₦airaland Forum

For Tinubu and his team of economists and jaundiced financial experts to have floated the Naira shows they are NOT smart. No nation survives such especially with galloping inflation. Here is where Tinubu differs from the duo of Peter Obi and Atiku Abubakar.
For me, fuel subsidies removal is not the issue. The truth is that the fuel subsidy was actually impact of exchange differentials between purchase and sale.

SOLUTIONS
I am just a critic without answer. However, Tinubu and his team may be too proud to retrace their steps now. No matter how far you have gone on a wrong route, your only solution is to reverse and follow the correct one.
My suggestions are as followd:

1. Restore the currency change by Emefiele:
We all know Emefiele sin against Tinubu was the Naira change before elections. However, Tinubu and his team reversed it. The impact is that the stolen Trillions that Emefiele tried to render useless have now increased Naira flow. These trillions are now being used to mop up available Dollars. You have a situation where too much Naira is chasing few $
Tinubu should swallow his pride and revert back to only new currency printed by Emefiele. CBN should mop up the excess liquidity. The scarcity of Naira would mean two things. Only online $ purchases would be made which are TRACEABLE and such monetary policy would reduce inflation in the short to medium terms.

2. Decide and peg exchange rate at about N1000/$. Be systematic about it.
Criminalize any speculation and sanction to any institution violating the new rate. Review this rate quarterly.
Everyone agrees that Naira has become undervalued. No nation leaves its currency to float. Even Russia that is at war with the "West" did not allow the Rubbles to float.

3. Leave pride and tribalism, appoint a new economic team. The ones there are only paper qualified persons, some parading Phds from some "fake" universities in Caribbeans. Get sound economists and accountants not those who become qualified through exchanges. If you know, you know.

4. Increase interest rates to curb excessive borrowing to fund luxury goods.

5. Reinstate the list of import items Buhari banned. Also increase import duties on all imports that have local substitutes to force the acceptance of local production or products. Subsidize diesel and not gasoline to reduce cost of production and distribution. We lack electricity, so most companies rely on diesel.

6. Impose 15% capital transfer tax (or capital flight) on all profits remitted outside the shores of Nigeria.
Make such entities to reinvest equivalence to offset taxes (tax credits) imposed year on year.

7. Reduce ministries and merge parastatals. We cannot afford more than 30 ministries. 48 ministers is insane for a dieing economy.


8. Renegotiate all borrowing and performed post-project audits for all projects "financed" with borrowed funds. Where not viable, toll the projects or sale and lease back from the creditors.

9. In the long-term, review revenue sharing formula. Make 60% of federal allocation to be shared as it is currently, then 40% based on productivity. Let states sell their products to federal government or other entities to participate in the 40% pool. Jettison 13% derivation, rather let it be based off oil exports from each state. That way, states that encourage bunkering would bear the cost. States that encourage farming would earn, while those who encourage banditry will go hungry.

God bless my country.

Reinstate Emefiele

worksmart:
Reinstate Emefiele

Not possible. Let's move forward

I have little or no knowledge as to how the economy works; so I can't say if you have made valid suggestions or not except for few I can analyze with my common sense; but your write up suggests you are a concerned and patriotic Nigerian. Let's fire on from all angles within the parameters of law and then hope the government set pride aside and make U turn.

Spot on, subsidize diesel

Only if Nigeria understood emefiele meant well for them ,my only problem with him was going into politics and contesting for president who does that.

Tinubu is a culprit in the continuous use of old naira notes hence they used it in flooding the system mopping up all the dollars and bringing us to where we are today.

At least I'm glad having someone who understood Emefiele's policy clearly like me. Besides moping up excessive liquidity insecurity was haulted that period and bandits were giving out their Naira ransoms back to people.

https://www.lindaikejisblog.com/2023/1/iswap-distributes-old-naira-notes-to-passengers-on-borno-highway.html

I am sure Tinubu's evonomic team know It's the best thing but they are only trying to prove Emefiele did wrong based on the need to defend their propaganda.