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Tag: Soludo

  • Biafra ‘cabinet’: DSS puts Soludo, Utomi, Gana, others under watch

    Biafra ‘cabinet’: DSS puts Soludo, Utomi, Gana, others under watch

    There were strong indications last night that the Department of State Services (DSS) was planning to invite three ex-ministers and some prominent Nigerians for questioning, following their announcement by a secessionist organisation, Biafra Zionist Federation (BZF) as cabinet members.

    The Federal Government was shocked that none of the people the pro-Biafra group appointed as ministers had reacted more than 72 hours after their names were announced.

    The BZF had on Monday announced the formation of an interim government for the Republic of Biafra, with one Barrister Benjamin Onwuka as the President.

    Some of the people listed as ministers at a press conference the group held in Enugu include former Minister of Power, Prof Barth Nnaji; former Minister of Information Prof Jerry Gana and another former Information Minister, Labaran Maku.

    The pro-Biafra organisation also named other key cabinet members to include Prof. Pat Utomi as Foreign Affairs Minister; Prof. Chukwuma Soludo as governor of the Central Bank of Biafra (CBB); Mrs. Aruma Oteh as Minister of Finance and a former Personal Secretary to the late former Biafran leader Dim Chukwuemeka Odumegwu Ojukwu as Minister of Petroleum.

    Other appointees are ace broadcaster, Amarachi Ubani as Minister of Information; Ohanaeze President, Chief Nnia Nwodo as Ambassador to the US; Gana as Minister of Transport; Maku as Aviation Minister; a lecturer at the University of Nigeria, Nsukka (UNN), Mrs. Mary Okafor as Minister of Trade and Industry; Benny Lar as Secretary to the Government of the Republic; Gabriel Oluwole Osagie as Minister of Education; Nnaji as Minister of Energy and Philip Effiong Jnr. As Minister of Health.

    The Nation investigation revealed that the Federal Government was disturbed that none of those named as cabinet members has disowned the secessionist movement more than 72 hours after.

    A top intelligence source, who spoke in confidence with our correspondent in Abuja, said: “Respected citizens such as these should not in any way be associated with acts of treason. Assuming that it was inadvertently or mischievously done, they have a duty to themselves and the nation to renounce such association.

    “In this particular instance, we are worried about the deafening silence on the part of these respected citizens. What do they lose by renouncing their listing by the secessionists?”

    He, however, said the DSS would wait for a “respectable period” before moving against any of them.

    The source said: “If the silence persists, we reserve the right to read meaning into it, and that could lead to the law taking its course.”

    Findings made at press time revealed that the activities of BZF had been placed under surveillance.

    “We will not condone any act of treason anymore in this country. We have had enough of secessionist agitations under any guise.

    “The BZF is under investigation and surveillance by the DSS and other intelligence agencies,” another source added.

    Some of the affected people contacted last night reacted in different ways.

    Maku said: “Somebody called that I have been appointed a minister of Biafra. How can somebody associate me with a micro in Nigeria? What does that tell you?

    “It means there is confusion and desperation among the youths. You need to bring the youths together and reassure them that they have a future.”

    A media adviser, Mr. Ike Abonyi, who spoke on behalf of the President of Ohanaeze Ndigbo, Chief Nnia Nwodo, said: “The President of Ohanaeze is presently engrossed in tackling challenges facing Ndigbo. He will not be involved in every issue. He will not give credence to any group.

    Disowning the BZF, the Chairman of the House of Representatives Committee on Science and Technology, Hon. Beni Lar, said: “It has come to my notice that several media outlets published my name as being part of a Biafran declaration, to include me as a cabinet member. I dissociate myself with any such move or movement.

    “As a true democrat, I have repeatedly granted interviews on the need for Nigeria to remain one, indivisible country. Long live the Federal Republic of Nigeria.”

    Asked to react to his inclusion in the cabinet of the Republic of Biafra, Prof. Gana, who said he was in transit, said: “I am on my way back, I will talk to you later. I will call you back.ý”

    Efforts to speak with Utomi was unsuccessful as calls and text message to his mobile number were neither answered nor replied.

  • Jonathan govt’s bad spending habit caused recession, says ex-CBN boss Soludo

    A former governor of the Central Bank of Nigeria (CBN), Prof Chukwuma Soludo, has attributed the prevailing economic woes facing Nigeria to the wrong choice of economic policies by the government.

    Soludo disclosed this while speaking at an international conference organised by the Department of Business Administration of the Nnamdi Azikiwe University (UNIZIK) in Awka, Anambra State.

    The theme was: Managing a recessionary economy: Options for Nigeria.

    The major cause of the recession the country is facing, Soludo said, is as a result of what he called “bad habit of borrowing” at a period the country was in boom.

    He blamed the past administration for plunging the economy into a glitch, saying the government did not act on time to save the situation.

    Soludo, a professor of Econometrics, criticised the Treasury Single Account (TSA) policy, which, he said, stifled the economy further because it channelled public sector funds to the CBN.

    He expressed optimism on the possibility of the country coming out of the recession. He said managing a recessionary economy did not require rocket science, noting that Nigeria could overcome the current economic setback faster if the government put in place appropriate policies.

    He said: “Huge spending by government was one of the ways of solving the economic problem, but two wrong steps by the current government ruined that opportunity. They brought in the TSA and channelled funds into one account that did not allow spending. They also fixed the price of foreign exchange. These are things you do not do when a country is in economic crisis.”

    The former CBN boss stressed that the recession was sown by the last administration but became obvious one year into the tenure of the present government. He said it would not have degenerated but for the inability of policymakers to rise to the challenge.

    He said the recession happened because the Goodluck Jonathan administration failed to save earnings from crude oil sale when there was unprecedented boom in oil prices.

    He said: “Poor ideas transcended over superior ideas, and we went into recession which was slightly avoidable. That is why academics must be alive to their responsibility of nudging us to reality. If you borrow at a time of boom, what will you do in a time of lack? Even my grandmother in the village knows this.

    “At the same time, when we had boom, we had unprecedented unemployment. The problem with Nigeria’s policymakers is that once oil goes up, we take it that it will remain so, and we continue to spend. But once there is a shock and oil prices go down, we just think it is temporary and we start borrowing. Nigeria can be fixed, and what it takes to fix Nigeria is not rocket science.”

    Soludo hailed the government’s diversification policy, saying it would save the economy beyond oil and also save it from shocks induced by vagaries of the international oil market.

    He also called for fiscal federalism to help the states and local governments live beyond “running to the centre for their sustainability”.

    The Vice-Chancellor (VC), Prof Joseph Ahaneku, said the theme captured the economic challenges confronting the country, which, he said, built up through decades of sub-optimal management of the material and human resources.

    The VC said the conference was incisive in analysing the country’s economic woes and formulating the possible ways forward. He praised the department for organising the event in line with the school’s tradition of generating academic discourses to proffer solutions to issues of national and international concern.

  • Jonathan govt’s bad spending habit caused recession,says ex-CBN boss Soludo

    ‘Huge spending by government was one of the ways of solving the economic problem, but two wrong steps by the  government ruined that opportunity. They brought in the TSA and channelled funds into one account that did not allow spending’

    A former governor of the Central Bank of Nigeria (CBN), Prof Chukwuma Soludo, has attributed the prevailing economic woes facing Nigeria to the wrong choice of economic policies by the government.

    Soludo disclosed this while speaking at an international conference organised by the Department of Business Administration of the Nnamdi Azikiwe University (UNIZIK) in Awka, Anambra State.

    The theme was: Managing a recessionary economy: Options for Nigeria.

    The major cause of the recession the country is facing, Soludo said, is as a result of what he called “bad habit of borrowing” at a period the country was in boom.

    He blamed the past administration for plunging the economy into a glitch, saying the government did not act on time to save the situation.

    Soludo, a professor of Econometrics, criticised the Treasury Single Account (TSA) policy, which, he said, stifled the economy further because it channelled public sector funds to the CBN.

    He expressed optimism on the possibility of the country coming out of the recession. He said managing a recessionary economy did not require rocket science, noting that Nigeria could overcome the current economic setback faster if the government put in place appropriate policies.

    He said: “Huge spending by government was one of the ways of solving the economic problem, but two wrong steps by the current government ruined that opportunity. They brought in the TSA and channelled funds into one account that did not allow spending. They also fixed the price of foreign exchange. These are things you do not do when a country is in economic crisis.”

    The former CBN boss stressed that the recession was sown by the last administration but became obvious one year into the tenure of the present government. He said it would not have degenerated but for the inability of policymakers to rise to the challenge.

    He said the recession happened because the Goodluck Jonathan administration failed to save earnings from crude oil sale when there was unprecedented boom in oil prices.

    He said: “Poor ideas transcended over superior ideas, and we went into recession which was slightly avoidable. That is why academics must be alive to their responsibility of nudging us to reality. If you borrow at a time of boom, what will you do in a time of lack? Even my grandmother in the village knows this.

    “At the same time, when we had boom, we had unprecedented unemployment. The problem with Nigeria’s policymakers is that once oil goes up, we take it that it will remain so, and we continue to spend. But once there is a shock and oil prices go down, we just think it is temporary and we start borrowing. Nigeria can be fixed, and what it takes to fix Nigeria is not rocket science.”

    Soludo hailed the government’s diversification policy, saying it would save the economy beyond oil and also save it from shocks induced by vagaries of the international oil market.

    He also called for fiscal federalism to help the states and local governments live beyond “running to the centre for their sustainability”.

    The Vice-Chancellor (VC), Prof Joseph Ahaneku, said the theme captured the economic challenges confronting the country, which, he said, built up through decades of sub-optimal management of the material and human resources.

    The VC said the conference was incisive in analysing the country’s economic woes and formulating the possible ways forward. He praised the department for organising the event in line with the school’s tradition of generating academic discourses to proffer solutions to issues of national and international concern.

  • Why Nigeria is in recession, by Soludo

    Why Nigeria is in recession, by Soludo

    Former Central Bank of Nigeria (CBN) Governor, Prof. Chukwma Soludo, has blamed ‘unprecedented borrowing’ during ‘unprecedented boom in oil prices’ by the last administration as one of the reasons the nation slipped into avoidable economic recession.

    Soludo also lamented that instead of spending money to oil the engine of the economy, the Treasury Single Account (TSA) implemented by the Federal Goverment locked up huge funds that should runiing the economy.

    He said reliance on oil has done more harm than good to to the country.

    He said the current economic crisis being witnessed in the country was avoidable, adding that poor ideas by the country’s policy makers caused led to the problem.

    Delivering a paper yesterday at the Nnamdi Azikiwe University Awka, Anambra State, at the 2017 International Conference of the Department of Business Administration, lead presenter on: Managing a Recessed Economy, Soludo said Nigeria slipped into recession barely a year after the current administration took over power due to the inability of the country’s policy makers to rise to the challenge.

    Soludo said: “Poor ideas transcended over superior ideas, and we went into recession which was slightly avoidable. That is why academics must be alive to their responsibility of nudging us to reality.”

    He said the foundation for the recession was laid by the previous administration which according to him, borrowed to fund  recurrent expenditure at a time when oil prices were as high as over $100 a barrel.

    He stated that part of the problem was because the country failed to save funds at a time when there was unprecedented boom in oil prices, but rather engaged in unprecedented borrowing.

    He said: “If you borrow at a time of boom, what will you do in time of lack? Even my grandmother in the village knows this. At the same time when we had boom, we had unprecedented unemployment.

    “The problem with Nigeria’s successive policy makers is that once oil goes up, we take it that it will remain so, and we continue to spend. But once there is a shock and oil goes down, we just think it is temporary and we start borrowing.

    “Nigeria can be fixed, and what it needs to fix Nigeria is not rocket science, but we do not have the will to fix her.

    “They brought in the TSA and channeled funds into one account that did not allow spending, and they also fixed the price of foreign exchange. These are things you do not do.”

    He said the only way to put Nigeria back on the right track is to think beyond oil.

    Another way of tackling the challenges facing the country  was to unbundle Abuja and trim down the exclusive list.

    “We do not have to be running to Abuja for everything. That was why I was surprised when some people canvassed that local governments should be going to Abuja to take their allocations directly,” he said.

  • Soludo: Wiser after the fact?

    Soludo: Wiser after the fact?

    The current situation of more than 10 percent premium in the parallel market rates compared to the official rates is simply unacceptable. While we hope that some of the structural constraints (especially relating to the trade policy and practices) will be eliminated over time, the CBN has resolved to take some concrete steps to further liberalize the market to ensure greater efficiency of the market and drastic reduction in the premium between the official/interbank rates under WDAS, and the Bureau de change/parallel market rates. Our strategy is to ensure increased supply of Forex to all markets and also reduce the demand pressure in the parallel market by reviewing or eliminating many of the restrictions imposed on users of the official market. This will make many of the hitherto ineligible transactions in the official market eligible, thereby reducing the pressure on the parallel market” Chukwuma Charles Soludo, March 27, 2006.

    “Nigeria must get out of multiple exchange rates and we must eliminate the premium, get it back on track at a competitive exchange rate regime. The uncertainty that is created by that is so enormous; and with the oil price rising and with the increase in oil earnings, this is the time to take bold steps and do the needful…We have done it before and it is just going back to it. If it (the template) is not broken, why mend it? Get back and eliminate the multiple exchange rate regime, eliminate the premium, or at least significantly reduce it to not more than between three to maximum of five per cent premium between the parallel and official exchange rates”.

    That was Chukwuma Charles Soludo speaking in Lagos the other day as chairman of the Economic Discourse organised by the Institute of Chartered Accountants of Nigeria (ICAN).

    Now, if we excuse his trademark conceitedness as indeed his dig at Godwin Emefiele’s CBN, not so his pretence at being oblivious to the completely altered canvas in which he expects his worthy successor to hatch his lifelong fixation.

    From being a leader who pushed admirably to get a rather difficult job done, to one apparently bitten by the Nigerian bug to the extent that he now sounds more like an emergency crusader with an undisclosed agenda, (just imagine the hubris regarding the claim about so-called magical template or the veiled attempt to rewrite a most recent history!), the wheel has turned full cycle for our man. How about an individual that has left the stage but would not stop at writing own report card but would rather cart away the trophy before the game is called?
    Talk about our elite’s dalliance with hubris!

    Those are not the only things wrong with the Soludo message.

    As far as I can see – everything – is wrong!

    It starts with the disingenuous attempt to frame the issue (about multiple forex rates – that is) as something that either started yesterday or a relapse of a disease long cured when in fact it is the same stubborn disease that has not only defied cure, but continues to present in different forms depending on the vitality of the economy-host! Was that not why the ex-CBN governor could frame it as a problem in 2006?

    How about the so-called Soludo magic template – which if it existed at all, it was at best an accidental or chance occurrence? One only needs to recall that oil was price doing reasonably well (I think around $90 per barrel) in the Soludo years. Also, production held fairly steady at some two million barrels per day then – the reason we could build an impressive war-chest of $60 billion and with it a guarantee of 30-odd months of import cover.

    Remember, there was just about enough forex to import anything from carpets to tooth-picks with our hordes of parallel market operators left to scramble for pickings in what was at best a marginal market. Yes, the Soludo magic worked at some point; the rates appeared to have converged at one point (I can’t exactly recall when now).

    Today, we can look back in time to ask – why was it not sustained; or better still – sustainable?

    The answer has now emerged: like now, the apex bank as the main forex supplier could not satisfy the demand. The chief factor, as it now appears, is the degree to which the rulers made fetish of forex. Then, the dollar was important – but only to a point. Today, it is everything. With the economy virtually dollarised and with billions of hoarded naira – mostly stolen – chasing fewer and fewer international currencies no thanks to the slump in oil prices, a thousand and one CBNs could never have met the local demand. This – coupled with the criminal complicity of the banks – is what gives the black market the wing to fly. It explains why the naira continues to respond in fits and starts despite the apex bank’s activism; it explains the current scepticism about its sustainability. This is what – amazingly – Soludo pretend not to see!

    The truth of course is that the Soludo message represents a barely disguised attempt at reinforcing the age-long fetish about forex and the phantom ‘allocative’ efficiency of the so-called market (packaged as liberalisation) even when supply is finite and demand indeterminable. This is where the pretence that the malaise could be cured, not by taking on the abusers of the forex trade, but by abandoning the very institutional controls designed to bring some order, comes across as curious.

    When are we going to stop making the business of forex an end itself as against being a means to an end? Shouldn’t we be talking more now about putting in place enduring policies to get our factories revving full throttle as against the current focus on forex management?

    Does the present course not obfuscate the real debate about what ails the Nigerian economy? Isn’t the old but familiar course responsible for the current situation in which the economy lack the vital appendages on which to stand, one so utterly dependent and hopelessly vegetative that it currently survives on life support offered by petro-dollars?

    Imagine that we are already beginning to act like the drunk that has learnt nothing and forgotten nothing. Thanks to the steady improvement in oil prices and hence the reserves, there are already pressures on the prodigal country to go back to the old paths –again. Yes, the chants are becoming louder as to why we must go back to the ruinous path of conspicuous consumption; to bring back the 41-odd banned items, to remove the very buffers that served us well in the difficult days; the humongous subsidies on those expensive vacations on the Riviera!
    As it was in the beginning, so shall it be….

  • Obiano, Soludo and Anambra State

    Chukwuma Charles Soludo was the guest lecturer in Awka during the 3rd Anniversary of the inception of the Willie Obiano Administration. The renowned economist’s magisterial presentation was laced with numerous economic, political and social nuggets, all of which boiled down to his unequivocal endorsement of Governor Willie Obiano for a second term of office. His views make sustained interrogation imperative. But, some background information is apposite.
    Professor Soludo is far from the first Anambra personage to endorse Governor Obiano’s bid for a second tenure as Governor of Anambra State. The impressive list contains such names as Dr. Chukwuemeka Ezeife, the first civilian governor of the new Anambra State; Dame Virgy Etiaba, a former Governor of Anambra State, and Chief Emeka Sibeudu, who was Deputy Governor to Mr. Peter Obi. Others include Senators Ben Ndi Obi, Annie Okonkwo and Emma Anosike, none of whom is of Governor Obiano’s ruling All Progressives Grand Alliance (APGA), as well as Dr. Oby Ezekwesili, the former Nigerian Education Minister. Elder statesmen like Chief Alex Ekwueme, a former Vice-President of Nigeria, and Chief Emeka Anyaoku, the former Commonwealth Secretary-General, have equally thrown their lot with Governor Obiano. Non-politicians like Dr. Cosmas Maduka, the versatile industrialist, and Chief Innocent Chukwuma of Innoson Car manufacturers have equally given Governor Obiano the thumbs up.
    Indeed, the support for an Obiano second term is gradually becoming a movement. It has gone beyond personalities and attracted the remarkable attention of groups that cut across socio-political, religious, and professional divides. In this category are to be found the Anambra North Peoples Assembly (ANPA); the Old Aguata Union (OAU); the Federation of Old Nnewi Division (FOND); the Anambra State Association of Town Unions (ASATU) and the Anambra State Markets Amalgamated Traders Association, (ASMATA).Yet, that is not all because the Anambra State branches of Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC); the Anambra State Traditional Rulers Council; the Traditional Prime Ministers Council, the Anambra State branch of Southeast Women of Substance and the United Anambra Youths Assembly have equally endorsed Governor Obiano to continue with his exemplary leadership.
    All the endorsements are held by one powerful bond – the fact that Governor Willie Obiano has acquitted himself creditably in the onerous responsibility of directing the affairs of Anambra State. In unison they sing the joyous song of his achievements: Obiano has made Anambra the safest state in the country. He has transformed the Awka capital territory from a provincial enclave to a worthy state capital. He has revolutionised agriculture, making Anambra a rice-producing state of note and a leader in dairy farming. He has sustained the prompt and regular payment of salaries, gratuities and pensions. He has displayed an uncommon sense of empathy for the sensibilities and sensitivities of Ndi Anambra. For these and many other reasons, they have taken the attitude that a second term is the appropriate reward for Obiano’s services to his people.
    Professor Soludo was even more pertinent in his Anniversary Lecture. Said he: “For Governor Obiano…this third anniversary must be time to thank God for His mercies – for survival and progress! Let the truth be told: in the context of Nigeria’s situation over the last three years, and in comparison with other states, or even in comparison with past governors in their first three years, Governor Obiano has without question done very well.” A logical question should follow the above assertion. How do you treat someone who has “done very well”? Of course, you ask them to continue with their good work.
    This was how Soludo put it: “So, why mend it if it is not broken? This is a time of crisis and you don’t change the General in the middle of a war, especially the General that has led you through successes in battles. We have learnt useful lessons from the past and must now forge new elite cohesion and consensus. Let Anambra export a rare form of statesmanship politics. Can we then implore most of the contestants to rather deploy the billions of Naira they would soon waste on the campaign trail into building medium scale industries in the state? That way, even the politicians would be adding to the burgeoning start-up companies, and creating high value-adding jobs! There will be vacancy at Government House after the next four years, and anyone can contest. In the meantime, the Working Willie as our chief servant can continue to serve and lead Anambra as a truly emerging start-up state, while we, the people, collectively support and drive the investment boom!”
    In joining patriotic Ndi Anambra to endorse Governor Obiano for a second term, Professor Soludo did not discount the hurdles along the way. Foremost among them is the contingency of unscrupulous politicians using the “Federal might” to negate the people’s choice: “Obviously, we expect candidates from other political parties to contest the election. That is their prerogative under a democracy. Of course, there are many reasons why people run for office. But the argument that Ndigbo or Ndi Anambra need to belong to PDP or APC in order to be “connected to the national grid” is a false argument. I once thought the same way. But evidence since 1999 has shown that there is no special advantage to any state government simply because the governor belongs to the same party as the President (except perhaps 10-30 persons that might be appointed to some federal positions). That is an elite talk, an elite game for the elite interest! Or perhaps some might join a political party so that the federal authorities might deploy the armed forces and INEC to write election results for them. It has nothing to do with the people and their welfare, period!”
    Without question, the greatest challenge facing Ndi Anambra today is how to thwart political charlatans who, in a bid to grab power, will seek to sow death and destruction where Governor Obiano has instituted peace and stability. How do the people ensure that the INEC, the Armed Forces, the Police and other security agencies are not deployed, against their oaths of office, to manipulate the November governorship ballot? If Ndi Anambra are allowed the free choice of who governs them; if external forces who give no damn whether Anambra is swallowed by hell fire or high waters, do not impose bloodshed and injustice on a peaceful people because of hunger for naked power, the thrust of Professor Soludo’s anniversary lecture will gain traction and Anambra State will be all the better for it.
    Soludo’s lecture was entitled Anambra: An Emerging Start-up State And Our Collective Challenge. Its central message is that Anambra’s affairs are currently in the hands of a dedicated and visionary Governor. The way Governor Obiano articulates his vision is this: APGA has been in power in Anambra State for 11 years. The party requires a new electoral mandate to consolidate on its legacy, and to replicate the economic miracles of the Asian Tigers and “Israel, Anglo-Americans, Indians and Chinese” of Soludo’s citation, who built virile economies over decades.

    •Iloegbunam is Governor Obiano’s Director of Media Relations

  • APC cautions Soludo on statement

    The All Progressives Congress (APC) in Anambra State has cautioned former Central Bank of Nigeria (CBN) Governor Prof Chukwuma Soludo on his statement about the November 18 governorship election in the state.

    The party said it did not expect the don to talk in such a manner.

    Soludo, on Friday, during alecture as part of Governor Willie Obiano’s third year anniversary, said there was no vacancy at the Government House.

    He told those angling for the position to have a rethink, declaring that the people were happy.

    Briefing reporters yesterday in Awka, an APC governorship aspirant, Barth Nwibe, said Soludo should allow the people decide.

    He said Soludo had made mistakes in the past, adding that he was not aware if the statement was part of such mistakes.

    Nwibe said he joined the race to reposition Anambra by bringing wealth back to the people.

    He debunked claims that APC had an anointed candidate.

  • Oshiomhole, Soludo clash over N8bn forex cash

    Oshiomhole, Soludo clash over N8bn forex cash

    It was a clash of the titans yesterday as the immediate past Governor of Edo State, Comrade Adams Oshiomhole, and ex-Central Bank of Nigeria (CBN) Governor, Professor Charles Soludo, exchanged words over alleged N8 billion proceeds from foreign exchange transactions.

    The duo were  guest speakers at the Vanguard Economic Discourse held in Lagos.

    Oshiomhole fired the first salvo when he accused Soludo of colluding with two unnamed banks to make N8 billion from the forex market in two days during his tenure as CBN boss.

    He claimed  that Soludo violated the forex rules by ensuring that two banks got huge forex allocations ahead of major naira devaluations.

    But Soludo would have none of that.

    He dismissed the allegation as a lie,insisting that  there was no such allocations to the banks as the lenders followed competitive bidding process.

    He said that the CBN under his tenure built massive foreign reserves, and had allowed the exchange rate to adjust to market forces demands.

    He said that Oshiomhole did not know the difference between devaluation and depreciation of the naira. He said  all the banks got equal chances during the bidding process.

    Earlier in his keynote address, Soludo had said the country has many challenges, calling for all hands to be on the deck to resolve them.

    “Nigeria economy is in a dire need of a rescue. The national budget is not working. We are still where we were since independence. Nigerians have been trusted to rescue the country. The continuous slide in oil prices and Niger Delta crisis are only a simple explanation of the ongoing economic problems. Nigeria seems to be moving in cycles since independence. Finally, the Federal Government has an economic recovery plan which is supposed to be government’s blueprint for rescuing the economy,” he said.

    “I want to commend the effort, to be fair, the government inherited very bad economy. The previous government had unprecedented rate of debt accumulation even at a time of unexpected oil boom. The previous government was even depleting our foreign reserves instead of doubling what it met. It could have more than doubled the reserves, if it grew it by just 50 per cent,” he added.

    Continuing, he said that when  President Muhammadu Buhari came to power, inflation was at nine per cent and has risen to about 19 per cent; exchange rate dropped from N197/ N205 to dollar  to N305/465 to dollar in the parallel market; unemployment rose from 7.5  per cent to 14 per cent while capital market capitalisation, business confidence and ease of doing business have also worsened.

    Soludo said that foreign reserves have been depleted, current account balance negative, wages are declining, half-hearted commitment to deregulation of the petroleum industry.

    “The domestic currency style, the economy is in recession, but in dollar terms, the economy has suffered a massive compression. The Gross Domestic Product has shrunk from $575 billion when the government came to power to $357 billion/$232 billion for parallel market rates. The value of the GDP has dropped by more than half. It will be a miracle for the government to return the GDP value to the level it met it,” he said.

    Soludo, however, commended the government for plugging the loopholes in the economy. He said that government is inconsistent with plan for economic growth. The governments keep blaming themselves, and are busy chasing rats and losing the cows.

    “Nigeria has refused to learn from the history from the booms and bursts cycles. Every government since 1970 has pursued diversification, but failed to pull it through,” he said.

    Also speaking, Solid Minerals Development Minister  Kayode Fayemi, said the ugly trend in the economy started long ago, and that the present government cannot perform magic in fixing the economy.

    “We are not going to perform magic in addressing the challenges facing the economy. But the people may not want to hear this. Our tax base is one of the lowest in Africa,” he said.

    Oshiomhole alleged that Soludo priced money out of the reach of investors and had no reason to castigate government over present economic crisis.

    “We need to raise the purchasing power of the average Nigerian. The problem with the public sector is not wages but fraud,” Oshiomhole said.

    Former Managing Director, Diamond Bank Plc, Alex Otti, said it was wrong to bar 41 items from accessing forex from the official market because the importers will still find ways to fund the products.

    Managing Director, Financial Derivatives Company Limited, Bismark Rewane, called for reform of the forex market to save the economy from collapse. He also called for the government to fix the lectoral process for the economy to recover.

  • Oshiomhole, Soludo clash over N8b forex cash

    Oshiomhole, Soludo clash over N8b forex cash

    The immediate past Governor of Edo State, Adams Oshiomhole and former Central Bank of Nigeria (CBN) Governor, Prof. Charles Soludo, on Friday exchanged words over alleged N8 billion proceeds from foreign exchange transactions.

    Speaking at the Vanguard Economic Discourse held in Lagos, Oshiomhole had accused Soludo of allegedly colluding with two unnamed banks to make N8 billion from the forex market in two days during his tenure as CBN boss.

    He said the ex-CBN governor violated the forex rules by ensuring that two banks got huge forex allocations ahead of major naira devaluations.

    Also, the Minister of Solid Minerals Development, Kayode Fayemi, said the ugly trend in the economy started long ago, and that the present government cannot perform magic in fixing the economy.

    “We are not going to perform magic in addressing the challenges facing the economy. But the people may not want to hear this. Our tax base is one of the lowest in Africa,” he said.

    Oshiomhole alleged that Soludo priced money out of the reach of investors and had no reason to castigate government over present economic crisis.

    “We need to raise the purchasing power of the average Nigerian. The problem with the public sector is not wages but fraud,” Oshiomhole said.

    But Soludo refuted the allegations, saying that Oshiomhole lied against him.

    He said there were no such allocations to the banks as the lenders followed competitive bidding process.

    He said the CBN under his tenure built massive foreign reserves and had allowed the exchange rate to adjust to market forces’ demands.

    He said the ex- Edo governor does not know the difference between devaluation and depreciation of the naira.

    He said at the time of the bid, all the banks got equal chances during the bidding process.

    Soludo had during his keynote address, said the country has many challenges, calling for all hands to be on deck to resolve them.

    He said, “Nigeria economy is in a dire need of a rescue. The national budget is not working. We are still where we were since independence. Nigerians have been trusted to rescue the country. The continuous slide in oil prices and Niger Delta crisis is only a simple explanation of the ongoing economic problems. Nigeria seems to be moving in cycles since independence. Finally the Federal Government has an economic recovery plan, which is supposed to be government’s blueprint for rescuing the economy.

    “I want to commend the effort, to be fair, the government inherited a very bad economy. The previous government had unprecedented rate of debt accumulation even at a time of unexpected oil boom. The previous government was even depleting our foreign reserves instead of doubling what it met. It could have more than doubled the reserves if it grew it by just 50 per cent.”

     

  • Soludo: Fed Govt has made things worse

    Soludo: Fed Govt has made things worse

    Former Central Bank of Nigeria (CBN) Governor Prof. Chukwuma Soludo has said even though the Muhammadu Buhari administration met a bad economy, it has made matters worse.

    Soludo noted that the All Progressives Congress (APC) government promised to restructure the country but has regretfully jettisoned the idea.

    “Politicians are always full of propaganda and falsehood but Nigeria will not be rescued by looking at government alone, only citizens united will come to the rescue,” he said.

    The ex-CBN governor said only Nigerians can save the country from the “massive compression” that the economy is in.

    “Until citizens hold them to jugular and ask them to deliver on their promise, Nigeria will continue to drift without united citizens action,” he said.

    Soludo said  everybody blames the leadership for every wrong while the citizens overlook their obligation to remedy bad situations.

    He added that citizens can save the country through a new Nigeria.

    The ex-CBN governor spoke in Enugu yesterday at the African Heritage Institution Policy debate, the Big Ideas podium.

    Other speakers include former Cross River State Governor Donald Duke, member, Presidential Economic Advisory Board, Prof. Akpan Ekpo and former presidential Chief Economic Adviser and Director of Institute for Development Studies in the University of Nigeria, Prof. Osita Ogbu.

    Soludo said: “Nigeria is a fragile state with failing economy and everybody wants leaders to do this or that but what do we do ourselves?

    “By 2005, indices indicated Nigeria was in 54th position and we said we should do better but today we are 13th alongside countries like Afghanistan.

    “This is serious and it won’t be a tea party to get out of it. Nigeria is in recession in Naira terms but in massive compression in terms of US dollar.

    “Recession is a small thing and it would be a miracle if in the next eight years, this government can return dollar to the rate it met it.”

    The economist stated that it was a big luxury for people to just mind their own businesses in a falling economy.

    “We will get the leadership that we work for, that we demand for.

    “If only the politicians can implement 20 per cent of their manifesto, what they promised in their campaigns, the country will change.

    “We must all resolve to get our voices heard. Peaceful agitation must be tolerated because they call for our attention for perfection upon which we move Nigeria forward.”