RingTrue with Yemi Adebowale

The fire brigade resolution by commercial banks to reject foreign currency deposits yielded result briefly early this week, with the Naira at some point appreciating to N210 to a Dollar. This was better than the N240 to a Dollar a week back. Speculative trading on the currency was temporarily slowed down by the action. This gain recorded by the nation’s currency was largely driven by excess Dollar supply in the market as people and businessmen could not save in their domiciliary accounts. However, this cosmetic and draconian measure crashed just a few days after.

By yesterday, the Naira had depreciated to N224 to a Dollar. Obviously, any economic action not built on a solid foundation and sound reasoning will always fail. How can deposit money banks suddenly stop their customers from putting money in their accounts? This is weird news coming out of our dear country. I consider this a breach of trust by the banks. It is akin to what we call bolekaja in Lagos. i.e. roforofo fight by desperate touts in motor parks.


The CBN Governor, Godwin Emefiele had earlier in the week said the “keep your Dollar at home” decision by the banks was not taken by the CBN, but that the apex bank was in support of the idea. I was convinced that the banks could not have unilaterally initiated such a draconian action. This is the voice of Jacob, but the hands are that of Esau. The banks were clearly bolstered by the CBN that has been fighting a losing battle with speculators and money launderers. My conviction was confirmed on August 5, when the CBN formally proscribed the acceptance of foreign cash deposits by commercials banks operating in the country.


A lot of lies have been flying around. Imagine the commercial lenders saying they stopped accepting Dollar deposits when their vaults were full and had no avenues of transferring the cash overseas? These banks are overwhelmed daily by international money transfer customers who are paid in Dollars. Sometimes, they will even tell such customers to come back due to shortage of the USD.

I hope we won’t get to the level where Nigerian banks will shut their doors for days as was the case in Greece a couple of weeks back; all in the name of trying to shore up the Naira. For me, this “keep your Dollars at home” measure aimed at strengthening the Naira is a fraudulent one. That was why Naira’s gain in the parallel market was short-lived. People will always find a way of circumventing steps like this one. The CBN should be more proactive in tackling the fundamental problem of the actual pricing of the Naira. Our currency can’t genuinely appreciate if industrial production remains low. It can’t appreciate if our source of revenue and forex remain largely crude oil. Our dear Naira can’t appreciate if we remain an import-dependent economy. Unfortunately, we still don’t have an economic team to work on these challenges. Our President is still on honeymoon, while Emefiele is left alone to carry the cross.

CONTINUE READING HERE http://www.thisdaylive.com/articles/cbn-s-bolekaja-tactics-to-shore-up-naira/216924/ lalasticlala

Hmmm!

Emefiele is really left alone

Trial by error economic policy

CONTINUED From the ARTICLE

Oshiomhole Gets Presidential Reward
Governor Adams Oshiomhole of Edo State who has spent the last two months raucously attacking former Finance Minister, Ngozi Okonjo-Iweala and casting aspersions on the Goodluck Jonathan administration has finally been rewarded by the federal government. The emperor of Edo has been pestering Okonjo-Iweala to explain all manners of completely wild and unsupported figures, ranging from $30 billion, $20 billion, $2.1 billion, N720 billion and now $1 billion. Well, he got his reward on Tuesday with Buhari asking the National Assembly to approve for his regime, a $75 million (about N15.75 billion) credit facility from the World Bank. The bank had approved a Development Policy Programme (DPP) for $225 million (about N47.25 billion) for Edo in 2012 and the programme is to be implemented in three tranches of $75 million per annum.

The first tranche was approved by the National Assembly in 2012. Buhari’s letter said the DPP had since been successfully implemented by the state in 2014, and the bank’s board of executive directors approved the second tranche. What is now left is the endorsement of the federal government and the National Assembly to access the 2nd tranche. The emperor of Edo State has now jumped the Buhari hurdle, thanks to the “good job” he is doing for the regime. What I find funny in Buhari’s letter was the note that the key objectives of the DPP were already beginning to yield fruit in terms of increased influx of private investments into the state, increased private sector employment opportunities, and increased internally generated revenue. Haba! All these achieved in Edo State? I am sure that many in the state will be shocked by these assertions.

Goodluck Jonathan policies should not be thrown away. Some are good. Govt should open a manufacturing and industrial village with 24hrs light. List items that are imported massively, train graduates on how to produce these goods for about 7mths then import machines to produce these items with technical experts from china who can train on how to use them . Three billion dollars can solve these over dependence on imports, if govt is serious. Anyone that is ready to manufacture should be entitled to single digit long term pay back loan.

Continued from the article


Corruption Allegations against Ibrahim Shema
Governor Aminu Masari of Katsina State has been all over, shouting that his predecessor, Ibrahim Shema stole the state dry. Masari says he has “concrete evidence’’ to drag his predecessor, before the EFCC to recover the stolen funds. The figure Masari has been parading is frightening. He is alleging that Shema had misappropriated over N76.6 billion collected as excess crude oil allocation and diverted over N7.5 billion into his private pocket. He also alleged that Shema and other top government officials connived and faked used receipts to divert over N750 million earmarked for spending on drugs for local government councils.

The list of alleged atrocities is so long. Masari wants Shema to return the “loot”; else, he would be dragged before the EFCC. But, surprisingly, Shema has only responded saying that he was being blackmailed. This is not good for his image. Not providing facts and figures at this point in time to back his denials is dangerous. The nation is waiting to hear Shema’s story backed with facts. As for governor Masari, if you have your facts as claimed, please put them before the EFCC. There is no point showboating.


Governor Ikpeazu and the Ukasoanya Challenge
A Peoples Democratic Party Board of Trustees member from Abia State, Chief Tony Ukasoanya has mentioned a frightening figure which he alleged that Governor Okezie Ikpeazu collects monthly as Security Vote. He puts it at “close to N1 billion”. This figure is apparently ridiculous. The second story in town on the issue is that Ikpeazu takes home N500 million monthly as security vote. The challenge now is for Ikpeazu to tell the good people of Abia State how much he collected in June and July as Security Vote. He must be transparent in this direction. Then, two, if Ikpeazu is really interested in developing Abia State as he claims, he must immediately stop this illegality called Security Vote and leave the ignominious club of governors who are duping their states through this illegality.

Not going to work.

onatisi:
CONTINUED From the ARTICLE

Oshiomhole Gets Presidential Reward
Governor Adams Oshiomhole of Edo State who has spent the last two months raucously attacking former Finance Minister, Ngozi Okonjo-Iweala and casting aspersions on the Goodluck Jonathan administration has finally been rewarded by the federal government. The emperor of Edo has been pestering Okonjo-Iweala to explain all manners of completely wild and unsupported figures, ranging from $30 billion, $20 billion, $2.1 billion, N720 billion and now $1 billion. Well, he got his reward on Tuesday with Buhari asking the National Assembly to approve for his regime, a $75 million (about N15.75 billion) credit facility from the World Bank. The bank had approved a Development Policy Programme (DPP) for $225 million (about N47.25 billion) for Edo in 2012 and the programme is to be implemented in three tranches of $75 million per annum.

The first tranche was approved by the National Assembly in 2012. Buhari’s letter said the DPP had since been successfully implemented by the state in 2014, and the bank’s board of executive directors approved the second tranche. What is now left is the endorsement of the federal government and the National Assembly to access the 2nd tranche. The emperor of Edo State has now jumped the Buhari hurdle, thanks to the “good job” he is doing for the regime. What I find funny in Buhari’s letter was the note that the key objectives of the DPP were already beginning to yield fruit in terms of increased influx of private investments into the state, increased private sector employment opportunities, and increased internally generated revenue. Haba! All these achieved in Edo State? I am sure that many in the state will be shocked by these assertions.

This is part of the change agreement, attack the past administration and get rewarded.

But if the people of Edo state are comfortable with mortgaging their future generation unborn, what's by business

They can enjoy yhe money with Oshiomole and Iara while the generation unborn pay for it.

naija is a simple complex complicated discombobulated country.

I'm reserving this space for the only APC Economic think tank on Nairaland to tell us the short term and long term effect of this policy
Guess who?





Ngeneukwunu the Economist

Trailblazer1:

This is part of the change agreement, attack the past administration and get rewarded.

But if the people of Edo state are comfortable with mortgaging their future generation unborn, what's by business

They can enjoy yhe money with Oshiomole and Iara while the generation unborn pay for it.

bros the matter tire person oooo

Great article. Instead of adopting cosmetics measures to upgrade the value of the naira, the government should take advantage of the current inflation rate to consolidate and boost Nigeria's manufacturing capacity. Nigeria's goods will be more competative against our international rivals. There's no point revaluing the naira when the entire economy is import dependent. The more Nigeria produce and exports, the better for the economy, and the fastest way to make Nigeria an economic power house is Real Economic Federalism.
Unless there's a deliberate policy aimed at decentralising economic activities within the country by way of Real Economic Federalism where every state in Nigeria will have total access and control of their God given resources to develop at their own pace while contributing little to the centre, Nigeria will continue to wallow in Mono Economic Syndrome.

major466:
Great article. Instead of adopting cosmetics measures to upgrade the value of the naira, the government should take advantage of the current inflation to consolidate and boost Nigeria's manufacturing capacity. Nigeria's goods will be more competative against our international rivals. There's no point revaluing the naira when the entire economy is import dependent. The more Nigeria produce and exports, the better for the economy, and the fastest way to make Nigeria an economic power house is Real Economic Federalism.
Unless there's a deliberate policy aimed at decentralising economic activities within the country by way of Real Economic Federalism where every state in Nigeria will have total access and control of their God given resources to develop at their own pace while contributing little to the centre, Nigeria will continue to wallow in Mono Economic Syndrome.

don't bother yourself. Apc and tinubu says buhari is on 3 months honeymoon

onatisi:
don't bother yourself. Apc and tinubu says buhari is on 3 months honeymoon

More excuses will be concocted soon.
Today; Buhari is on honey moon. Tomorrow; Buhari is not god.
Very sad indeed.

It's going to be a long way
anyway check my profile is all the deal for now

Emefiele is the wrong person for the job!

The structure of government in nigeria is designed for consumption and sharing rather than production,development and wealth creation