Naira Redenomination Is Speculators’ Antics

The issue of Naira redenomination started gaining traction on social media around September 2023. It was believed that the trending misinformation was the handiwork of some drunks in a Chinese bar”, idled, and needed to ruffle the economy’s feathers. The Central of Nigeria has denied the trending malicious story. Unperturbed though, the perpetrators retreated awhile, and recently, the malicious misinformation started gaining traction on social media. One may wonder what their motive is. No soothsayer is needed to know that economic saboteurs are at work again, but to gain what? The attack on the Naira is one of the many products of corruption bedeviling the nation. Others include untamed obnoxious taste for foreign items, and utter disdain for locally produced items (often of better quality than their foreign counterparts), mono-economy, – dependence on oil, forgetting that the foundation and strength of the economy was agriculture. Monumental legacies adorned the nooks and crannies of the country that are attestation to what agriculture did before the petrol-dollar craze. Agriculture was later neglected. The scramble for fast buck from oil till date incapacitated the economy. No effort was made to diversify the economy. At a time in the history of this economy, a regime once told the world that Nigeria’s problem was not money but how to spend it. Profligacy became the order of the day. Corruption crept in, and scrambles for power to get a bite of the oil ‘cake caused successive military coups. This was in connivance with corrupt civilians. Every successive administration embarked on primitive acquisition of wealth stolen from our commonwealth. Mediocrity reigned, leadership selection became “paddy-paddy, and merit took a flight. Some past leaders sought power for power’s sake, clueless of what to do with it. The economy was on autopilot, burdened, and still suffering from those uncoordinated and rudderless inactions. The economy has been in chains while the masses bear the brunt. The descent to this ignoble state started before1986 and became a reality with the introduction of Structural Adjustment Programme (SAP). It was the onset of gradual destruction of all economic fibers of Nigeria. A leader at the time frustratingly retorted that ‘the Nigerian economy defied all economic theories.’ Little did he know that vultures and vampires had taken over the economy, and ever since the economy has been under attack. Still the only legacy we hold onto, the Naira, is under serious threat now. They took over and destroyed all the refineries, made them non-functional despite trillions of Naira spent to fix them. They destroyed the Power Holding Company of Nigeria (PHCN),and bought them over under the disguise of privatization, leaving us with what we have today – darkness. The Nigerian Airways, and Nigeria National Shipping Line are all moribund, yet investors who professed competence and business acumen bought them. They hijacked the Nigeria National Petroleum Company (NNPC) making all refineries derelict. Fuel importation and subsidy was introduced through which the economy was sucked. No past regime had the political will to end the obnoxious regime. But since this regime took the bold decision to remove fuel subsidy and harmonize the exchange rate, the economic vampires and the vultures have swooped on the economy, baring their fangs ferociously on the Naira. While other oil producing nations are reaping bountifully from oil, building infrastructure, and bettering the welfare of their citizens, Nigeria, the 6th oil producing nation in the world is wallowing in poverty, corruption, darkness, yet its leaders are unperturbed. Those calling for the redenomination of the Naira are the faceless ‘owners’of Nigeria, attacking the economy with the main aim of wrecking it to enable them to take it over. They have gained, and still gaining bountifully from every crisis of the past.They are determined to destroy the Naira. Their grouse may have been the current administration’s gut to take away the fuel subsidy. They have the war chest – hoarded foreign and local currencies, through the BDCs they own. They are rich and entrenched individuals, using their ill-gotten wealth to attack the Naira. Their call for the redenomination is to cause disaffection between the government and Nigerians, thereby bending the hands of the government backward. When in 2006 the Republic of Zimbabwe redenominated its currency at the rate of 1,000 old Zimbabwean note to one Zimbabwean dollar, it was because of hyperinflation. The newly independent nation probably got carried away with the euphoria of independence and forgot to do the real business of governance. Things spiraled out of control, the currency began to lose value because of the taste for foreign goods, no effort to develop local capacity, and the currency suffered. The Republic of Ghana that plied same route thought it had no better option than to redenominate in 2007. If it must be recalled, Ghana’s hyperinflation between 1977-1983 hovered between 116% and 123%. The reason the government gave for taking the action was to reassert the monetary sovereignty of Cedi. The government was conscious of the fact that if Ghanaians should lose confidence in the currency and begin to embrace other foreign currencies as store of value, there will be problems. Another reason it gave was years of economic decline that took a toll on the Cedi. In fact, it was to arrest the spiraling hyperinflation that threatened the country, and to also make it easy for accounting and statistical purposes. According to the authorities, they believed it would be easier to maintain by setting 10,000 Cedis to be 1 Ghana Cedi. Has the Nigerian economic situation reached what can be compared to the Zimbabwe or Ghana situation? The answer is No. The problem with Nigeria is corruption and greed, self-centeredness, obnoxious foreign taste, and disdain for what she produces. Nigerians do not eat what they produce, nor produce what they eat. What the purveyors of this malicious misinformation set to achieve is to arm-twist the government and the CBN to do their bid and redenominate to suit their criminal desires.They are presently clueless about what the government is doing going forward

Tinubu’s reforms will rejuvenate Nigeria’s economy – SEC

President Bola Ahmed Tinubu, has been commended for the reforms so far embarked on which are meant to rejuvenate the nation’s economy and improve the standard of living of Nigerians, the Director General, Securities and Exchange Commission (SEC), Mr. Lamido Yuguda has said. Speaking during an interview recently, Yuguda said there was a 5.23% surge in market capitalization at the NGX on the President’s first day and it was driven by optimistic anticipation of market reforms. “It is a fact that there are prevailing challenges arising from demanding macroeconomic conditions, constrained consumer spending, and rising operational costs. “Despite these challenges, there remains a shared sense of optimism that ongoing rigorous reforms will rejuvenate the nation’s economy. I therefore pledge the resolute support of the Capital Market to the Federal Government in navigating these challenges for the country’s brighter future,” Yuguda said. He stated further that Nigeria had outperformed global indices on gains in the All-Share Index (ASI) and market capitalization in the first half of 2023, an indication that the economy is being reflated. He cited the exceptional performance is attributed to several factors, such as; the appealing dividend yields offered by certain stocks, the recovery of corporate earnings, and a notable improvement in sentiments among domestic retail investors.  “All the indicators reflecting investors’ involvement – including volume, value, and the number of transactions – had demonstrated consistent month-on-month increases throughout the first half of 2023,” he added. The Director General also stated that the Investments and Securities Bill (ISB) 2023 which aims to align regulations with the modern dynamics of the market is presently being considered by the 10th National Assembly and expressed the hope that if passed into law, it will enable optimal contribution of the capital market to national development. He acknowledged that the road ahead is undeniably challenging, stating that the capital market must step forward in whatever way to lend its helping hand to the current economic reforms, adding that the market must make sacrifices to help drive the economic transformation that will change Nigeria’s fortunes for the better.

Tinubu, CBN, and Nigeria’s economy

The resurgence of the Gestapo era last witnessed during General Sani Abacha’s jackboot regime is gradually staging a comeback in our democratic dispensation. Nigeria witnessed the abrasive invasion of the National Assembly by the Nigerian secret police, the Department of State Security Service (DSS), under former President Muhammadu Buhari. The President though was not in the saddle at the time, was away on medical treatment abroad. His Vice President, who acted as the President, Professor Yemi Osinbajo held sway. The Vice President didn’t blink an eyelid sacking the Director General of the agency, Lawal Daura, for the assault, and desecration of the symbol of democracy. The vice president considered the incident a misnomer that should not be allowed to fester. The northern political elite never forgave Osinbajo for that singular action. Their oligarchical chauvinism made sure Osinbajo never acted in presidential capacity till the regime timed out. Power was no longer transmitted to him even when the president was on official or medical trips. July 25, 2023, reenacted the ugly DNA of the DSS. The agency had arraigned Godwin Emefiele, the suspended governor of the Central Bank of Nigeria, in a high court in Lagos, accused of illegal possession of firearms and ammunition by the Federal Government. Recall that the DSS in November/December 2022 had declared Godwin Emefiele wanted for terrorism sponsorship. The hide and seek game came to a temporary halt after the DSS withdrew their operatives from the security details of the governor, making him vulnerable, but the former Chief of Defence Staff, General Lucky Irabor, provided him a succour, replacing his security details with military personnel. We all know it was just a temporary reprieve as those who wanted their pound of flesh of Emefiele were waiting. About a week ago, a court of competent jurisdiction ruled and ordered the DSS to either arraign Emefiele or release him from their detention. Emefiele until his arraignment has been incarcerated for 36 days. The agency, a few hours after the court order, announced that Godwin Emefiele has been charged to court. However, on the day of arraignment, the DSS threw decency to the winds, engaging a sister agency in supremacy. It was not only deplorable, but condemnable. The judge had ruled and committed Godwin Emefiele to bail of N20m and one surety with landed property within the jurisdiction of the court. The judge also ordered that Emefiele be kept in the custody of the Correctional Service pending when the accused will perfect his bail. The DSS opposed that, claiming to have been directed by ‘orders from the above’ to take Emefiele back into custody. Correctional Service personnel were disallowed from carrying out the court order, as the squadron leader of the Correctional operatives was forcefully rough-handled. It took the directive of the Comptroller General of the Service who ordered his operatives to stand down and leave the court premises to bring a semblance of sanity after securing Emefiele.  The charges against Emefiele are purely civil which does not warrant the show of force and shame exhibited by the DSS. Many non-state actors have been seen brazenly brandishing sophisticated weapons, but none has been seen treated as Emefiele. This is not defending Godwin Emefiele for whatever allegation brought against him, but the treatment meted out to a public officer of his stature, who has meritoriously served his country is unbefitting. Is Godwin Emefiele’s sins more than a pistol and 123 rounds of ammunition found in his house? Are these exhibits enough to make him a terrorist or a sponsor of terrorism? Godwin Emefiele may have erred while doing his tenure at the CBN, but the treatment being meted out to him does not justify the weight of the allegation. It is also obvious that some politicians have sworn not to forgive Emefiele and are bent on destroying him. From the bestial behavior of the DSS operatives, it was obvious that Emefiele had been marked for destruction for daring to redesign the Naira at the onset of the 2022/23 political campaigns. President Bola Tinubu while campaigning had cried foul, accusing the suspended CBN governor of targeting him for failure with the redesign. He never hid his disdain for Emefiele’s actions. Peradventure Godwin Emefiele had not dabbled into politics, would President Tinubu have felt that way? But the President on every occasion labeled the CBN as a mess under the suspended governor. He alleged Emefiele had perpetrated arbitrage and rent-seeking. It was therefore obvious; he would not work with Emefiele. Godwin Emefiele too may have probably resigned, knowing that the political class, particularly President Tinubu, viewed his Naira redesign policy as a vendetta against his frustrated political ambition, thus it is now their time to take their pound of flesh. He should have resigned immediately when President Tinubu won the election. Whether his resignation would have been honoured or not is another debate altogether. The political class should have exercised restraint considering the economic implication of what Emefiele symbolises, the CBN. How would the international investing community see us – disobedient to court rules? A CBN governor humiliated because of petty political miscalculation or skirmish? Yet, we are a nation hungrily looking for investors. The economy is on its knees, the Naira is battered, and insecurity is devouring us. Emefiele’s intransigence is inconsequential to the barrage of challenges facing the nation. President Tinubu who is acclaimed to possess a large political heart of forgiveness should thread softly about Godwin Emefiele. He promised renewed hope, and to rule Nigeria with the rule of law. The Incident at the Lagos High court was barbaric, anti-rule of law, and despotic. President Tinubu’s golden silence while the drama lasted is suspect, belying his promise. His silence affirms the saying going around now: ‘Baba so pe’, meaning Baba said so. The economy is troubled, citizens are agonised by his economic reforms. Assuaging and giving Nigerians comfort should be his paramount desire, not missteps of an individual. The show of shame by the DSS operatives, witnessed globally,