Connect with us

Opinion

CBN And The Furore Over Forex

Published

on


By Bala Ibrahim.

As President Muhammadu Buhari arrived in the USA, where he is expected to address the 76th General Assembly on Friday, one issue begging for attention at home is the hue and cry over the exchange rate of the naira against other foreign currencies, particularly the American dollar.

Since penultimate week, when the Central Bank of Nigeria, CBN, banned the sales of foreign exchange to Bureaux De Change, BDC, the financial market situation has been visited by anger and anguish, as the move is apparently pushing the naira into an unprecedented free fall.

The CBN announced the ban, after it accused the BDC operators of fraud and round-tripping, the result of which is making the currency to fluctuate in value.

The naira fall has fueled price instability in the country, because most businesses rely on the black market for dollar sales, despite the fact that the CBN said commercial banks have been directed to meet all legitimate requests.

While the CBN is accusing the private financial practitioners of sabotage, by talking tough and pointing accusing fingers at one Oniwinde Adedotun, founder of AbokiFX, a web platform that reports movements in the foreign exchange market, as being responsible for the sliding of naira against dollar at the parallel market, AbokiFX is furiously denying it.

The CBN is insisting on recognizing only one exchange market, the Investors and Exporters window, as stated by the Governor, Godwin Emeriele. “The only exchange rate market is the Investors and Exporters window, which is the market that we expect everybody that wants to buy or sell dollars should use,” said Emefiele.

But forex observers and those familiar with the financial market are putting the blame on the CBN Governor, whom they accused of mismanaging the system and misleading the government, through fraud and the introduction of the multiple exchange rate.

In April last year, Nigeria had more than five exchange rates. The CBN’s official rate, which the government uses, the NAFEX rate, which is used in the Investors and Exporters (I&E) window, two Secondary Market Intervention Sales (SMIS) rates, the Bureaux De Change (BDC) rate, and the black market rate.

This was changed to the dual exchange rate, which was created and made to work in a way that keeps the naira at a fixed official exchange rate and a separate floating rate applied to specified goods, sectors or trading conditions.

The financial experts say the multiple exchange rates are discriminatory in nature. If there is an over-all depreciation of currency, the adverse effect is widely spread over many commodities, and that is precisely the position of Nigeria today.

Another disadvantage of the multiple exchange rates is that it allows cheap imports from abroad, which affects domestic production, as is evident in recent days, where inflation is hitting every sector of the Nigerian economy. Prices of goods have gone through the roof everywhere in Nigeria today.

The proliferation of black marketing in Nigeria is also attributed to the multiple exchange rates, which is encouraging arbitrage, as the foreign exchange is bought at a cheaper rate from the CBN, mostly given to cronies and fronts of those in charge, and sold higher at the black market.

Apart from the wastefulness of the multiple exchange rates, it also leads to large stock¬piling of exportable goods in anticipation of more favorable reclassifications of some of them, resulting in the accumulation of inventory stocks.

As PMB is scheduled to have high level meetings and bilateral discussions with different world leaders and representative samples at the General Assembly, to discuss issues of common interests, one challenge he would face is the question of how far Nigeria has gone in the fight against corruption, the paramount problem he promised to fix.

Nigeria must change the narratives in order for the world to believe in it’s global vision, and there is no better time to demonstrate the seriousness of the President to the world than now, by arresting the scourge at the CBN, the apex bank of the country.

Reports have it that before his departure to America, the President had directed the Economic and Financial Crimes Commission, EFCC, to investigate the CBN on its foreign exchange policies. Good.

For long, the CBN Governor, Godwin Emefiele has been accused of running policies that are undermining the economy and running at cross purpose with the economic ambition of the Buhari administration.

From 412 to the dollar few weeks back, the naira is now heading for 600, courtesy of Emefiele’s economics, which looks clearly incapable of restoring the strength of the naira.

The question on the lips of many is the reluctance of the President to act decisively on the Governor, despite the numerous lapses on the foreign exchange policies of the Central Bank.

Last year, the president directed the CBN not to provide forex for the importation of food items or fertilizer, but there is nothing to prove absolute compliance.

For a President that promised Good governance and anti corruption, he must act properly on the alleged wrongdoings at the CBN, by setting example, and letting the world see that he has acted.

That way, investors confidence would be restored. The value of the naira would be strengthened. And the trust, firm belief and faith everyone has on the credibility of Mr. President, would seize to be a part of the forex furore.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Opinion

The heat is on, the daggers are drawn

Published

on

By

By Adamu Aminu.

Sequel to the petition lodged in by the seven Kano, APC stakeholders led by Senator Malam Ibrahim Shekarau [Kano North] to the national headquarters to investigates the state party on what they termed as leadership failure to carry all the divergent interests along.

As contained in the 7-man undersigned petition letter sent to the national headquarter, the embattled stakeholders cried out in a foul manner of what they called empirical, underhanded, ingenuity of marginalization from all party affairs.

The stance taken by the stakeholders [breakaway members] has brewed resentments and nailed them to the cross of party outrage, to the extent of branding them with a new sobriquet as “Banza literally Bakwai” literally means as “7 inglorious bastards”

Well, this kind of political tug-of-war isn’t peculiar to the Nigerian model of politics.

A politics in Nigerian usage is publicly known not only as a game of numbers where those the majority emerges victorious, but also a game of survival, rivalry, mistrust, backstabbing, seeking for supremacy and craving for power at any cost.

This at a swords points rivalry within or among the opposition parties usually emanates as the clock commences ticking fast to the days of general elections.

The time when the incumbent power holders blindly scrambles for seamless relevance to keep one’s afloat within the fortress of power, in fear of being dumped, mired deeply under the dustbin of political irrelevancy.

While the aspiring ones will be striving to grasp the mandate at any cost – for a reason – to get a sense of bonafide citizenship within the ranks of frontline beneficiaries.

Therefore, since the party Congress is closely around the corner, the daggers are brought out of their sheath, the demarcated line is drawn.

Some questions need to be asked as follows;

a. What is the status of the embattled members who lodged in pa petition to the APC national headquarter?

b. What’s their political future if they didn’t or not allow to partake in the state party Congress?

c. What are the measures taken by the party national headquarters towards reconciliation of the breakaway members and the Kano state APC?

d. If none of the above questions was affirmative, what would be the future of APC in Kano in the forthcoming general elections?

Does it mean the two Senators and couples of the house of representatives members haves or haven’t a role to play in the bid for APC in Kano emerge successfully in the 2023 elections?

Whatever the case may be, time always came along with fair judgement.

Continue Reading

Opinion

Muhammad Usman: The Change Maker

Published

on

By

My name is Muhammad Usman, I am 17 years old and lives in Kano State. I am a Child Right Advocate, Poet, Youngest Humanitarian, Researcher,Sidra Bangladesh Ambassador in Nigeria.
My passion to humanity is driven by the menaces that Almajiri children/ Orphans encounter in life such as lack of access to education, health amenities and social welfare.

I remember when I was 12years old I always used to ask my parents about almajiri children and street children who live in my community. Some of them were my age mates while some are below my age. I always think of there future and the hardship they may encounter in their life.

I have started thinking of the ways through which I will contribute to the betterment of Almajiri children/street orphans.

In 2019 I have organized an enlightenment program with the title “Almajiri Is Also A Child” the program is aim at sensitizing people about the important of helping almajiri child and ways through which we can aid in reforming the system.

In my effort to contribute and motivate young people like me I also introduce an initiative in my school which actualized through working of enlightening and inspiring students.

Moreover, i was able to impact lives especially Almajiri children through feeding projects and education programmes. My program title “Almajiri Iftar Food”
was among the huge program that impacts 500+ almajiri’s here in Kano state.

In 28/3/2020 I realized that I can’t make change along or impact the lives of less fortunate I have to partner with some young people that have the zeal to contribute to this goal. So, I form a charity organization
called “Young Developers Foundation” this is a charity foundation that aid in helping and reviving the lives of Almajiris and Street Orphans.we are eligible to lunch a lot of projects which include: Orphans Skill Acquisition Program, Recap On Your Future Skills and many more projects.

Challenges
Lack of support from some of some of my family relatives.
Misunderstanding From Close Friends: some of my classmates and close friends are misunderstanding my aim in serving humanity. most of them believe that I just want to get fame on media and be proud of.
These and many more are some challenges that I faced in humanitarian work but one thing that always inspired me is my parents support me 100%.

Achievement
Social Media Manager @ World Voice International.
Campus Ambassador @ IMUN (4weeks internship).
Certificate Of Completion On Employee Stress And Wellbeing online course by UK SCHOOL OF BUSINESS MANAGEMENT.
Certificate On Media Journalism By Reuters.
Certificate Of Appreciation By Sidra Bangladesh.
Ambassadorship From Sidra Bangladesh.
Certicate On Critical Thinking By Educlick.
Certificate Of Completion On Business Innovation From Jobber man.
Skills
Critical Thinking Skills
Leadership Skill
Presentation Skill
Being in activism field has made me sharpen and broading my knowledge in different field.
When I feel like giving up I used to tell my mind this quote ” I can do spirit” it always ginger my mind.

I praise on my efforts, i believe that what I am doing people who are 20 years older than me can’t push themselves to do. i inconvenience myself and the several “enjoyments” youths of my age should validly be embracing.
I have amazing plan’s that I think when used will accelerate a progress to the development of my nation but sometimes when I came up of those ideas I get discouraged because the authorities that are capable of implementing such stuffs did not respond to me. just recently I have this idea of creating a software which will enhance the smooth running of many business ventures in Kano state but I wasn’t giving the right opportunity to build up the idea.

In a nutshell, this how I run my life and this is level of success that I have gotten.

Protecting the right of children and humanitarian work is an ideal which I hope to live for and to achieve. But if need be, it is an ideal for which I am prepared to die.

©Muhammad Usman
11/10/2021

Continue Reading

Opinion

Roses tinted promises, hard-hitting realities

Published

on

By

By Adamu Aminu.

The time crept so past. What’s is done, has been done. Six years out of eight is enough for the discerning to make a fair judgement.

Those who have confidence in the leadership capabilities of the present crop of leaders have many reasons to rejoiced.

While those who felt disappointed by how the polity is moulded and shapes to the likes of a few have many justifications to cry and writhing.

To the few, running an affluent living on the power corridor have every reason to think, perhaps in a self-deceptive mode, they are the luckiest and the national resources is their patrimony.

In the polity where national resources are scoops deeply by few with Caterpillar shovel and give superficially to the malnourished populace with a teaspoon.

While the majority, the sidelined, the downtrodden and the masses wallowing in penury and tribulations, which attested that commoners were not less than subservient to the dominance of the few.

Some of the key promises made by the gap-toothed leader during the last campaign to the victory include insecurity, unemployment, economic recovery, inflation and fighting corruption from stem to stern, among others.

The question is which one among the aforementioned challenges brought down to its knees within these years?

Down to the state level, most of the pledges and promises made during electioneering campaigns, are seemingly sugar-coated and merely lips-serviced.

Despite all the proclamation of resuscitation of education and health care system, none of them patronizing public schools or hospitals within their states.

Wards enrollment in foreign universities and also going for health tourism to cure even for a mild infection is what’s all about.

Where are the promises being made to improve education and healthcare that will cater for all and sundry?

Of course, the return of President Buhari in 2015 sends jittery down the spine of political pirates, which is reminiscent of his hardline brand of governance in a short-lived 20-month of his military administration.

Which indicated the Messiah has returned to salvage the nation – as he was previously seen and thought like a Tiger, feared for his nigritude in past.

But now seen as a scarecrow – frightening from afar, but harmless at the close range, just for his timidity and indolence when it comes to stamped his hammer at the appropriate time for the misdeeds.

Despite the foregoing, President Buhari still holds the trophy for being a man with integrity and transparency, who is universally known for not upholding the tenets of thievery from the public coffers.

With all the pledges he made to fight corruption in all its ramifications, but his party has glaringly become a haven for those who are overtly ambitious to elevate their self-worth.

This happens at a time, the common man is grappling to survive in a nation sandwiched between economic depressions fuelled by a deluge of debts, currency devaluation, unemployment, hyperinflation and insecurities.

Inarguably, the pledges made to deal with the scorching waves of terrorism and other forms of insecurity were at the top of the scale of preference during the electioneering campaign.

Even though the attacks were relatively subdued, but later catapulted to armed banditry in Sokoto, Zamfara, Kebbi, Niger, Katsina and Kaduna states respectively.

This has turned out to be carnage In the affected states in which dozens of people are massacre, hundreds fleeing their homestead almost daily.

While in the Southeast heightening fears resulted from security breaches from militias in were treated with a pinch of laxity.

What would be the hopes of the people from the arm-bandits riddle states, with regards to the promises to safeguards their lives and properties?

At the time, when a high-profile, glitz and glamour wedding of first Son and Bichi Princess took place in Kano, without considering to make the event low-key to mourned the innocent souls massacre by bandits.

What does that portray in the minds of the surviving victims who will think that this happened under the government of their dreamt Messiah? promises to protect their lives and properties?

And apart from that, even to revamp the economy as vigorously pledged with punching-fisted in the air during the campaign is now appears to be a mirage.

People should forget and look ahead. What wasn’t achievable in six years, can’t be achieved in less than a couple of years to come.

To be truthful, the hard-hitting reality is the majority of Nigerians are in severe poverty due to a malnourished, ailing economy.

Anyway, all that’s done has been done. Thanking God for what one’s have is the viable option, and is much better than groaning for what one’s longing for.

But, People are fed up with the brim of penury.

Continue Reading

Trending

%d bloggers like this: