Tag: emefiele

  • Nigeria expecting 12 fighter jets from U.S. in July – Emefiele

    Nigeria expecting 12 fighter jets from U.S. in July – Emefiele

    Nigeria is expecting 12 Tucano fighter planes from the United States as part of efforts towards fighting insecurity in the country.

    The Central Bank of Nigeria (CBN) Governor, Godwin Emefiele said this on Tuesday while fielding questions at the end of a two-day Monetary Policy Committee meeting in Abuja.

    “About three years ago, the Federal Government and the United States signed a pact that resulted in a government to government acquisition of military equipment out of which we are expecting twelve Tucano aircraft or fighter planes that will help combat insecurity,” the apex bank boss explained during the event where he also expressed optimism that the country will overcome its security challenges

    “I am aware that six of them are coming to the country in the months of July and August.”

    The CBN governor’s comment corroborated a statement earlier made by the presidency on the arrival of the Tucano aircraft.

    “Nigerian pilots and maintenance personnel are training on these planes. Currently, the construction is ongoing, which will house the aircraft,” Mr Garba Shehu, one of the President’s spokespersons tweeted in March, three years after the Federal Government (February 2018) confirmed that it had placed an order for 12 Super Tucano aircraft at a cost of $496 million.

    Emefiele, lamenting Nigeria’s growing security challenges, said the economy would be greatly affected if the menace is not tackled.

    “If you expect an economy to grow, the level of insecurity must be low because if there is a high level of insecurity, then the economy will suffer,” the CBN governor added, urging bandits and other criminal elements to embrace peace and key into government’s economic policies.

    “I would like to appeal to our brothers, who decide that they want to live in bushes and forests that they should please, begin to retreat, drop their arms and come and embrace Anchor Borrowers’ Programme,” he said.

    “If they do so, it will help them but if they choose not to do so, they will be confronted by the security as this battle continues.”

  • Emefiele urges bandits to drop arms, embrace Anchor Borrowers’ Programme

    Emefiele urges bandits to drop arms, embrace Anchor Borrowers’ Programme

    The Central Bank of Nigeria (CBN) Governor, Godwin Emefiele, has urged bandits and those living in the bushes to drop their arms and embrace the apex bank’s Anchor Borrowers’ Programme.

    He made this remark when responding to questions at the Monetary Policy Committee Meeting held on Tuesday, May 25th 2021.

    In perhaps an off the cuff remark, in addressing the role of insecurity in driving economic growth, Godwin Emefiele explained that while the apex bank was doing all it could to stimulate growth, insecurity remained a challenge, and thus chided bandits to drop arms and partake in the government’s agriculture transformation programs such as the ancho borrowers.

    This suggests this is part of the CBN’s effort in assisting governments at different levels to tackle the rising insecurity across the country.

    Emefiele said that the committee noted with great concern the implications of the current high rate of insecurity on agriculture, food prices, and the economy as a whole, calling on the Federal Government to quickly sort out the security challenges around the country in order to successfully tackle inflation.

    According to the CBN, APB which was launched by President Muhammadu Buhari (GCFR) on November 17, 2015, is “intended to create a linkage between anchor companies involved in the processing and smallholder farmers (SHFs) of the required key agricultural commodities. The programme thrust of the ABP is provision of farm inputs in kind and cash (for farm labour) to small holder farmers to boost production of these commodities, stabilize inputs supply to agro processors and address the country’s negative balance of payments on food. At harvest, the SHF supplies his/her produce to the Agro-processor (Anchor) who pays the cash equivalent to the farmer’s account.”

    Recently, the CBN reported that 2,923,937 farmers have benefitted from the Programme. In addition, 3,647,643 hectares have been cultivated by farmers under the Programme while 21 commodity sectors benefited from the program.

    In the 2020 wet season Banks under the CBN-RIFAN partnership financed 221,450 farmers for the cultivation of 221,450 hectares in 32 States. Despite all this, the Agriculture sector grew by 2.28% in Q1 2021 compared to the 3.42% recorded in Q4 2020.

    Emefiele believes insecurity has been a major challenge in attaining the sort of growth expected from the trillions in stimulus already injected into the economy.

  • VIDEO: ‘Printing money is lending money’, Emefiele confirms Obaseki’s N60bn claim

    VIDEO: ‘Printing money is lending money’, Emefiele confirms Obaseki’s N60bn claim

    Central Bank of Nigeria (CBN) Governor, Godwin Emefiele, has said the concept of printing money to support states is not new and that ‘people should stop adding colouration to it’.

    And in a twist to the tale, Emefiele announced that states government must begin to pay back the Budget Support Loans given to them by the Federal Government since they are accusing the federal government of printing money.

    He stated this while reacting to a statement by Edo State Governor , Godwin Obaseki, that the Federal Government printed money to the tune of N60 billion to augment the March revenue shared by the Federation Account Allocation Committee (FAAC).

    TheNewsGuru.com, TNG reports that the Minister of Finance, Zainab Ahmed, on Wednesday during Federal Executive Council (FEC) Meeting described Obaseki’s claims as “sad” and “untrue”.

    However, the governor in a swift reaction countered the minister saying time will judge who is speaking the truth between him and the federal government.

    But the apex bank governor explained that the bank’s interventions are meant to address the grim economic outlook because “Nigeria is unfortunately in a very bad situation,” He added: “If you understand the concept of printing of money, it is about lending money”.

    “That is our job. To print is about lending money. So, there is no need of putting all the controversy about printing of money as if we go into the factory, print the naira and start distributing on the streets.

    “It’s very inappropriate for people to give colouration to printing of money as if it’s some foreign words coming from the sky”.

    Giving further clarification, Emefiele said “it’s important for me to put it this way that in 2015/16, the kind of situation we found ourselves in, we did provide a budget support facility to all the states of this country”.

    “That loan is still unpaid up till now. We are going to insist on them paying back those monies since they’re accusing us of giving them loans”.

    In July 2015, President Muhammadu Buhari approved $2.1billion as intervention package to help bankrupt states pay salaries and offset contractors obligations. Government revenue had dropped at the time because of the fall in the price of oil.

    Defending government’s action, Emefiele said “most countries in the world today are confronted not only by the challenges coming from the COVID-19 pandemic causing economic crisis and the rest of them.

    “What I keep saying is that it will be irresponsible for the CBN or any other federal reserve to stand idle and refuse to support its government at this time and what we are doing here is being done in other climes.

    “At the last MPC meeting, I gave data on what is being done in other climes to shore up their economy and take them out of recession.

    “I’m not going to pretend about it. We are facing a problem about productivity output which is GDP. Luckily, we managed to exit from recession, now we are looking at how to get our head above the water”.

  • Nigerian banking in trouble – Dele Sobowale

    Nigerian banking in trouble – Dele Sobowale

    By Dele Sobowale

    “Impress it on the mind of any man that he can do no wrong; and he will soon convince you of your mistake.”

    In almost thirty years of writing articles for Nigerian newspapers, it had been my policy to seldom get involved with endorsing individuals for any office – public or private. My first jobs, starting in the Summer of 1968, were in Sales Boston, USA. Nearly twenty years were eventually spent in Sales/Marketing functions during the stretch. I sold close to 300 different brands in at least twenty-five product categories along the way. Some of the brands which readily came to mind were those promoted using endorsement by well-known celebrities in various walks of life. Quite often, the stars were paid for the support. Success is not guaranteed; the product might still fail.

    I learnt one enduring lesson from one drug launched in 1969 using a popular Hollywood actor and actress. The drug became an instant success. But, suddenly, a few reported cases of deaths occasioned by adverse effects of the drug brought it down. However, that was not the end of the story for actor and actress. Several people sued them; claiming they were persuaded to patronise the deadly product by the stars. My lesson from the experience remains enduring. Be careful giving endorsements to causes, political parties and individuals. You may regret it.

    But, we live in a world of controversies; some of which affect the nation and its people in serious ways. When they occur, staying neutral is not a virtue. It is at least cowardice; at worst, unpatriotic. Then, one must take a chance based on the best objective pieces of information available. In 2019, despite the warning by late Henry Boyo, I decided to lobby for the Governor of Central Bank of Nigeria, CBN, to be re-appointed. I honestly believed then that it was the right thing to do. Today, I am not so sure.

    Mr Godwin Emefiele now scares the hell out of me; the same way that Buhari almost drove me crazy in 2015. Just on account of his first forty lopsided appointments, I knew then that the man I spent five years promoting for President would lead us into national catastrophe. Anarchy is here.

    However, after just one meeting with Emefiele, it occurred to me that he might save the economy – while the rest of Nigeria goes to blazes. Until 2019, he actually did his best to save us from the economic illiterates in charge of fiscal policy by adding some of their jobs to his. Something has gone wrong at the CBN. My first experience with arrest and detention occurred during President Babangida’s administration.

    Angered by a CBN policy, I wrote an article titled CONFUSED BANK OF NIGERIA. By 12.00 noon of the Monday, I was whisked off from my office at the Nigerian Institute of Management, Victoria Island to CBN office at Tinubu and detained for hours.

    Six more trips to detention followed under IBB and Abacha. I don’t want to write CONFUSED BANK OF NIGERIA 2, not out of fear; but, because Mr Emefiele might listen more than Alhaji Ahmed. Here are the reasons for my annoyance.

    CBN ORDERS NEW CHEQUE BOOKS TO BE ISSUED FROM APRIL.
    Like most depositors with banks, no message was sent to me directly by all the banks with which I do business that from the end of March 2021 cheque books issued to me had become tissue papers.

    Three of the cheque books were issued in March this year. Four leaves were used from one; two from the second and only one from the third. I was charged N1500 to N2000 for each booklet. Altogether, seven cheque books costing N12,500 were rendered useless on my accounts alone.
    Multiply my loss by the number of cheque books issued to individual and corporate entities by banks, as well as governments and their agencies, and we might be looking at N1 trillion of depositors’ funds gone up in smoke on account of another sudden change by the CBN.

    To the best of my knowledge, Lagos State is the only state with a trillion naira budget this year; and the figure will exceed the budgets of the four poorest states combined. This is the amount CBN in its “infinite wisdom” has ordered burnt in a Nigeria which is the Poverty Capital of the world right now. Is it possible we are so poor because those in charge of our fiscal and monetary policies don’t count the costs of the measures they introduce?

    To make the directive as painful as possible, the banks started implementing the new order on Thursday before Good Friday. Those who were issued cheques for collection met brick walls in every bank. For many, the Easter celebrations were ruined because it was too late to get paid. That raises another question. Granted making depositors happy is not a function of the CBN; but, is causing them pain now a part of its mandate? And, has it occurred to the “wise men and women” at the CBN that measures such as these will eventually discourage customers from patronising banks? Again, like most depositors, I now have to wait until the banks can issue the cheques with which to operate.
    EVEN E-BANKING SUFFERS FROM ARBITRARINESS
    “Fish rots from the head.”

    So, it was not surprising that the banks, imbued with the impunity they have seen demonstrated by CBN, also delivered their own pain to millions of depositors using MTN platforms for e-transactions during the same Easter period. Whether or not MTN is right or wrong is not the issue. The fact that depositors were punished for the alleged sins of MTN is reprehensible. Unfortunately, the CBN which could have intervened on behalf of depositors has been setting such bad examples it no longer has the moral authority to call the banks to order.

    The CBN and the banks might be operating under the self-delusion that there will be no repercussions. History is not on their side. Once a large enough number of depositors lose confidence in the regular banks, illegal operators will flourish to the detriment of the banking sector and the nation.

    BREAKING NEWS

    “CBN gets order to freeze 194 accounts in 17 banks.” News Report, April 9, 2021
    Adopting its ambush strategy which involves obtaining ex-parte motions to stop a depositor’s account from being operated, the CBN struck again in the second week of April. I don’t know the owners of those accounts; and this intervention is not intended to exonerate them. But, the frequent use of ex-parte court orders against depositors, who have not been charged with any crime, or convicted, smacks of abuse of court processes by the CBN. Every business organisation is a dynamic player in the economy. It is involved in several transactions which are credit-based – deliver goods and services to us and we pay later. When CBN requests for the accounts to be frozen for 180 days, what would happen to their obligations to banks, other creditors and staff, as well as suppliers, which cannot be paid for at least 180 days? Many small scale enterprises have gone under by being caught in the dragnets which were meant for a “big fish”.

    Coming so soon after the freeze on the accounts of #END SARS# protesters, the closure of Bitcoin accounts and the change of cheque books, this latest move by CBN is suddenly making Nigerian banks risky places to deposit funds. Why take the chance if you don’t know if you will ever get your money back?

    The court reportedly granted 45 days; but, in today’s fast-paced economic environment, a business can be bankrupted in less than 30 days. Small comfort.

  • Bandits, terrorists cause of Nigeria’s rising inflation – Emefiele

    Mr Godwin Emefiele, Governor of the Central Bank of Nigeria (CBN), has attributed the country’s rising inflation to worsening insecurity, caused by bandits, terrorists and armed herdsmen.

    Emefiele stated this on Tuesday while presenting the communique from the Monetary Policy Committee (MPC) meeting which started on Monday.

    Emefiele explained that the inflation, which has increased for the 18th consecutive month, was exacerbated by food inflation.

    He said that insecurity in many food producing areas of the country was a major contributing factor.

    “The MPC noted with concern the continued uptick in inflationary pressure for the 18th consecutive month as headline inflation continued on an upward to 17.33 per cent at the end of February 2021 from 16.47 per cent in January 2021.

    “This increase continues to be attributed to both food and other core components of inflation.

    “This specific uptick in food inflation was the major driving factor for the uptick in headline inflation.

    “This was due to the worsening security situation in many parts of the country, particularly the food producing areas where farmers faced frequent attacks by herdsmen and bandits in their farms,’’ he said.

    The apex bank’s governor said that while the bank was making significant intervention in the agricultural sector, the rising insecurity was limiting expected outcomes in terms of supply to the markets.

    He added that the situation was a major contributory factor to the rise in food prices.

    Emefiele urged the Federal Government to collaborate with relevant stakeholders to urgently address the challenge of insecurity across the country.

    He said that the inflationary trend was also worsened by the hike in the pump price of petrol, the upward adjustment of electricity tariff as well as depreciation in the value of the Naira.

    He, however, commended CBN’s various interventions to boost food security through its various agriculture programmes

  • Discord in Buhari’s Choir – Chidi Amuta

    Chidi Amuta

    President Muhammadu Buhari would have made a bad orchestra conductor. In that line of business, a certain faithfulness to synchrony and harmonious outcome is the secret of success.

    Even in his primary lifelong career of soldiering, order and uniformity have remained the hallmarks of the best traditions of the military endeavour. His present occupation of politics is however somewhat different. Politics is the pursuit of ultimate order by means of organized incoherence and deliberate multi speak. Yet power, which is the end of politics, assures governance. Success in governance is the triumph of order in the service of everyone’s good. Disorderly governance is the harbinger of something frightful: anarchy by whatever its various aliases.

     

    In recent months and weeks, Nigerians have been treated to a festival of discordant tunes from the apex of national power and governance. Sustained public outcry led to a belated firing of jaded and incompetent service chiefs. Before the public could decide on whether the service chiefs were pushed out or forced to jump off the wagon, the President nominated all of them for ambassadorial positions.

    Buhari administration seems to be posing fresh challenges for political science on the proper definition of governance in a democracy. Is government a collective responsibility with a unified position and voice? Or, is it an incoherent choir of privileged citizens as lone wolves in which each man or woman in authority sings what he pleases on public issues?

    A Senate that is ever ready to rubber stamp literally any knee jerk or sneeze from the executive branch readily confirmed the former service chiefs to represent Nigeria anywhere the president may send them in the world. No questions asked. No recourse to proper security clearance. No audit clearance by the different arms of the services over which they presided. Not even a public hearing to allow the ex chiefs to defend their track record of public service in their controversial recent roles against the background of spiraling nationwide insecurity. There was not even an opportunity for the Nigerian public to decide whether the former chiefs understand civics let alone Nigeria’s foreign policy imperatives. Just “Carry Go” in popular Nigerian parlance! Take a bow and go!

     

    Just last week, a controversial BBC interview by the president’s National Security Adviser, Mr. Babagana Monguno, raised disturbing questions about basic accountability under the ex service chiefs. Before Mr. Monguno was obviously compelled to readjust his position, he had raised questions concerning the use of the over $1 billion commandeered from the Excess Crude Account belonging to the states to fund military supplies in aid of the counter insurgency operations in the North East. By Monguno’s original account, there is as yet no verifiable evidence of arms and equipment procurement with the funds nor could the funds be located or properly accounted for. An embarrassed presidency jumped to reduce the damage, insisting that no money was missing. But the damage had been done in terms of the considerably degraded credibility of the Buhari administration who keeps swearing by its commitment to the fight against corruption.

     

    While the embers of this potential scandal are still glowing, two major media outlets have recently treated the public to even more damning obviously leaked stories around the office of the NSA. According to a report in The Cable and substantially amplified by the San Francisco based The Will, Mr. Monguno was barely stopped from committing the nation to a $2.5 billion arms purchase deal with a United Arab Emirates third party arms supply company in aid of the same North East counter insurgency enterprise.

     

    According to this yet uncorroborated report, the deal was only scuttled by the intervention of late presidential Chief of Staff Abba Kyari who along with the president insisted that arms purchases of that magnitude should only be on a government-to-government basis. This position was later reaffirmed by Vice President Yemi Osinbajo when the matter resurfaced when he was acting president during Buhari’s medical leave.

     

    What is brewing around the NSA’s office is an obvious armsgate hurricane scandal with vast implications for the Buhari presidency. From the numerous reports of money and arms racketeering around the office of the NSA under former president Goodluck Jonathan, it is emerging that the office of the NSA in Nigeria has become a giant clearing house for nefarious arms and security fund related corruption. These range from funneling of funds for political purposes to questionable black market and middle man arms deals.

     

    This trend, now being amplified under Mr. Buhari, raises many disturbing questions. In a country with a Ministry of Defence with extant bureaucratic structures of accountability and arms purchase procedures, it is strange that a black market structure has been allowed to grow in the office of the NSA. Instructively, the Nigerian Ministry of Defence has considerable experience in arms procurement transactions spanning a full -fledged civil war and numerous peace keeping operations for over four decades. Why would matters of arms purchases be left to the whims of the office of the NSA? Why would the office of the NSA be commandeered to carry out nefarious transactions and illicit covert security related operations in spite of the existence of the existence of agencies like the Defence Intelligence Agency(DIA), the Department of State Security(DSS), the National Intelligence Agency(NIA) and even the Police? Many informed opinions in Nigeria have since come to the conclusion that the insurgencies and terrorist related problems of the country have persisted for this long mostly because the entire military operations around them have since transformed into an industry of armed corruption, an over laden gravy train that is not in a hurry to end.

     

    There is nothing in the section of the Constitution establishing the office of the NSA that entrusts it with the numerous underhand money laundering, humongous stealing and scam errands that we have witnessed both under Mr. Jonathan and now Mr. Buhari. The aberrations are typical exhibits of Nigeria’s institutionalized political rascality and leadership without accountability.

     

    In the US tradition that we pretend to be copying, the office of the National Security Adviser is essentially meant to be one of an intellectual sounding board for the president on National Security issues. Its roles ought to include the generation of policy options as well as liaising with and among national security institutions and agencies on behalf of the president. It even includes strategic projections on future national security threats and building scenarios that would guide the president to avoid future national security emergencies that may grow into credible threats. This why US presidents have tended to traditionally prefer either renowned intellectuals or former military and intelligence persons with a certain measure of intellectual depth and curiosity to fill the position.

     

    On a strictly governmental pecking order, while the NSA is a senior cabinet rank presidential adviser, the only difference between him/her and the other senior advisers of the president is in the nature of the NSA’s subject: security and intelligence. But strictly speaking, the office of the NSA in the US tradition is essentially one of the intellectual multiplier centres for increasing the options available to the president on matters of national security.

     

    On matters of arms and armaments, the views of the NSA would only be important to the extent that such materiel affect the nation’s strategic advantages. Between the NSA’s office and the Pentagon there is both physically and conceptually a very long distance. I could not imagine former US NSAs like Condoleeza Rice, Collin Powell, Zbibigniew Brzenski or Jake Sullivan featuring as glorified arms merchants and political paymasters in any Pentagon arms procurement transaction!

     

    For the office of our NSA to be reduced to an unlicensed mini bureau de change, politicians casino or an Arab street bazaar of infamy is the hallmark of a leadership decay that can only be Nigerian. Furthermore, to use that office to usurp or dilute the functions of the Ministry of Defence is a tragic institutional devaluation. Even worse is the anomaly of allowing the service chiefs to be absorbed in the mundane gritty of direct arms procurement transactions instead of serving as technical advisers to the Ministry of Defence as end users of the armaments. On the potential scandals now flying around on arms and money around the office of the NSA and the former service chiefs, the least that the Nigerian public expects from president Buhari is the urgent institution of a credible investigation into these allegations. The benefit of such an investigation belongs ultimately to the president whose legacy may be further tainted by the potential scandals.

     

    To nearly every ordinary Nigeria, economic calculations begin and end at the gas station. The pump price of petrol and diesel determine most other things that are important to ordinary lives. And for successive Nigerian governments, routine and frequent increases in the price of petroleum products has become the readiest form of lazy taxation. Claims of subsidy on imported petroleum products has fueled the frequent price increases. Barely a fortnight ago, the Petroleum Price Regulatory Agency (PPRA) which administers the prices of these products on behalf of government announced a sudden increase in petroleum products prices, the third or fourth in the last two years. The public woke up to find either shut gas stations, long queues or increased prices. Labour unions were caught unawares. A showdown between government and labour accompanied by spontaneous public unrest was imminent. Government panicked but feigned lack of awareness of the decision to hike prices. The NNPC and the Petroleum Ministry went into a damage control mode by disowning an condemning the increases as unauthorized. The imminent price increase was doused and reversed pending consultations between government and labour.

     

    Here again, on something as important as petroleum product prices, this government was as incoherent as can be. The Ministry of Petroleum and a parastatal under its direct purview were discordant. There is no greater indication that this government lacks internal cohesion and consensus on even the most fundamental issue that affect the welfare of most Nigerians.

     

    While all that lasted, news came that the United Kingdom government was in the process of returning the sum of £4.2 million recovered from former Governor James Ibori of Delta State. Even before the funds were received, President Buhari’s over politicized Attorney General, Mr. Abubakar Malami, quickly announced that the anticipated funds would be appropriated by the federal government to pay for ongoing federal projects ranging from the Second Niger Bridge, the Kano-Kaduna highway and the Lagos-Ibadan expressway etc. Interestingly, no senior official of government or even the presidency itself offered any view in support of the Attorney General. There was no indication that the Attorney General’s position reflected the collective stance of government resulting from any systematic consultations, logic or concerted policy position.

     

    Quickly, the position of the AG was greeted by a firestorm of nationwide controversy which was clearly avoidable. Common sense dictates that the recovered funds should on receipt revert to Delta State from whose coffers they were stolen in the first place. It is of course the responsibility of the federal government and specifically the office of the Attorney General’s office to stage all the legal processes required to deal with any legal matters between the Nigerian sovereign and any external jurisdiction. Once that matter is resolved, the proceeds of the outcome will automatically revert to whatever Nigerian province of state where remedy and restitution is deserved. In the case of the Ibori funds, the money belongs squarely to Delta State and should be accordingly returned to it. A father who fights off robbers who invade his home to steal the property of one of his children can only restore the stolen item to the affected child when recovered, not distribute the recovered item to the entire family. It does appear that what we are dealing with in the Ibori matter is once again the overbearing ego of an Attorney General who may have sliced off a portion of presidential authority and domiciled it in his brief case. Only a few days ago, the AG regaled the nation with self adulation on why he single handedly chose the newly confirmed EFCC chairman, Mr. Bawa, to succeed his political adversary Mr. Magu, for the job!

     

    There is further growing evidence that an increasing number of high officials of this administration are functioning more like policy lone wolves. Highly placed government officials are coming up with disjointed policy positions of their own fabrication and announcing same as government positions even where such policies have far reaching implications for the national economy and the livelihood of many Nigerians. This may be partly because they look in vain for policy direction from the top or informed consensus within government on important issues. A recent example is the Central Bank of Nigeria policy circular arbitrarily banning crypto currencies. That policy announcement quickly destabilized the growing digital economic outreach of some Nigerian entrepreneurs. It also sent out a warning signal to international digital economy players. A number of Nigerian digital economy startups had made considerable inroads and investments in crypto currencies. They were caught napping.

     

    Obviously, the CBN position was patently uninformed either about the crypto currency phenomenon or indeed the current trend in the global economic space as it concerns crypto currencies. Coincidentally, barely 48 hours after the CBN announcement, Elon Musk, the US tech billionaire owner of Tesla and Space X invested $1.5 billion in Bitcoin, a leading crypto currency. The international stock price of Bitcoin went astronomically high and attracted many more high stakes investors. In a somewhat related development, a major Nigerian owned but US based digital economy payment company Flutterwave hit $i billion in capitalization within weeks of the CBN announcement. On its part, the Bank of England announced its policies and regulatory framework on crypt currencies while encouraging British investors to explore possibilities in that zone.

     

    Clearly then, Mr. Emefiele, Nigerian’s Central Bank Tsar, may have taken a decision based mostly on his own conservative economics orientation, not on current global economic trends. Instead of using the vast resources of the CBN to increase knowledge on crypto currencies in order to evolve a suitable regulatory framework for the country, the CBN governor adopted the usual Nigerian lazy approach of staying on the familiar road. Mr. Emefiele was quickly summoned by the National Assembly in a bid to sanctify a pre-ordained medieval policy choice. The NASS hearing produced neither heat nor light on the subject of crypto currencies as a good number of the legislators displayed patent ignorance of the crypto currency phenomenon. Luckily for all of us, the President’s spokespersons kept a dignified silence on Emefiele’s unfortunate misadventure.

     

    While the mostly ignorance driven controversy raged, Vice President Yemi Osinbajo stepped forward as usual to add light to an unnecessary controversy. Speaking at a Bankers Committee Webinar a few days into the debate, the Vice President directly contradicted and cancelled out the CBN governor. He insisted that the challenge of Nigeria was to evolve a robust regulatory framework for crypto currencies instead of an outright ban as had been announced. Mr. Osinbajo, ever the persistent voice of enlightenment and reason in the Buhari administration, was advocating the adoption and creation of room for disruptive technologies if Nigeria is to occupy any place in the new world. In a new world ruled by knowledge especially the power of digitization, it is odd that a country with the knowledge base and economic potentials of Nigeria should be marooned in policy antiquity as conveyed in Mr. Emefiele’s recurrent policy positions.

     

    Interestingly, the Vice President is the chairperson of the National Economic Council(NEC) which is constitutionally mandated to oversee the national economy at the apex. Yet he obviously did not have any fore knowledge of such a major policy decision of the Central Bank. It is also interesting that no single member of the president’s Economic Advisory Council came forward to comment on Mr. Emefiele’s ancient policy on cryptocurrencies. Here again, we are face to face with avoidable discord on what ought to be a major government policy position.

     

    On these and numerous other issues, the Buhari administration seems to be posing fresh challenges for political science on the proper definition of governance in a democracy. Is government a collective responsibility with a unified position and voice? Or, is it an incoherent choir of privileged citizens as lone wolves in which each man or woman in authority sings what he pleases on public issues?

     

     

     

     

     

     

     

     

     

  • WTO DG, Okonjo-Iweala to meet Buhari on Monday, to engage FG on growing Nigeria’s economy

    WTO DG, Okonjo-Iweala to meet Buhari on Monday, to engage FG on growing Nigeria’s economy

    The newly appointed Director General of the World Trade Organisation (WTO), Dr. Ngozi Okonjo-Iweala, who arrived Nigeria on a five-day working visit on Saturday has promised that WTO will assist Nigeria in improving its economy.

    The visit, designed to enable her appreciate the support of the federal government towards her emergence would see her hold discussions with President Muhammadu Buhari on Monday, March 15.

    Also, she has been scheduled to engage other top players in public and private sectors, including ministers on how to leverage the WTO and the African Continental Free Trade Agreement (AfCFTA) to improve trade and the economy.

    The former Coordinating Minister for the Economy and Minister of Finance, who arrived the Nnamdi Azikwe International Airport, Abuja via an Ethiopian airliner with registration number, ET 911, which touched down at exactly 12pm was received by the Permanent Secretary, Ministry of Industry, Trade and Investment, Dr. Nasir Sani-Gwarzo and other top officials of the ministry.

    Okonjo-Iweala was accompanied on the visit from Geneva, Switzerland by some ambassadors, including those from the Republic of Barbados and Cameroon.
    Shortly after the airport formalities at the presidential wing of the airport, she was driven in a motorcade to her private residence in Abuja.

    In a brief interview with journalists, the WTO DG said her visit was to see how to better leverage the WTO and AfCFTA to assist Nigeria and entrepreneurs to improve the economy, expressing optimism that Nigeria could use the AfCFTA to boost trade and investment.

    She said: “I am not going to give you all the points for the visit today; I know you want them. But what we are trying to do indeed is how to boost Nigeria’s share of trade in Africa. We hope to be able to use the African Continental Free Trade Agreement to improve our trade, and of course, to do that you have to improve our investment.
    “We have to add value to some of our products. This continental free trade agreement is a unique opportunity for us to be able to engage commercially with other African nations and that will boost our exports. Then, when you boost exports, you will create more jobs.

    “We are also going to talk about digital economy and how our young people are accessing the Internet for e-commerce. Those are some of the issues. What can we do to support more of that and generate more activities?”
    On her itinerary, she said she would meet with President Buhari and several top government officials as well as players in the private sectors, including women entrepreneurs.

    “I will meet with His Excellency, the President; the Chief of Staff; the Minister of Industry, Trade and Investment; the Minister of Foreign Affairs; Minister of Finance; Governor of the Central Bank of Nigeria and the Organised Private Sector as well as Micro, Small and Medium Enterprises (MSMEs) and women entrepreneurs.
    “I will like to meet with the women, and the whole objective is to see how the WTO can better assist Nigerian and Nigerian entrepreneurs with respect to improving the economy.”

    Speaking on her emergence as the Director General of WTO, the Permanent Secretary, Ministry of Industry, Trade and Investment, Dr. Nasir Sani-Gwarzo, said it was a proud moment for Nigeria and Africa.
    Sani-Gwarzo noted that it was a unique moment and opportunity to thank the world for supporting Nigeria to achieve the feat of having a Nigerian as the head of the WTO.

    “We have received a lot of support from many countries, we appreciate them. Her visit is specifically to start from home to say thank you to the President and Nigerians, who supported her from home and in the Diaspora.
    “Tremendous support has gone into the process and we are grateful that she emerged, after a very thoroughly contested process as the DG. It is a proud moment for Nigeria, for herself and also for women in the world,” Sani-Gwarzo noted.
    According to the itinerary of her visit released by the Ministry of Industry, Trade and Investment, Okonjo-Iweala, who assumed office on March 1, 2021 is scheduled to meet with President Buhari; Minister of Finance, Budget and National Planning, Mrs. Zainab Ahmed; Minister of Industry Trade and Investment Otunba Adeniyi Adebayo on Monday.

    On Tuesday, she is billed to meet with the Governor of the Central Bank of Nigeria (CBN), Mr. Godwin Emefiele; the Presidential Task on COVID-19 head by the Secretary to the Government of the Federation, Boss Mustapha and the Director General of the Nigerian Centre for Disease Control (NCDC), Dr. Chinwe Ihekweazu as well as captains of industries.
    The WTO DG is also to meet with women entrepreneurs, and MSMEs players.

  • Court summons Malami, Magu, Emefiele, others to testify in Maina’s trial

    Court summons Malami, Magu, Emefiele, others to testify in Maina’s trial

    The Federal High Court, Abuja, has issued a subpoena compelling Abubakar Malami, the Attorney-General of the Federation (AGF) and Ibrahim Magu, former acting Chairman, EFCC .

    They are to testify in the ongoing case against Abdulrasheed Maina,Chairman, defunct Pension Reform Task Team (PRTT).

    The subpoena, signed on March 8 by the presiding judge, Okon Abang, also commanded the Governor of Central Bank of Nigeria (CBN), Godwin Emefiele, and others to appeared before the court on March 9, March 10 and March 11 to give their testimony.

    Others who were also subpoenaed included Femi Falana, SAN; M. Mustapha of Zenith Bank Abuja; Hassan Salihu of ICPC; G.T. Idriss also from ICPC; Mohammed Wakil, retired Commissioner of Police and Chief Kenneth Amabem.

    Others are Mr Kennedy Uzoka, Group Managing Director of United Bank for Africa (UBA); and Mrs Nneka Onyeali-Ikpe, Managing Director, Fidelity Bank; Mr Ibrahim Kaigama of NIPSS Jos and the director of compliance with CBN.

    The document addressed to Malami and Magu reads: “You are commanded in the name of the President and Commander in Chief of the Armed Forces of the Federal Pepublic of Nigeria to attend before this court at court 6, on 9th, 10th, 11th day of March 2021 at 9 o’clock in the forenoon, and so from day to day till the above case is tied, to give evidence on behalf of the 1st defendant.”

    Maina is standing trial for allegedly laundering money to the tune of N2 billion.

    The first defence witness in the case, Ngozika Ihuoma, had, while giving his evidence-in-chief, alleged that EFCC under Magu misappropriated 222 property worth N1.63 trillion recovered by the Maina-led PRTT.

    He alleged that Magu had sold most of the property to his friends and associates.

    Ihuoma had also told the court that AGF and the National Security Adviser (NSA) met with Maina in Dubai, United Arab Emirate (UAE) in January 2016,

    “After the meeting in Dubai, Maina gave the delegation intelligence report that led to the recovery of N1.3 trillion out of the N3 trillion promised to recover,” the witness said.

  • It is futile to expect sustainable growth under Buhari – Dele Sobowale

    It is futile to expect sustainable growth under Buhari – Dele Sobowale

    By Dele Sobowale

    “Success is unremitting attention to purpose.”Benjamin Disraeli, British Prime Minister, 1804-1881.

    The Central Bank of Nigeria, CBN, and VANGUARD on February 26, 2021, organised another Economic Summit at the Eko Hotels and Suites – partly designed to find a way for Nigeria to attain sustainable growth.

    That has proved elusive so far; and with Buhari in power till 2023, we might have to wait until after the next general elections to have any hopes of achieving it. Before you dismiss that statement as the pronouncements of a doomsayer, please be patient enough to examine the evidence.

    “Those who deal in ideas, if they are wise, will welcome attack. Only a peaceful passage should dismay them for it proves the ideas do not affect anyone very much.” Professor John Kenneth Galbraith, 1908-2006.

    I have written continuously on the Business/Economic pages of VANGUARD since 1988. Incidentally, my first Editor was Lanre Alabi who organised this latest Economic Summit which was a collaborative effort . I had an obligation to be there despite my feeling of Economic Summit fatigue in Nigeria.

    Centralisation of power supply is inimical to rapid economic growth. America, India, China, Great Britain, South Africa and Brazil are all federating units. None operates a centralised power sector

    The communiqués, the brilliant ideas which got participants clapping invariably end up gathering dust in Aso Rock. Occasionally, some useful slogans are plucked out and used for political purposes. They are then rapidly discarded when no more propaganda value can be derived from them.

    The year 2020 ended two months and one week ago. Few Nigerians old enough can recollect that in 1992, a group of Nigeria’s best and brightest minds gathered in Abuja and pronounced that, based on planned sustainable growth, Nigeria would become one of the largest twenty economies in the world by 2020. That was the VISION 2020. I was the lone voice calling it DELUSION 2020. History would record that, in 2020, the Nigerian economy grew by -1.92 per cent. And, we are nowhere near top 20. Why? Because, the sustainable growth that would have made the vision possible was not achieved. The next question is: why? That is easy to answer; and the answer provides some of the reasons sustainable growth is impossible until after 2023.

    THE THREE TRAPS HOLDING NIGERIA BACK

    When in 1992, the First Nigerian Economic Summit Group, NESG, was convened by Chief Ernest Shonekan – the Head of Government under Military President Babangida – among the key recommendations were deregulation of the power sector, deregulation of the petroleum sector and return to true federalism.

    There were others, but, the three will serve to illustrate how an extremely bad political system is making excellent economic management and sustainable growth impossible.

    Centralisation of power supply is inimical to rapid economic growth. America, India, China, Great Britain, South Africa and Brazil are all federating units. None operates a centralised power sector. When unprecedented snow storm rendered Texas powerless, the rest of America went merrily on its own without power disruptions. Each year a hurricane destroys power lines in Florida, neighbouring states are never affected. The same is true of India, China and all the other nations organised around federalism. No disaster can render the entire nation without power supply.

    I was in the group assigned to study and make recommendations on the Power Sector and it was our submission that as long as the Federal Government has almost exclusive monopoly on power supply sustainable growth will never be achieved. Power centralisation remains with us twenty nine years after. Furthermore, this government has no plans to decentralise.

    Petroleum Industrialisation, or energy sector deregulation, is another stumbling block against rapid growth. The Nigerian National Petroleum Corporation, NNPC, is the only state-owned petroleum company in the world running at a loss. The Saudi counterpart, ARAMCO, recently went to the global financial markets to raise capital for development. The sum eventually raised was more than Nigeria’s total debt. That can only happen because ARAMCO is managed as a business intended to make money for Saudis. NNPC is managed as a scam for the benefit of a few. Until government gets its hands off NNPC it can never play the catalytic role it is meant to for growth to be sustained. Don’t be fooled; the Buhari administration is not keen on PIB. They intend to run it until 2023.

    Fiscal federalism will continue to elude us as long as every month states must troop to Abuja to receive allocations and for as long as the Federal Government imposes on states the uniform salaries and wages workers will receive. The whole scheme makes no economic sense. In a typical month, Rivers or Akwa Ibom states would collect more allocations than Nasarawa, Gombe, Plateau and Ekiti states combined. Yet, they are supposed to pay public servants – from Governor to Gateman — the same salaries and wages. Does anybody need a degree in Economics to understand why the governors of the poorest states offer only empty promises and propaganda? How much is left for Ekiti for discretionary expenditure after paying the Governor, Deputy Governor, Chief of Staff, Special Advisers and legislators the same amount as Lagos?

    Again, at the 1992 summit, I made the point that sustainable growth will be a mission impossible as long as most states are negative contributors to economic and social development of Nigeria. That was light years from where we are today. In the last five years, most states have added more burden to the Federal Government’s load. Heightened insecurity is not only diverting resources from growth-inducers, eg infrastructure, education, health, agriculture etc, it is discouraging foreign and domestic investments everywhere. Sustainable growth is impossible if the efforts are intermittent and mostly unpredictable.

    Late Professor Galbraith, a Nobel Prize Winner in Economics, while teaching at Harvard University, ran a Summer Course in Boston in 1967 on the Planned Economies – Japan, USSR, Western Germany, India – among others. One aspect of the Course was the use of INPUT-OUTPUT TABLES for economic planning. One thing was common to the countries which experienced rapid growth at the time. It was their fanatic determination to achieve certain economic goals and the subjugating of everything else to the attainment of those objectives annually.

    I imagine that is what Disraeli meant by “unremitting attention to purpose”. When Stalin’s government declared that 1,000,000 housing units would be built in four years, everybody from cement manufacturers to sand, nails, toilet pumps suppliers contracted to partake in the project knew that no excuses will be accepted. It was only by being reasonably sure of achieving that goal that they could face other issues with confidence. A situation in which too many economic goals are hanging unresolved invariably cannot stimulate sustainable growth because there is no solid foundation anywhere on which to build in subsequent years.

    I left the joint CBN-VANGUARD Summit feeling depressed. Once again, some of our brightest and best minds are working hard – but in vain. The lone man talking in the wilderness probably had a better chance of influencing events than Emefiele, Fayemi, Bismacrk Rewane and Budget Director.

  • Dangote Refinery will sell refined crude to FG in naira – Emefiele

    Dangote Refinery will sell refined crude to FG in naira – Emefiele

    The Central Bank of Nigeria (CBN) Governor, Mr Godwin Emefiele, says arrangement is being made to enable the Dangote Refinery sell refined crude to Nigeria in naira when it commences production.

    Emefiele also disclosed that the first shipment of Urea from the Dangote Fertiliser Plant would begin in March to help boost agriculture in the country.

    Emefiele made the disclosure on Saturday during an inspection tour of the sites of Dangote Refinery, Petrochemicals Complex Fertiliser Plant and Subsea Gas Pipeline projects at Ibeju Lekki, Lagos.

    The CBN governor noted that the 15 billion dollar projects being constructed by the Dangote Group would save Nigeria from expending about 41 per cent of its foreign exchange on importation of petroleum products.

    Emefiele said: ”Based on agreement and discussions with the Nigerian National Petroleum Corporation and the oil companies, the Dangote Refinery can buy its crude in naira, refine it, and produce it for Nigerians’ use in naira.

    “That is the element where foreign exchange is saved for the country becomes very clear.

    “We are also very optimistic that by refining this product here in Nigeria, all those costs associated with either demurrage from import, costs associated with freight will be totally eliminated.

    “This will make the price of our petroleum products cheaper in naira.

    “If we are lucky that what the refinery produces is more than we need locally you will see Nigerian businessmen buying small vessels to take them to our West African neighbours to sell to them in naira.

    “This will increase our volume in naira and help to push it into the Economic Community of West African States as a currency,” Emefiele said.

    Emefiele expressed optimism that the refinery would be completed by the first quarter of 2022, adding that this would put an end to the issue of petrol subsidy in the country.

    “I am saying that by this time next year, our cost of import of petroleum products for petrochemicals or fertiliser will be able to save that which will save Nigeria’s reserve.

    “It will help us so that we can begin to focus on more important items that we cannot produce in Nigeria today,” Emefiele said.

    He said the CBN had given a N100 billion intervention to the projects, adding that the apex bank was ready to support Nigerian businesses set up to uplift the country economically.

    Also speaking, Alhaji Aliko Dangote said that the fertiliser and petrochemicals plants were capable of generating 2.5 billion dollars annually while the refinery would serve Nigeria and other countries across the world.

    He said the projects would create jobs for Nigerians and build their capacity in critical areas of the oil and gas industry.

    Dangote thanked President Muhammadu Buhari and the CBN governor for their support toward the completion of the projects.

    He said: “I will like to thank the president personally for helping us and assisting us in making sure that we are now back on track.

    “Mr President personally wrote a letter to the president of China and asked them to bring the expatriates that we don’t have so that we can continue work.

    “During the coronavirus, you will remember that we had one or two cases when it started and everybody ran away from site but right now we are beginning to bring people back and we have about 30,000 people now.

    “The good part of it is that we have learnt a lot also and there are a lot of Nigerians that just need small training and they are doing extremely well.

    ”So now we only need a small number of people coming from abroad just to give that training.”

    Dangote also called for the speedy passage of the Petroleum Industry Bill currently before the National Assembly to maximise the opportunities in the Nigerian oil and gas sector.