have seen the best in what tradition can be. Sure, there is always going to be some uninspiring stories. But that is true of all other social and political institutions and we don’t throw away their bath waters with the precious babies.

    I had not seen Oba Oyede since 1966 when he completed his Teachers Grade II programme at the African Church Teachers’ Training College, Ifako, Agege until he showed up at the public presentation of my book on December 21 last year. As those who were at the event witnessed, it was an emotional moment for both of us.

    Senior Oyede was an all-round student. He was the school goal-keeper, the captain of the volley ball team and the college librarian. He appointed me his junior librarian and I succeeded him as the college librarian in 1967, my final year. We lived in the same Joseph House, and as I mentioned to him during my visit to his palace in Ota recently, I inherited his bed in the House.

    That Oba Oyede chose to risk his frail health to honour my invitation was the height of affection which we mutually shared. And rather than expecting anything from me, he also made donation to the Foundation which I co-chair with my wife.On my visit to his palace, he presented me with invaluable gifts to last a lifetime. At that visit, he ensured that he invited one of my classmates, Bishop S. A. Odu and it was a great reunion. The Oloris, Chief Akinyemi, the Ajana of Ota, were friendly and pleasant hosts.

    Oba Akiolu, who also graced the public presentation of my book, is a modern progressive Oba in all respects. Some years ago, Oba Akiolu visited Maryland to see a young man, who was studying there. I met him at the airport and gave him a ride to his hotel. As I tried to open the back door for him so he could sit comfortably at the back, Kabiyesi went for the passenger’s seat in the front. My request for him to take the back seat was ignored. He then volunteered the information that having been a police officer; he was comfortable anywhere and under any condition. He loaded two pieces of luggage with food items for us all the way from Lagos. That is tradition combined with progress. For extreme traditionalists, an Oba does not give; he only receives.

    Money is the root of all evils, including the evil of belittling tradition and its keepers. What is pleasing to me is that I have not heard that any of our Obas is linked with Dasukigate or Anennihgate. Indeed, they have come out to deny categorically that they had no part in the booty sharing.

    The foregoing observations are pertinent as evidence of our coming of age in the progressive development of our communities and the enlightened reconciliation of tradition with progress. For all these, there is a good reason for optimism and pride.

    However, the recent news of the visit of the Ooni of Ife, Oba Enitan Ogunwusi, Ojaja II, Arole Odua, to the Alaafin of Oyo, Oba Lamidi Olayiwola Adeyemi III, Iku Baba Yeye, coming 79 years after the last such visit by an Ooni, is the foremost tradico-progressive news of the century. That Alaafin and Ooni shook hands openly, sat together and worshipped together in celebration of the 45th anniversary of the Alaafin’s coronation is a story that must warm the hearts of all Yoruba worldwide.

    Why is it an indication of progress? There’s no denying the fact that the root of the crisis between Alaafin and the late Ooni drew the Yoruba back in the scheme of things. It prevented the public show of unity of Yoruba traditional hierarchy, which sent the wrong signal to others. If we cannot speak with one voice because our traditional rulers will not lead in that direction, can we blame anyone for marginalising us? That the foremost rulers of Yorubaland embraced peace and cooperation to push the Yoruba agenda is progress.

    Secondly, it is also not in doubt that self-centred politicians have benefitted from the division or misunderstanding between the two royal fathers over the years. And a number of them must have cheered them on while it lasted. Now, those politicians are enemies of the progress of the Yoruba and they have been shamed by the singular act of courage and patriotism on the part of the new Ooni and Alaafin.

    We must, however, not also forget that for every dancing iromi, there is a strategising drummer even if unseen and unappreciated. The drummers to whose beat the royal fathers gleefully danced know themselves and we also know them as foremost progressives. In the fullness of time, they will reap the rewards of their nationalistic and patriotic endeavours.

    I was almost ready to submit this piece when the news broke of the transition of the Olubadan of Ibadanland, Kabiyesi Oba Samuel Odulana, at the ripe age of 101. A foremost progressive among traditionalists, his experience traversed all areas of the social and political life of Nigeria. An army officer, he fought in the war of the Greatest Generation, served in the parliament of the First Republic as well as in its executive branch as Minister of State. As a co-founder of the Ibadan Economic Foundation and the Ibadan Progressive Union, Oba Odulana championed the cause of progress and development even before he ascended the Olubadan throne. His life, which crisscrossed centuries and millennials, was full of notable achievements. That he lived to see the promise of leading Yoruba Obas coming together is a lasting tribute to the sweet memories of his life and times. He is already resting in peace.

  • Mission to save lives

    Traders and artisans in Buruku community in Benue State have benefited from a free medical programme organised by National Youth Service Corps (NYSC) members in the state. OLUWAFEMI OGUNJOBI (NYSC JALINGO) reports.

    For more than five hours, the ever-bustling Buruku Market Square in Benue State was suspended for a free health mission, last Saturday. Traders and artisans left everything for the  Youth Centre to attend to health issues.

    •The Corps members giving drugs to the participants.
    •The Corps members giving drugs to the participants.

    As the medical team arrived at the venue, the traders filedout on a single queue to benefit from the programme, which was organised by National Youth Service Corps (NYSC) members serving in the state

    The outreach was organised by Millennium Development Goals (MDGs) and National Emergency Management Agency Community Development Service (CDS) groups in collaboration with Buruku General Hospital. The event was tagged: Here-To-Heal Medical Clinic.

    MDGs group, President Oluwafemi Ogunjobi said the outreach was informed by the need to reduce child mortality, improve maternal health and to combat HIV/AIDS, malaria and other diseases prevalent in the riverine community.

    He said: “Buruku is a riverine community with high prevalence of malaria, HIV and other related infections. What we have done is to identify with the people and connect them to the right source of treatment. The outreach will focus on general body checkups, diagnosis, administration of drugs for proper medication and health counselling.”

    The NYSC Local Government Inspector (LGI) in the community, Mr Malong Sauki, praised the Corps members for the gesture, urging other CDS groups to emulate them.

    The medical team for the event was led by Dr Gabriel Owoicho, a specialist at the General Hospital. Owoicho described the programme as “life-changing”, hailing the Corps members for the gesture.

    •A trader checking her blood pressure during the outreach.
    •A trader checking her blood pressure during the outreach.

    He said: “This medical mission is the first of its kind in this community. It is a laudable social enterprise intended to meet critical health needs. We shall continue to provide needed support to expand its reach to more people in the state.”

    Some of the beneficiaries were diagnosed of various ailments, including malaria and HIV. The Corps members also engaged the participants in free medical consultations, after which drugs and mosquito nets were donated to them. Some of the materials donated were supplied by some health groups in Oyo State and the General Hospital.

    Speaking to CAMPUSLIFE in Tiv, a beneficiary, Joo Terlumun, said his children battled malaria frequently but he did not money to treat them. “I don’t have enough money to take my family to General Hospital or to buy drugs. “I am glad that the Corps members come have come to our help,” he said.

    Another beneficiary, Mr. Ter Kimbi, said: “I came all the way from Tyogbenda for to benefit from the health programme. I was disgnosed of high blood pressure but I did not know I have such life-threatening condition. I got free counselling on what I would do to prevent to be healthy.”

    Chris Onyema, president of NEMA group, said he was impressed by the turnout, saying: “We are happy to come together and affect the lives of people in our host community.”

  • ‘Save us from police harassment’

    ‘Save us from police harassment’

    A Lagos lawyer, Mr. Bamidele  Ogundele, has asked the Inspector-General of Police, Solomon Arase to call to order some of his officers, who harass and terrorise some community leaders in the Lekki Area of Lagos State over land disputes.

    Ogundele, in a Save Our Soul (SOS) letter written on behalf of the community leaders, alleged that a certain Deputy Commissioner of Police (DCP), Mr. Oyinlola Adeoye of the X Squad, Force Criminal Investigation Department, Alagbon, Ikoyi, Lagos, always allow himself to be used in terrorising some principal members of the Dada Bakare Family of Abijo Town, Ibeju Lekki Local Government Area of Lagos State.

    The petition, which was jointly signed by the counsels to the family, Ogundele and Raimi Oluwaseyi Nojeen alleged that the DCP Adeoye has been using his officers  to terrorise the community. They warned that his actions, if not checked, “are capable of causing a breach of the peace, lawlessness or outright anarchy”.

    The Dada Bakare family of Abijo claimed to be  the traditional owners of a large parcel of land totalling 75,000 hectares  at Abijo Village, which was officially Gazetted by the Lagos State Government with No. 55 Volume 40 of 2007 and which is the  subject matter in suit number LD/2308/2011 before a Lagos High Court.

    The family said it was surprised when a certain Alhaji Akeeb A. Adams, a native of Lamgbasa Village in the same Ibeju Lekki, allegedly invaded their property with some land grabbers to take over their land without the consent or authority of the family.

    They alleged further that the said Alhaji Akeeb “engaged” the services of the DCP Adeoye, who they claimed has been giving security backing to the illegal and unconstitutional actions of the hoodlums hired by Alhaji Adams.

    “DCP Adeoye personally led a police patrol team to take over the Dada Bakare family land at Abijo Town without a Court Order or Execution of Court Order despite the suit pending in court by the Dada Bakare family in LD/2308/2011 against Alhaji Akeeb Alarape Adams & Ors for the illegal trespass.

    “Several members of the Dada Bakare Family including Mr. Raimi Oluwaseyi Nojeem, Mrs. Sikiratu Aduni Lawal, Chief Sadiku Noah, Mr. Kamoru Suleiman, Mr. Waheed Aluko and Mr. Sheriff Sulaimon were intimidated, harassed and arrested by the OC X Squad team without any justification.

    “Coupled with this, the rights of the Dada Bakare Family members to human dignity, liberty and freedom of movement as guaranteed by Section 34, 35 and 41(1) of the 1999 Constitution (as amended) as well as Article 4, 5, 6 and 12 of the African Charter of Human and People’s Right Law of the Federation 2004, were curtailed and violated on several occasions.

    “We forward a petition to the office of the Inspector-General of Police and our matter was assigned to the P.R.O Department of Force CID, Area 10, Abuja and the case file of X Squad, Force CID, Alagbon, Ikoyi, Zone 2, Onikan and Area J. Ajiwe Police Headquarters were all retrieved for discreet and God-fearing investigation,” the petition stated.

    The family alleged that despite the intervention of the Inspector General of Police and transfer of the case file, DCP Adeoye still continues to harass and intimidate them at the alleged instigation of Alhaji Akeeb Alarape Adams.

     

     

     

  • How to save naira, by economist

    In the face of dwindling oil prices, the naira exchange rate should be adjusted to reflect the prevailing economic reality.

    By so doing, the Central Bank of Nigeria (CBN) will be bridging the gap between exchange rate in the official and parallel (black) markets, an economists has said.

    Mr Bismarck Rewane, Financial Derivatives Company Limited Managing Director, urged the CBN to act now to avert a worse economic failure.

    Crude oil prices closed higher on Monday after bouncing back from six and half-year lows. Specifically, oil is trading at less than $50 per barrel, half the price of a year ago.

    Rewane said the CBN needs to adjust the local currency in view of developments in the global market, saying “if you don’t do the right thing at the right time, you may do more later.”

    “Sooner or later, the currency will adjust because you cannot create a synthetic situation. And your signals must be consistent and logical. If you know that you have enough money to support the currency, then why are you locking the door? So, there are some inconsistency in signal and the price,” he added.

    According to him, the challenges facing the Nigerian economy presently are more of external. “If you are a Nigerian government official and you came to power with the belief that if you fix the refineries and others, things would be fine. But the problem has gone beyond that! External imbalances are different from internal imbalances.

    “Once you are integrated with the rest of the world, what happens over there affects you and you cannot run contrary and it is a question of time before you fall in line,” he argued.

    The economist noted that crude oil price is determined by the market and geo-political considerations, adding that once the oil price came down, the four countries that were mostly hit were Russia, Venezuela, Iran and Nigeria.

    “So, we are looking for an optimal solution. If you asked me a year and half ago, what is the floor price of crude oil, I could bet with you that it will not go below $95 per barrel and then the price was $110 per barrel. And I was considered to be one of the realistic or pessimistic observers. If you asked me six months ago, I would have said $65 per barrel. But if you ask me today, I will quickly grab $45 per barrel,” he said.

    Despite the oil price volatility, Saudi Arabia, the world’s largest oil exporting country, has maintained its production levels despite a collapse in the price of oil. It may issue bonds, or Islamic bonds known as sukuk to finance some spending. The kingdom has more than $600 billion in reserves it can draw upon should expenditure outstrip income from oil exports.

    The country has built reserves, cut public debt to near-zero levels and is now working on cutting unnecessary expenses while focusing on main development projects and on building human resources in the kingdom.

    He said the total revenue shared by all governments in August through the Federation Accounts Allocation Committee (FAAC) declined to N511.8 billion. This was based on average oil price in June of $63.75pb and is expected to further fall to N320 billion this month.

    He said the dollar appreciation may push oil prices further down, adding that August FAAC was down slightly by 1.3 per cent when compared to N518.5 billion in July figure.

    He said although states have started receiving CBN intervention fund worth N338 billion, debt repayment will become difficult with the slide in oil prices, adding that some states have already restructured previous debt obligations.

    Rewane’s position which is contained in the FDC’s September Economic Report, said interest rates at the interbank oscillates between 10 and 80 per cent per annum, and that the local currency is now at N220 at the parallel market and still dropping.

    “The naira has been held artificially stable by administrative measures,” he said, pointing out that the currency is supported by reduced leakages from oil and revenue management, while capital inflows have shrunk to as low as $2.6 billion per quarter. Inflation has spiked seven out of nine months in 2015.

    The economist said administrative measures are temporary and unsustainable and cannot guarantee long term conservation of, or accretion in reserves.

     

  • ‘Save us from death trap’

    ‘Save us from death trap’

    There was pandemonium at the University of Benin (UNIBEN), following the knocking down of two students by a security patrol vehicle on Ugbowo-Lagos highway. The death of one of the students, Rita Halim Awele, led to a protest by students to draw attention to over-speeding on the highway. EDDY UWOGHIREN (300-Level Medicine and Surgery), EZEKIEL EFEOBHOKHAN (400-Level Pharmacy), SUNNY IBEH (300-Level History) and RICHARD ENAKE (200-Level International Studies and Diplomacy) report.

    The frequent loss of lives to over-speeding of vehicles on the Ugbowo-Lagos Highway has renewed the call for the introduction of speed breakers on the highway. Students of the University of Benin (UNIBEN) whose campus is on the highway are not left out.

    After a vehicle allegedly belonging to the Nigerian Army crushed two students on the highway penultimate Sunday, the students besieged the busy road they now derisively tagged “death trap” in protest, drawing attention of authorities to their plight.

    Rita Halim Awele and Esther Efe, both 200-Level Philosophy students, were knocked down in front of a female hostel by a security vehicle marked “Thunderstorm Patrol 28” at 10:15am. The victims, it was gathered, were crossing the highway when they were hit.

    The late Rita
    The late Rita

    After the incident, Nosahkare Ovie, an eyewitness, said the victims were rushed to St. Phenomena Hospital where Rita gave up the ghost.

    CAMPUSLIFE gathered that doctors are still battling to save the other victim’s life at the Intensive Care Unit of the University of Benin Teaching Hospital.

    The university was thrown into confusion, after the incident. Irked by the death of their colleague, members of the Students Union Government (SUG) and National Association of Nigerian Students (NANS) led students to the expressway to register their grievances.

    The students, numbering about 1,000, blocked the highway at 6:30am on Monday, last week, to protest. They remained on the road till 1pm, chanting solidarity songs. They gave the school management and the government seven days to meet their demands, which include construction of speed breakers or a pedestrian bridge infront of their school gate, compensation for the bereaved family and funding of the late Rita’s burial.

    Students bemoaned what they called the inability of the school management to prevent accidents in front of the school gate, saying many lives had been lost on the same spot.

    Godstime Ogbonor, a medical student, said the frequent accidents on the road should have prompted the government to erect a bridge on the highway. Since it is a highway, Godstime said the road does not need speed breakers but pedestrian bridges.

    Uche Emeka, a 400-Level Medical Biochemistry student, said vehicles plying the road must consider the lives of students, urging the school management to take action that would stop accidents in front of the school gate.

    He said: “It is sad that we lost such a promising student to the cold hand of death. I felt bad when I learnt the accident occurred at the school gate. No student is happy over this and we are pleading with the school management to take actions that will ensure accidents do not happen again at the school gate.”

    The SUG President, Raymond Omoregbe, described the accident as unfortunate and saddening. He said it was time for the school management to liaise with the government to find a lasting solution to the problem.

    The Faculty of Arts Students’ Association (FASA) President, Darlington Omonigho, described the late Rita’s death as regrettable.

    Chukwujioke Owelle, the late Rita’s classmate, also described her as nice and friendly. “She was good and friendly. It is sad that she fell victim to such untimely death,” he said.

    The spokesman of 4 Brigade of the Army, Captain Johan Unukhulu, said investigation had commenced to substantiate the involvement of the security vehicle. He said efforts had been made to reach out to the family of the victim.

    On Tuesday, a candlelight procession was held in honour of the late Rita in the school.

     

  • Save Our Soul to IGP Arase

    SIR: I write on behalf of the retrenched officers of the Oyo State command of the Nigeria Police. We were retrenched on the ground of age in January 2007 during the regime of ex-president, Chief Olusegun Obasanjo and former Inspector General of Police, Sunday Ehindero. The retrenchment cut across all federal parastatals, and paramilitary organizations.

    Then, the Federal Government ordered payment of entitlements to every affected person in the exercise. This was duly observed in every parastatal and paramilitary organization – excluding the Nigeria Police. The reason given by the authorities of the Nigeria Police was that the affected would be soon be called back to service.

    Between 2008 and 2010, few officers (rank and file) were called back to service while the rest were left out because they had no godfathers.

    When all our hopes to be called back to service throughout 2010 to 2012 became fruitless, we decided to pursue our entitlements, so that our service for years would not be zero.

    In May2014, a signal came from the Police headquarters Abuja to state headquarters that we should submit all necessary documents including our bank account numbers and pay slips to facilitate the payment of our entitlements. We complied with the instructions and were assured of payment into our various bank accounts before the end of year 2014.

    To our dismay, we have not received anything and not even heard about the payment till date.

    We are appealing to the Federal Government and the National Assembly to call on the Police authority, to release our entitlements even though some of our colleagues have died while waiting.

     

    • Adebiyi Ayoade,
  • ‘Save my child’s life’

    ‘Save my child’s life’

    A 50-year-old helpless father, Isiaka Yusuf, has cried out to kind-hearted Nigerians to assist him in rescuing his ailing son from imminent death.

    Yusuf visited the Lagos Headquarters of The Nation last Friday, seeking help for the five-and-a-half-year-old child, Kehinde Abdur-Raheem Yusuf, who needs N625,000 for a corrective surgery at the University College hospital (UCH), Ibadan, the Oyo State capital.

    “I have been running to every direction without any hope and I don’t want this boy to die because he has suffered a lot. I can only look up to God through public-spirited Nigerians,” Yusuf, who resides on Kilometer 2, Iseyin Road, Moniya, Ibadan, said.

    Displaying the boy’s medical records, he added: “My son has an unusually big head – bigger than his entire body as a result of which he could not sit, walk or control his head. His ailment, known as hydrocephalus in medical parlance, started when he was just six months old. Then, he had malaria and a doctor passed a drip through his head. Two weeks after, his head started growing more than his entire body. Since then, we have taken him to about 10 different private, traditional and General Hospitals before we were then referred to the UCH in June 2011. At the UCH, he has undergone tests and now another surgery is being contemplated to save his life.”

    He said donations could be forwarded to a GTBank account, 0151945965, which was opened under the name: Abdur-Raheem Kehinde Yusuf. “My contact number is 08032854784,” he said.

  • Ajapa teaches children to save

    Ajapa teaches children to save

    In an ambience of entertainment and fun, school kids are being taught the benefits of saving, using the persona of Ajapa, the tortoise famed in African folklore for making mischief. Only, this time around, Ajapa is up to some good. Under the aegis of Ajapa World, a theatre group, the famous tortoise is bringing financial literacy to children.

    This forms part of the partnership between children’s theatre group, Ajapa World and the Universal Basic Education Board (SUBEB) in Lagos State.

    At a brief ceremony held at the SUBEB premises in Maryland, Ikeja, Monday, President of Ajapa World, Akin Braithwaite said that Ajapa World, under its new body, Ajapa Financial Literacy Club, intends to teach the child how to earn money.

    “The goal of Ajapa Financial Literacy Club is to develop children and youth into productive economic citizens at an early age so that they can be contributors to the growth and wellbeing of society and not grow up into dependent beggarly adults. The setting up of the club comes at an auspicious period when financial inclusion is getting greater attention across the world,” he said.

    Braithwaite added that Ajapa World is set to roll out the club to over 1,000 public primary schools in the state. “Work has begun earnest with the training of 25 teachers in the five selected pilot schools chosen from five local government areas. During a one week period, 300 children have so far been inducted into the club,” he added.

    Mrs Gbolahan Khadijat Daudu, the Executive Chairman of SUBEB in Lagos State, said that the whole essence of the programme being initiated by Ajapa World is to create the awareness in pupils, the young children to learn how to save, for the rainy day.

    “Essentially, once they can imbibe such trait, right from their young age, they would be able to take care of themselves without being dependent on their parents. They would be able to fend for themselves and it makes the world easier for everybody. The partnership with SUBEB is such that we are allowing them to pass this initiative to introduce this initiative into our schools,” she said.

    Established in 200, Ajapa World is about improving children’s lives through edu-tainment. Ajapa is a wise tortoise who gets into a series of mischievous scenarios but uses his wit to get out of them. The Tortoise is a well-known folk hero in West African folklore.