₦airaland Forum

How Buhari’s Economic Policy Is A Petri Dish For Corruption [New York

by Walter Lamberson | New York Times

The collapsed price of oil is putting pressure on oil exporters around the world, from Canada to Kuwait. But perhaps no country is less prepared to survive prices at about $30 a barrel than Nigeria, which until a few years ago relied heavily on petroleum exports for its revenue. While countries like Saudi Arabia and Russia have saved past oil profits for rainy days, Nigeria has no such insulation. What’s worse is that Nigeria is especially dependent on imports of basic goods.

The cracks are starting to show: While the official rate doesn’t reflect it, Nigeria’s currency, the naira, is the world’s worst performing this year.

The economic troubles could hardly have come at a worse time. Last year, Nigerians elected Muhammadu Buhari as president after he ran on a zealous anti-corruption platform. Unfortunately, Mr. Buhari’s insistence on maintaining the peg at the current official exchange rate is not only crippling production, it is also encouraging corruption. He should abandon it as soon as possible and allow the naira to devalue.

Nigeria has pegged the naira to the dollar for decades, adjusting the exchange rate according to international supply and demand. But even as Nigeria’s economy has faltered, since last spring the peg has remained fixed at around 198.5 naira to the dollar. This rate is being maintained at the president’s insistence, undermining any notion of central bank independence.

To keep the rate fixed, the central bank has to preserve its foreign currency reserves, a difficult task as oil export revenue has fallen. How does it do that? By making it more difficult for Nigerians to obtain hard currency at the official rate. Primarily, the central bank has restricted access to foreign currency to importers who can demonstrate that the goods they’re bringing into Nigeria are necessary.

But Nigerians are innovative. A large parallel currency exchange has taken shape, in which importers trade naira for dollars at up to twice the official rate. The trade is too blatant to be called a black market. Last month, for example, I saw several currency exchange businesses at the Lagos airport that offered 380 naira to the dollar. Nigerian newspapers even include reports of the unofficial exchange rate.

The Buhari government hopes that the fixed exchange rate will prevent inflation. Yet inflation has risen sharply to the highest rates in almost five years. The prices of many imported goods have almost doubled, suggesting that they reflect the black market exchange rate rather than the official rate.

I recently saw this problem firsthand when I visited one of the country’s largest manufacturers of cardboard box packaging. Its production lines were either slowed or shut down. Thousands of employees were seeing their hours, and wages, cut back. In some cases, the company had been unable to import materials like labels. In other cases, the company’s customers had run out of items to box.

This is how bad policy turns a currency crisis into a recession.

What’s more, rationing foreign currency creates the wrong type of competition. As imports become more expensive, Nigeria’s companies should be looking for new ways to produce with fewer imports. They’re not. Instead, businessmen are trying to use their political networks to compel the central bank to sell them dollars at the low official rate, to deny dollars to their competitors, or both. The Economist recently reported that bank officials levy a 30 percent charge for the favor. Not only are these schemes a bad use of entrepreneurial cunning, they also undermine hopes for the corruption-free Nigeria this president promised.

Buhari says that devaluing the naira would hurt too much, that the imports on which Nigerians depend would become expensive, and rising prices would damage households across society. Usually, the pain of devaluation comes with a silver lining of promoting exports. But Nigeria hardly exports anything other than oil and gas. In fact, it often can’t produce what it needs for itself, even goods it should be exporting, like cereals and gasoline. In other words, as Mr. Buhari notes, devaluing the naira would bring about the worst effects of a weak currency, inflation, and provide none of the best, like increased exports.

Buhari must be frustrated. His predecessor, Goodluck Jonathan, enjoyed oil prices over $100 for most of his presidency and oversaw some of the highest government revenues in Nigeria’s history. He also issued three bonds on international markets in favorable global capital markets. Conditions at the time were excellent for building Nigeria’s domestic production capacity.

Mr. Jonathan also presided over a systematic looting of the public coffers swollen by borrowing and the oil surplus. In his presidency, over $20 billion is said to have vanished from the national oil company. The rest of the surplus expanded government payrolls, especially in the run-up to elections, and funded questionable building projects, often never finished.

Buhari’s administration has proposed a sensible budget, issued plans for incentives to invest in agriculture and mining, and is seeking investors to build more energy infrastructure. But none of these plans will be possible if the government maintains an artificial exchange rate. If Mr. Buhari really wants to build credible and transparent institutions, he should start by giving the central bank the independence to manage the currency and foreign reserves and get it out of the business of deciding what goods can and cannot be imported, or which firms can obtain foreign currency.

Buhari has loudly proclaimed his commitment to fighting corruption. But his view that he can protect Nigeria’s economy from global macroeconomic headwinds through an exchange rate peg borders on superstition. He has been told that his anti-corruption campaign is not an economic policy, but he may be more interested to hear that his economic policy is a petri dish for corruption.

Walter Lamberson is a senior project manager at Dalberg Global Development Advisors and an adviser to emerging market businesses and governments.

The opinions expressed in this article are solely those of the author. https://thewhistler.ng/story/how-buhari-s-economic-policy-is-a-petri-dish-for-corruption-new-york-times

This is an eye for an eye so the whole world can go blind.Fayose is serving APC in their own coin and they should swallow his bitter pills without squeezing their faces.What goes around come around.

If what you type up there really transpired between you two.you deserve more than what you got from him.Uncultured generation.

Agents of CHAIN (EFCC and DSS).The pendulum has shifted from Members of PDP and any associates to the last adminstraction to any INEC official who per took in the last election in a PDP state.The picture is getting clearer by the day,no willingness and conviction to fight corruption in its true reality by this Apc adminstraction but the use of government parastatals to fight perceive enemies to the advancement of the BROOM spirit(CHAIN).This is something we all must stand up to resist else the BROOM spirit will swallow us all.

This is what you get when you don't have anything to offer in governance and you become scare of your own shadow.Apc in Yobe might be in abysmal performance thus is scared of any good gesture that might unseat them come next election.However,public institutions are own by all not by any particular political party.Any good gesture from any person irrespective of political divide should be welcome.This will help to improve public infrastructures by extention benefit the pupolace who voted politicians into power.
Apc stop this CHAIN administration and draconian leadership feel with hate and bitterness.

TUC to FG: Fish out killers of Uniport student
.By Jimitota Onoyume PORT HARCOURT—TRADE Union Congress, TUC, has called on the Federal Government to institute a probe to identify killers of a student of the University of Port Harcourt during Monday’s protest against reported increase in tuition fees by authorities of the university. UNIPORT protest. Meanwhile, the Rivers State Police Command, yesterday, insisted that none of its men shot any student during the protest. Spokesman of the command, Mr Ahmad Muhammad, said information available to him was that the police used minimal force to restore normalcy during the protest. TUC, in a statement by the Rivers State chapter Chairman, Mr Chika Unuegbu, said that all Nigerians of good conscience should condemn the brutal killing of Monday. He said: “The TUC, Rivers State, condemns in its entirety, the unwarranted killing of a student of the University of Port Harcourt during a peaceful protest. We are worried that if these unarmed protesting students could be killed in cold blood, then there is no guarantee that protesting workers or citizens will not be killed. “We call on the authorities of the University of Port Harcourt, the Rivers State Commissioner of Police, the Inspector General of Police and the Minister of Education to as a matter of urgency identify and prosecute those who killed the student. We note that students all over the world have the right to protest. And as a matter of fact, the right to peaceful protest is protected by the Nigerian constitution. “We want to state categorically that if after 14 days our demand is not met, we shall convene an emergency TUC State Council meeting and invite the State Council to take a decision on this matter including the decision to withdraw the services of all our members in Rivers State. “We appeal to all parents, civil society organisations and people of good conscience to rise up against unwarranted and cold blooded killings in the country.”

Read more at: http://www.vanguardngr.com/2016/04/tuc-fg-fish-killers-uniport-student/

Ok

When we learn to face the Dragon confronting us.we will realise how to liberate ourselves from our common enemy of this CHAIN administration.
An old man as our leader without wisdom is disruptive of progress.Buhari need to be schooled on leadership prowess.It goes beyond sitting down to sign documents and globe-trotting.It's demand active participation in governance not looking for a scape goat for your adminstractive inadequacies.

Bravo,this was supposed to be the catch.Create a confusion among them to occupy them with it.Pitch members of the house among themselves and the people against the representatives at the national assembly.Why the sufferings of no light,no fuel will be forgoting.That not withstanding,the incompetence of this adminstraction stings.
What border me most is abinito non inclusion of the Lagos-calabar rail line project even when there was opportunity to include it after the dissapperance of the budget.GEJ had these projects in mind before leaving office.So the idea was at the public domain waiting to be utilized.That of Lagos-kano was not forgoting in error but Lagos-calabar was hurriedly omitted in error.
Somebody must be blamed for every executive nonchalant,incompetence,lack of direction and,adminstractive inadequacies.
The national assembly members from the south-south and south-east are supposed to box their northern counterpart to make them include the rail project that was abinitio not included into the budget.The south west wouldn't benefit from the project thus are absolved of their involvement in the struggle for the coastal rail project.By extention,the south west suppose to have a dual benefit from the projects.since it will linked their region to the north (Lagos-kano rail line) and the south south and south east.(Lagos-calabar rail line)
When we learn to stand up and face the Dragon confronting us.Then we will learn to be liberated from this CHAIN adminstraction.
The southern part of this geographical entity call Nigeria are the worst hit by this divisive tendency of the northerners.This is a deliberate attempt to continue to Lord over them. (the southerners )

The current national assembly is dominated by Apc and the government at the centre is an Apc government.Starting from the submittion of the budget down to the consent of the president,the whole thing has being filled with confusion.This budget has gone down in history has the most talked and controversial budget with incompetence,cluelessness and ineptitude displayed.
This same budget got missing for God knows why and all the abnormalities were not still corrected.When it was facing defence by various ministries,it was grossly padded.Now some portion of the budget was deleted and someone when defending the budget before the General house did not discovered the problem but subsequently submitted the discovered problem to the transport committee for approval.God how did we find ourselves in this mess?
The controversy is on going,no body wants to take responsibility for their short comings.The gullibles are buying in to the calculated confusion created by the budget.Forgetting the legislature is supposed to serve as a check to the executives not a rubber stamp assembly.The national assembly members are being targeted to pitch themselves against each other.Some citizens are perceiving the assembly members as the true enemies of the state.The executives are being absolved of their incompentence in preparing and defending a simple budget.The ripples effect of all this saga is hunger in the land,hardship,inflaction,no light,no fuel and the General sufferings of the populace.The insensitivity of the president to the plea of the people is more annoying
Apc was a bad choice and their Incompetence,directionless,confusion Laden executives stings.

Apc dominate the national asembly and the government at the centre is an Apc government.From the submition of the budget to giving of consent by the president had being filled with confusions.From the above text message sent by the chairman of the committee on appropriation.It was obvious they were envisaging problems from the executives and was intimating its members to brace up to defend their actions regarding the budget.In a balance democratic setting, the legislature is suppose to act as a check to the executives and not a rubber stamp assembly.This is what is playing out in the curent budget wahala.
The obvious in this whole saga is,the executives want a rubber stamp legislature thus want to pitch the legislatures against each other and the Nigeria populace.By extention black mailing them to do their bidding.However,the legislature's want to be independent and carry out their statutory responsibility without executive interference.
Choosing Apc was a bad choice.They were conglomeration of aggrieved individuals with evil intention of wrestling power from PDP and carrying out their iñdividual selfish interest.

Why is it that when a news emanate from one quarter,the Apc media house will come out with their own version of the news to counter the other news.Confusion everywhere

mrvitalis:
The only protests any sensible southern Nigeria should do is against there senators and HOR members.. .... But trust me they won't.. . Even the foolish tweeter senator has gone mute

After all Rivers people say Jonathan(that accepted he did nothing in 6 years ) is far better than ameachi (their son that transformed Rivers State )

The way south south people reason.. . Still need to be researched on

This Diobu man always amaze me with your line of reasoning and assertion.The economic hardship you are facing presently at Diobu area of portharcourt is different from what other people are facing in other part of the country.The no light,no fuel situation in the country is not a cause for alarm but the Lagos calaber coastal rail is your priority.Beside senator John Enoh from Akwaibom and ogheneh from Lagos,all of PDP had express their shock over the removal of the coastal rail.So what is your fuss.

The new initiative for credible leadership,hmmm.This is amazing,so many ghost group on the pages of news paper.why would Buhari support Wike in the rerun election in preference to his party APC. Thing before your make unfounded accusations NICL.The present economic hardship turbulence in the country does justify protest from any part of the country.If that will make the tourist president to sit at home and administer governance.The insensitivity of the man Buhari is what marvel me more.

Ok

Apc adminstraction always amaze me with their antics.Their lack of directions,incompetence,cluelessness to governance is what really beat my imagination.Their supporters who were in hibernation as a result of economic hardship the country is passing through due to Apc mal-admintraction.Had suddenly found their voice in supporting this calculated confusion created by Apc NASS members and the executives. It is obvious APc got no economic plan to alleviate the sufferings of Nigerians.How can one explain the deliberate confusion facing the passage of this budget starting from the missing of the budget,to padding of the budget,to non submission of budget details down to removal of certain projects and the refusal of the president to give his consent.Apc has the majority of their members both in upper and lower chamber of the national assembly both still find it difficult to resolve this budget issues.
Please lets not be deceived the legislature and the executives have a grant plan together. The delay in the budget will be an excuse why Apc couldn't perform after one year in office.
PDP NASS members from the south had giving their own stand regarding the removal of the Lagos calaber coastal rail.They are shock at the removal of the project.The chairman of the committee on appropriation is an Apc member thus should be working for his party and not anti party equally gave his own side of the story.There was no such project in the budget.The confusion continues.This time GEJ wouldn't be blame for Apc ineptitude but the NASS.Naija fear change,the bible says.

Abdul Suleiman,the writer of this piece was so unfair to himself and the true reality of events in Rivers State.He was writing this piece to suite his intent of deception,lies,deceits and distortion of informations.
Presently in Rivers State,everybody is happy they choose Wike as their governor and no body is regreting their choice.presently,Rivers state is peaceful,everybody is going about their daily activities without fear.Any other social vices happening in the state is as a result of the current economic hardship in the country Cause by the APc government at the center. spare yourself the pain of writing this rubbish.
Dating back the insecurity in Rivers state with Amaechi inability to secure chairman of Nigeria Governors forum is something born out of figment of your imagination.Telling us wike gangster himself into winning PDP governorship primaries in 2015 is a blantant lie cause their was election and Wike won the election and the reconciliation process was a success,that is why the political juganaut in the state are supporting him.2015 generation election was won by Wike,supreme court subsequently upheld his election.To back up his presence in grassroot politics in the state,the rerun election was a confirmation
Wike is the chief security officer of the state,yes but the consistent change in the CPs and DG of DSS,the side taking of the military in intimidating,molesting of Rivers indigenes IS contributing factor to the unrest in few parts of the state.As a reminder,Wike never said people coming to do election in Rivers state should write their will rather people coming to rigged election in the state should write their will.Stop distorting information Suleiman.
Finally Suleiman as a reflection to 2011 post election violence,more corp members were killed owing to one man inciting statement than Rivers state election. So what is the fuss about the regretted death of Samuel Okonta.Bury yourself in shame and stop this deceitful and deceptful article.Rivers is PDP and PDP is Rivers.

Gbawe,the above commends your dropped is something born out of your personal frustrations and utter dissatisfactions on the scheme of things from the APC lead administration. The truth be told,Apc disappointed their supporters and the harsh economy of the day is bitting hard on everyone including Apc supporters.
Excusing your frustrations on PDP 16 years of rule is non justifiable.It was never as rough as this when PDP was at the centre.2008,NIGERIA face similar dwindling in oil price but we never had it this tough and rough.Nigeria is not 16 years old,so PDP is not the only party that rule Nigeria since 1960.
Best bet,go on silence mode than coming to defend the defenceless.

This is not just telling the doctors to be patient with you but to give a permanent solution and rest to the unrest among health workers.Let their be a clear cut demarcation between the doctors and other health workers.The almagametion of aggrieved health workers in the name of JOHESU to fight against the doctors should be looked into in all ramifications.
From the days of Hippocrate,the father of modern medicine.The creation of other allied medical proffessions was to be a helping hands to the doctors.The conflict of interest of leadership tussle among health workers is born out from share greed,jealousy and a feriority complex syndrome.It pains to see a butterfly wanting to be called a bird.

Ali Modu sherif,Apc can't give what they don't have.What they lack is governance but have in abundance propagandas and deceits.Let me draw your attention to Apc antecedents since May 29 2015.A bad antecedents.
They were not able to form a cabinet.They blame PDP for giving them voluminous handover note to read.In addition,they wanted to source for angels as ministers.
They presented a budget that disappeared and reappeared.The budget of change that turns out to be budget of corruption padded with bugous figures.Let's blame technocrat in the various ministries and look for escape goat to sack in the media while they still retain their job in reality.
The INEC under their watch is running inconclusive elections.They are yet to take responsibility though still waiting for who to blame.
There was zero megawatt of electricity, a record breaking occurrence in The history of mankind.Apc blame pipelines vandals and the citizens for not taking arms to protect the pipelines.
There is recalcitrant fuel scarcity and people are suffering with no hope of When it will end.They are blaming PDP for not making Nigeria a paradise devoid of fuel scarcity before hand over of the country for them to rule.
APC when will NIGERIANS start feeling the impact of government presence in the country?The sufferings are bitting harder and no one is doing anything to save the day.
Naija is on autopilot. Bad enough on reverse mode.

I think somebody had undergone brain transplant thus is thinking/talking like a toddler without shame.I was thinking Apc had past politics however is doing governance.
A Wise man identify a problem and find a solution to the problem.A foolish man dwells on his past failure while the future suffers.
Asiwaju Ahmed Bola Tinubu Nigerians are tired,suffering,hungry and frustrated in this CHAIN adminstraction.PDP currently is not in power and not the problem of Nigeria but Apc.APC directionless,lack of policies,cluelessness,incompetence and ineptitude is killing Nigerians more.

Brother,your problem might be organic rather than inorganic.Do you normally have the early morning spontaneous penil ERECTION or midnight penil ERECTION ? IF yes,then your problem is organic.Irrespective of the test you have done and the outcome of the results.You still need proper evaluation.You can do a scrotal ultrasound to check if you have any varicocele and as well the outlining of your reproductive tract to check for any abnormalities.
Psychology might be a factor.work on your psyche,try to fantasize about sex and how enjoyable sex can be.Eat enough of fruits and vegetables.See sex as something to be enjoy and talk rough sometimes with your partner.Bury your past experience with sex and forge ahead.
Stress and anxiety are strong factors that can impede your sexual performance.
Regular sex will boost your libido and confidence especially with your kind of woman.

Strong men without wisdom are disruptive of progress.
Strong institutions is what we need not a dictatorial directionless,ineptitude leader.

This is what you expect from a president who rule his country from diaspora.He is busy celebrating the sycophanic praises from Barack Obama and John Kerry.Who are not having a pitch of what Nigerians are suffering in this chain adminstraction.
NNPC is undergoing it own change.When the little revenue accrued to the country is not duly remitted by NNPC and no body is called for questioning.Then what we are touching is the hand of Esau but what we are hearing is the voice of Jacob.Naija be wise.

Yes,the looter of the treasury has hijacked the criminal justice system just like the proving looters like Rotimi Amaechi,Fashola,Bola Tinubu, Atiku Abubakar,Timipre Sylva had hijacked the anti-graft agencies.
Femi hide your face in shame,when your likes celebrate the lopsided fight of corruption by this adminstraction and the continuous intimidation and molestation of any vocal critics of this adminstraction.

Whoever came up with this deception is aim at deceit,the usual Apc antics.I am a regular user of that road when plying portharcourt to owerri.GEJ awarded the contract of that road construction
Rochas has no hand in the construction of any part of that road.The work on that road started before 2015 election,that was aim at wooing the south east to vote for GeJ.The road construction was done in parts.The construction started from the concord axis of owerri and got halted at Ohaji almost after the imo state polytechnic.The other axis of the road was under demolition of few houses for expansion of that road.THe only governor that contributed a little to that road construction was Rotimi Amechi of Rivers State.He constructed the Elele axis down to some kilometres before umuapu.So stop giving Gej project to Apc government.This was one of the Gej project in the south east,Buhari refused to review.Another Gej project is the Umuahia road of portharcourt,Aba,enuguroad.

The monetary policy of this adminstraction is a complete failure.Why would the government place forex restriction on goods and products the country is not self sufficient on.Why not place a complete band on goods the government felt is an embarrassment to import than forex restriction on them?Federal government should relax some of it monetary policy and watch how the sufferings will be alleviated.

Hahahahahahahah @Jummai Samuel pukat.Nothing person no go see for this Rivers state election Mata.Poverty,joblessness is the cause of this restivenesss.

NgeneUkwenu:
APC had two state house assemblies seat already, before the election..

Add the Akuro/Toru and Opono/Nkono that have been declared, you get four Seats...

Minimum Target of APC: 10 House Of Assemblies Seats (enough to Impeach wike)

3 Federal House seats

1. Senatorial Seat..

why is it that Apc and their supporters are prone to deceit.PDP already have 20 state house of assembly members and hope full of winning more.
For you to impeach Wike with your imaginable 10 Apc members.You have to work hard.Cos for the house,we get niggers,no client go wan Bleep up.All Apc members go cool like ice wata for the house.Any one of them (Apc) wey Bleep up,we go tie am rope,throw am inside Abonnema wharf wata side,watch them float.So shody pack well,we full ground remain,no shaking tree.we mount mosco road dey wait for Apc antics.

Nigeria is gradually turning into a failed country of anarchy with attending consequence of crises.How can one explain the persistent terrorizing and intimidating of members of opposition house of assembly to impeach their governor against their wish?when,is it a crime for a Governor to stand out and tell the government at the centre all their ineptitude,cluelessness,directionless, and draconian system of leadership that has being bringing hardship to Nigerians populace?Instead of APC and Buhari to focus on how to curb the sufferings of people queuing for fuels at filling stations,the epileptic power supply,incessant kidnappings,arm robbery,high cost of living and General sufferings of Nigerians.They are busy chasing shadows.Nasi el Rufai,Rotimi Amaechi,Muhammed Buhari, Bola Tinubu,Bisi Akande et al were worst at making provocative crititsms during the last adminstraction.No body intimidated or invited them for questioning.Apc stop draconian system of governing and do the needful to alleviate our sufferings.

Amaechi you are more shameless to still take up the podium to talk about the death trap monorail and a conduit of syphoning #45b of Rivers money.Of what use is a monorail that run from UTC junction to Lagos bus stop(1.5km) to Rivers indigenes..A distance that cost #50 in a public transport.You built a primary health centres with no equipment, no nurses and doctors and you are proud to mention it as an achievement.The only functional secondary health centre built by you (Kelsey Harrison hospital) can't be assess by the pòor due to high cost of their services.You were owing teachers several months of salaries in the so called model primary school you built.It was wike who finally paid them those salaries.
So whatever legacies you laid was rubbished by your vindictive attitude you exhibited towards Rivers indigenes because.They refused to join your broom waving witch/wizard party.
Go and appeals the gods of the land cos everybody in Rivers State including the sand in UBIMA had placed curse on you.Due to the on told hardship you brought upon Rivers indigenes when you pitch tenth with strangers from across the Niger.