CBN - News Proof

CBN

RECESSION: Nigeria's Economy Closes To Rebound - Emir Sanusi Confirms; Hails FG, CBN On Measures, Faults Finance Minister

The Emir of Kano and former Governor of the Central Bank of Nigeria (CBN), Alhaji Muhammadu Sanusi II, among other experts in the financial services industry, wednesday backed the resolve of the Monetary Policy Committee (MPC) to retain the bench...

RECESSION: The Senate Recommend 14 Measures To Buhari To Ease Out Quickly

As the recession bites harder on Nigerians, the Senate today recommended fourteen measures for the executive at which it believed the hard times would be softened. The following are the measures recommended by the Senate 1. The executive mu...

RECESSION: The Real Causes And 10 Solid Expert's Solutions

Nigeria needs to rapidly apply solid solutions to rescue the nation from its current recession. Millions have lost their jobs – 4.6 million according to the national statistics bureau – and millions more are suffering severe hardship and dying an...

CBN Counters VP Osinbajo, Says Recession Not 100 metres Race

In contrary to Vice President Yemi Osinbajo that the current Nigeria's recession will not last long, the Central Bank of Nigeria, CBN, has asked Nigerians to brace up for the current economic recession in the country, saying that it was...

See Alamieyeseigha’s N2.8b Hotel Taken Over By Weeds; Vanity Upon Vanity ...

Diepreye Alamieyeseigha N2.8 Billion Chelsea Taken Over By Weeds In Abuja Almost seven years after the Economic and Financial Crimes Commission (EFCC) handed over the N2.8billion Chelsea Hotel to the government of Bayelsa State, the hitherto ...

BREAKING: Under Pressure CBN Cancels Bank Rates On Foreign Exchange As Naira Falls The More

ThisDay News - Following the pressure mounted by the financial markets and analysts on the Central Bank of Nigeria (CBN) to allow the naira to be truly market determined so as to attract offshore investors who have continued to remain on the side...

AGAIN, Foreign 'Cabals' Gang-up To Devalue The Naira The More

There were indications yesterday that not a few foreign interests seek further devaluation of the naira to as low as 300 to the United States dollar, if desired economic goals must be achieved. The new foreign exchange regime implemented by th...

Another Ex-Female Minister On The Run Over Alleged N3.1b Fraud In Connection With CBN, Dasuki

As operatives of the Economic and Financial Crimes Commission, EFCC, move to unveil the beneficiaries of the N3.1 billion withdrawn from the account of the National Security Adviser in the Central Bank of Nigeria for political campaig...


Showing posts with label CBN. Show all posts
Showing posts with label CBN. Show all posts

RECESSION: Nigeria's Economy Closes To Rebound - Emir Sanusi Confirms; Hails FG, CBN On Measures, Faults Finance Minister

RECESSION: Nigeria's Economy Closes To Rebound - Emir Sanusi; Hails FG, CBN On Measures, Faults Finance Minister
The Emir of Kano and former Governor of the Central Bank of Nigeria (CBN), Alhaji Muhammadu Sanusi II, among other experts in the financial services industry, wednesday backed the resolve of the Monetary Policy Committee (MPC) to retain the benchmark monetary policy rate (MPR), as well as other monetary policy tools at the end of its meeting last Tuesday.

Mrs. Kemi Adeosun, the Finance Miniter had proposed cut in interest rate as part of measure to the current recession

Sanusi also expressed optimism that the Nigerian economy was on the right path and would rebound.
The emir said this at the launch of the Nigerian Banking Report 2016 by Afrinvest West Africa Limited titled “Search for Investor Confidence” in Lagos.


The MPC held the MPR at 14 per cent, with an asymmetric window at +200 and -500 basis points at the end of its September meeting. The CBN also maintained banks’ Cash Reserve Requirement (CRR) at 22.5 per cent and the Liquidity Ratio (LR) at 30 per cent.

The decision by the MPC to retain the policy rate went against the call by the Minister of Finance, Mrs. Kemi Adeosun, who on Monday called for a reduction of the MPR in order to lower the cost of borrowing for government, individuals and businesses.

But this was rejected by the MPC on the grounds that it could worsen inflation in an environment of low productivity and could deter foreign investors who had started to show renewed interest in Nigerian financial assets, following the liberalisation of the foreign exchange market three months ago.

CBN Governor, Mr. Godwin Emefiele, said at the weekend that about $1 billion had been staked on fixed income securities by foreign investors since the central bank lifted the peg on the naira.
Sanusi said: “To be honest, when the fiscal authorities and many people in the private sector said they wanted a lower interest rate, I was concerned that the central bank would succumb to pressure. The fact that the central bank did not, shows that the central bank is beginning to reclaim its independence, which to me is a very good thing.

“I was very pleased with the MPC. In fact, I was waiting for the outcome of the meeting. When the central bank said they are not bringing the interest rate down, then I said ‘yes’, that is what I like to see. These are economic issues and you make choices.

“As an interested party and a former central banker, I can see why the central bank was not willing to reduce the interest rate at this point in time. If you lower the MPR by 100 or 200 basis points (bps), it is not going to lead to a rapid increase in credit growth. You will not see an increase in credit growth that would reverse the downward trend in output by lowering MPR by 100 or 200 bps.

“You would however further fuel inflation and you would reduce the yields on fixed income securities at a time when you are trying to attract foreign exchange.

“The immediate oxygen that this economy needs is foreign exchange and portfolio investors are important.”

He urged Nigerians to be patient and expressed optimism that the Nigerian economy would rebound.
According to him, “The last two or three MPCs ago, as far as I was concerned, the central bank got the decisions right by going to a flexible exchange rate and by tightening monetary policy.”
He pointed out that the naira is currently undervalued just like most stocks on the Nigerian Stock Exchange (NSE), but fixed income securities were offering high yields.

“Now, do we really have a flexible exchange rate? That is what we need to look at. These things require courage because some of the decisions you would take would seem to fly in your face in the first week or two.

“So, what does that tell you? If you allow people to actually come in with their dollars and sell at whatever rate, people want to buy and people see that they are going to make money on fixed income, or on equities and on currency appreciation, you will have liquidity in the market.
“Now, so long as you don’t allow that, you are not going to have the flows that you want. It is the inflow of dollars into the economy that would move the naira towards its fair value and for it to get to where you want it to be.

“It is not by fiat. The market does not accept orders. You don’t sit down and say where you want the naira to be. It would never happen because it has never happened.

“They tried that in Ghana, we have seen it in Venezuela, we also saw it in Zimbabwe. If you don’t have dollars in the system, your naira is weak, simple!

“So, the question is, how do you attract dollars? Now, are portfolio investors the final solution? No, they are not.

“But anyone who thinks that a long-term investor is going to take a 10-15-year risk in an economy where we don’t get short-term macroeconomic decisions right is wasting his time.
“You have to have the macro right. You are not going to have the IMF or World Bank or even banks invest in your bonds, because they are looking at the huge gap in macroeconomic decisions,” he added.

According to him, the past three months had been a learning process for policy makers in the country, adding that there had been a retracing of steps.

The Kano emir also expressed satisfaction that in the past few days, there had been a lot of conversation around the economy, adding that that is what is required in a nation in crisis.
“What we need to do is to understand what exactly is the macroeconomic framework within which to operate and what we seek to achieve as a nation.

“The central bank keeps high the rate of interest and it is very clear in its mind that it is keeping these rates up in order to keep yields high so as to attract dollars and with that help stabilise the currency.

“Greater inflow of dollars would help reverse step-by-step, all the missteps that had been taken in the last 18 months and get capital back.

“We need to encourage the central bank to have the courage to take that risk of implementing that document of actually going into that flexible exchange rate. Let the market work for two or three weeks and see how it will perform and you are going to have a gradual narrowing of the gap between the interbank and the parallel market rates and more liquidity in the system,” he said.
He also advised the federal government to sell down some national assets in a manner that does not hurt its strategic interest.

“We need to sell down some oil assets and sell down some refineries in a transparent manner that gives you value. You can even have the option of buying back later. But basically it helps you raise revenue,” the former CBN governor said.

Earlier, during a panel session, Prof. Pat Utomi said it had become the tradition that a new government in the country would allow things to get worse before they learn rather than building a consensus that allows the country to forge development that is sustainable.

He stated that Nigeria has a crisis of leadership. “We must be able to show a clear game plan, with some critical elements of industrial policy in areas of competitive advantage, which would be self-explanatory and attractive to investors.

“Government must be responsive to signals and not let things go out of hand before seeking out solutions and these have eluded successive governments,” Utomi said.

Also, the CEO of the Economic Associates, Dr. Ayo Teriba, pointed out that Nigeria was facing its economic challenges because of its over dependence on inflows from portfolio investors and export proceeds.

“We must learn from India that relies heavily on Diaspora remittances, which are directly invested on sovereign assets, thus providing the needed foreign exchange. We must broaden the focus, not only on foreign investors, but with confidence building policies to attract the Diasporans,” he added.

Other Experts Back CBN

Other than Sanusi and the panellists at the forum held by Afrinvest, several other international and local financial experts also threw their weight behind the CBN’s decision to leave the MPC unchanged.

Staunchly supporting the CBN’s action, financial experts and market analysts contended that the decision would ensure continued foreign inflows which, according to them, was what the country needed most at this time to pull it out of economic recession.

An economist at Exotix Partners, a leading investment firm for frontier and illiquid markets based in the United Kingdom, Alan Cameron, supported the CBN’s decision, describing it as one of the regulator’s “most sensible statement in months (and) one clear about the mandate and policy limitations”.

He believed that the naira was no longer over-valued, but rather at fair value on a real effective exchange rate basis – or perhaps significantly below (325-350 locally).

He said it would take another three to six months of high nominal yields before some cuts in 2017, if external dynamics continue to improve, noting that the MPC statement “should be confidence-building, albeit from a rather low level”.

Similarly, Senior Macroeconomic Specialist at Ecobank International, London, Gaime Nonyame, supported the rate retention by the banking system regulator.

She said the CBN could not reduce the policy rate because of inflation and could not afford to increase it because the country was already in recession.

This, she insisted, would not be desirable and encouraging to investors, who are expected to bring in the much-needed foreign currency, which Nigeria needs to get out of recession.

Also, analysts at the foreign currency trading and investment arm of Diamond Bank Plc, Uyi Ohenhen, lauded the CBN’s action. He said it was a positive development that triggered the inflow of funds into the foreign exchange market wednesday.

One of the economists that spoke with Reuters also praised the CBN for shrugging off political pressure.

“CBN’s refusal to bow to government pressure was a notable sign of the institution’s independence,” said John Ashbourne of Capital Economics.

A Senior Analyst at Delta Investments, Mr. Ken Halim, said: “The CBN’s decision was generally in line with analysts’ expectations. I would have been surprised if the CBN had cut interest rates given that the most serious challenge facing the country at the moment is the forex issue.

“Dollars are still very scarce and companies are shutting down because they can’t access FX. Cutting interest rates would have been counter-productive and discouraged foreign investors from investing in treasury bills and bonds.”

RECESSION: The Senate Recommend 14 Measures To Buhari To Ease Out Quickly

RECESSION: The Senate Recommend 14 Measures To Buhari To Ease Out Quickly
As the recession bites harder on Nigerians, the Senate today recommended fourteen measures for the executive at which it believed the hard times would be softened.

The following are the measures recommended by the Senate

1. The executive must immediately put in place leadership-level engagement platform with the private sector.

2. Government must raise capital from asset sales and other sources to shore up foreign reserves.

3. Consider tweaking the pension funds policy within international best practice safeguards to accommodate investment in infrastructure and mortgages.


4. The federal government and Central Bank of Nigeria (CBN) must agree on a policy of monetary 
easing to stimulate the economy and harmonise monetary and fiscal policies until economic recovery is attained.

5. Re-tool its export promotion policy scheme with incentives such as the resumption of the Export Expansion Grant (EEG), and introduce export-financing initiatives.

6. Engage in meaningful dialogue with those aggrieved in the Niger Delta and avoid an escalation of the conflict in the region.

7. Consider the immediate release of funds to ensure the implementation of the budget for the near short term to inject money into the economy.

8. Similarly, the agricultural sector and agro-allied businesses should be directly supported to boost value addition and jobs creation.

9. While government works on the medium to long-term plans, immediate strategies must be devised that would ease the suffering of the ordinary people across the country.

10. The legislature and executive must co-operate to ensure the passage of the Petroleum Industry Bill (PIB) into law as soon as possible to stimulate new investment and boost oil revenue.
Saraki added that while the executive is working on the recommendations enumerated above, the National Assembly should support it with the necessary legislations and oversight activities such as:

11. Accelerate bills aimed at reforming the mortgage sub-sector for growth and accessibility in a manner that deepens people’s access to housing, jobs and economic activities.

12. Work on the National Development Bank of Nigeria (Establishment) Bill 2015 which will provide long term cheaper source of funds to the private sector.

13. Quickly commence work on the amendment of the Nigerian Ports and Harbours Authority Act (Amendment) Bill 2016; National Road Fund (Establishment, etc); National Transport Commission Act 2001; Warehouse Receipts Act Bill 2016; Review of the Companies and Allied Matters Act (CAMA), Investment and Securities Act (ISA) and Customs and Excise Management Act; Federal Competition Bill 2016; and the National Road Authority. These bills and some of the other economic reform bills will be considered in the coming days.

14. Explore the possibility of backing certain key government policies with legislations that have time limitations. This will help give confidence to investors to go into certain areas of the economy and invest without the fear that such policies will suffer reversals and loss of investment.

RECESSION: The Real Causes And 10 Solid Expert's Solutions

RECESSION: The Real Causes And 10 Solid Expert's Solutions
Nigeria needs to rapidly apply solid solutions to rescue the nation from its current recession. Millions have lost their jobs – 4.6 million according to the national statistics bureau – and millions more are suffering severe hardship and dying and at risk of death. The further down Nigeria sinks, the steeper will be the climb out of the hole.

Sadly, most of what we read from so-called economic experts is advice for the Nigerian government to consult them or others to address the economic recession. None of them has opened up in the public space, if they have the ideas, and proffered the solutions to the current economic quagmire. They keep talking like it’s some sort of riddle and as though Nigeria is not their country and they are not part of those who got the nation where it is today. Indeed we are all responsible, but most especially those who have been in governments in the past; however blaming is disingenuous and counterproductive. What Nigeria needs now is solutions.


The solutions for an economic recession, if it can be solved, are not private or secrets of any kind. This is why anyone who keeps it a mystery does not have anything good to offer. The U.S. recession was solved with simple open processes including for a big part, the “2009 Stimulus” [the American Recovery and Reinvestment Act of 2009 (ARRA)].

A few “solution” comments I have read which include, flooding the economy and diversifying, are palliative and long-term and not to address the fundamental, acute and chronic issues that are not peculiar to Nigeria. While I am not an economist by training, as an educated Nigerian with preservation of my nation at heart, it is my duty to contribute my researched analysis on the solutions for the current problem(s).

How Did Nigeria Get Here?

While the Obasanjo and Jonathan governments definitely played a major role in getting us here by selling (Obasanjo privatization frenzy) all of Nigeria to cabal and looting all its earnings, it is counterintuitive to keep blaming them. The truth is that there is more to this recession than the tens of billions of dollars they and their private cabal partners looted and the infrastructure they failed to build. We must recognize that the recession is not limited to Nigeria. Venezuela is feeling it too; even Saudi Arabia is laying off workers in the thousands.

Two global factors played the biggest role in bringing on this economic famine.

The first was the Saudi oil war-games. By pumping oil at above quota, Saudi Arabia single-handedly determined to crash oil prices and punish all oil producers. Saudi pumps oil at under $10 a barrel which makes low prices still profitable for them, unlike Nigeria where the Obasanjos, Babangidas and other semi-intelligent, money worshipping lowly organisms exploited the country permanently with deals that produce our oil at as much as $33/barrel. Low oil prices, with oil being Nigeria’s mono-economic singular export, naturally crashed the Naira. Unfortunately when teased during an Al-Jazeera interview, President Buhari said he will never challenge Saudi Arabia on the kingdom’s crippling decisions and will not even dare threaten to pull out of Saudi-run OPEC in order to push for Nigeria’s survival. So we are stuck here as far as oil prices go.

The second factor that really triggered this recession, most specifically, the tissued Naira was a U.S. decision made public – and thus, operative– as early as March 2014, to increase interest rates. Floating this decision alone caused investors to buy-up the dollar and through 2014 before the rate was even increased, the Benjamin appreciated the most it ever had in a decade, rising as much as 12% in value that year alone. Naira crashed as did Cedis and other currencies. By December of 2015, the U.S. Fed finally increased interest rates to between 0.25 and 0.5% and the fortunes were sealed. The Dollar continued to appreciate, investors in the U.S. would get more money on their bank deposits and mortgages would rise. The rates are on course to further increase to about 0.875% in 2016. It’s summer for the dollar and winter for the Naira.

It is important to always compare what is happening in Nigeria to peer nations. Our analysts compared the changes to the Naira to the Cedis. Like the 2012 fuel subsidy removal which was not a puppet Jonathan thing per se but a mandate from the IMF as we noticed that the same subsidy was removed across West African nations at the same time on the instance of Lagarde, so also the Forex crash has been virtually identical in Nigeria and Ghana. While the Cedis dropped over the past three years under highlight, gradually, reaching a 1:4 value from the initial 1:1.7 it was in early 2014 post revaluation, the Naira was artificially retained at an inflated value and crashed in one swoop, also downgrading from about 1:160 to 1:425. Both have crashed the same proportion.

Bearing this in mind, next are frank solutions to Nigeria’s recession:

1. Actual Devaluation of the Naira

Why is there a black market, BDC in Nigeria? Why does the country have two dollar rates? This is supervised corruption and main reason why the Naira remains in free and turbulent fall.

Central Bank, CBN’s Godwin Emefiele continues to play games with Nigeria, refusing to fully devalue the Naria. A rate duplicity is maintained with the current interbank dollar rate at N305 while the parallel market sells this at N425. This dual rate is corruption and set up to favor the cabal who have been dashed billions of dollars via CBN subsidized dollar sales. Godwin and his friends are able to make N115 on every dollar. The dual rate also maintains a competition for dollars which hikes the price at the parallel market with rebound effects on the interbank rate. A recent Reuters article highlighted how corrupt governments-made billionaire Aliko Dangote was literally dashed $100 million in just over two months of Buhari’s tenure in review. Extrapolate that to a year and you get a total gift of as much as $500 million dollars.

CBN GOVERNOR, MR GODWIN EMEFIELE; VICE-PRESIDENT YEMI OSINBAJO AND PRESIDENT MUHAMMADU BUHARI (29/6/15). 5067/29/6/2015/ICE/CH/NAN
CBN GOVERNOR, MR GODWIN EMEFIELE; VICE-PRESIDENT YEMI OSINBAJO AND PRESIDENT MUHAMMADU BUHARI (29/6/15). 5067/29/6/2015/ICE/CH/NAN
Nigeria can only come out of the recession if the Naira is truly devalued, and there is no longer pressure on the BDC (Bureau de Change). While the federal government of Nigeria is seeking a $1 billion Eurobond, it has within the same period dashed Dangote half a billion dollars in the span of a year and the cabal as a whole some several billion dollars in subsidized forex for their personal ventures while small businesses were shut out to die. This cannot continue. As Senator Ben Murray-Bruce said, the central bank is for all Nigerians and not only the cabal.

2. Recover Nigeria’s USD Billions And Do Not Borrow

The Federal government of Nigeria should not borrow money. It has no need to do so as this has no long term benefit. Rather the Buhari government should employ the services of Nigeria’s best lawyers including Attorney Femi Falana to exigently go after the more than 100 billion recoverable dollars Nigeria has abroad and with bailed-out local banks.

Falana explained in February of this year, “From the information at our disposal, the federal government is owed not less than $66.5 billion (about N13.3 trillion) which ought to be recovered without any further delay…In addition, following the crisis of global capitalism… in 2008, the Central Bank of Nigeria gave a bailout of $4 billion (N600 billion) to the commercial banks in the country… The CBN has not deemed it fit to ask for the refund of the total sum of $11 billion injected into the banking system…”

With the right legal maneuvers, Nigeria can immediately secure several billions of dollars in hard cash air lifts, just like Iran recently is reported to have. Nigeria must face its challenges from a position of power and not one of defeat. He who goes out with a begging bowl lives to tell a sorry tale. There are ways to twist arms and repatriate moneys rapidly. Every tool must be used.

Delete security vote: It must be mentioned that waste must be cut in the government. The security vote must be cut both at the federal level and at state levels. This runs into trillions of Naira mostly wasted or used to finance political, hate and terror campaigns including to pay for media attacks of individuals and groups which continue to promote deadly strife in Nigeria.

3. Take Advantage of the Devalued Naira

If it can’t be a win, win, it doesn’t have to be a lose, lose. Foreign investors are leaving Nigeria not solely because of the devalued Naira, but because of the government posture. Whereas, the crash of the Naira as all economic predicaments, should be exploited to Nigeria’s advantage with aggressive marketing of the opportunities for investors but most importantly with a strong government posture; the shaky and uncertain body-language of Buhari and his cabinet are making a double loss where there should be gain. This is the time for foreigners to invest dollars in Nigeria, most especially in its vast natural resource opportunities. A dollar goes 250% further than it used to.

Now is the time to set up quarries, to invest in mining, farming, fishing and other available opportunities in Nigeria. Now is the time to build and own estate. But why are foreign investors not coming? It is time Nigeria hones in on the opportunities of the low Naira by assuring of security of investment for foreign entities and governments. It is time Nigeria showed confident and eager leadership. We should at least turn it around into a lose, win, situation.

4. Scrap Import Ban List, Open The Market

The CBN’s import ban list has been described as a sham that has always been prompted by the cabal, the likes of Obasanjo and Dangote who typically institute these bans on products Dangote and other cabal manufacture. The import ban lists have always been set up in Nigeria’s history to promote the oligopolies of the cabal. Late Umaru Yar’adua opened the markets and prices fell. He dared to “disentangle” Obasanjo and Dangote till he was killed.

It is poor economics to force dependence on a monopoly. This is why the rich get richer in Nigeria and the poor get poorer till there is chaos. Former CBN governor Charles Soludo has lambasted this policy. It is highly fraudulent and reeks of corruption.

You cannot invite investors and expect trade cooperation while you lock out goods to promote a certain exploitative cabal. In spite of successive government promoting the same cabal, Nigeria buys cement at the highest global prices, at least double the world average. Nigeria’s “.ng” domain name sells at $100/year by these same Obasanjo-related cabal, the highest cost in the world. Virtually every product the Nigerian cabal are assisted to have monopolies on end up exploiting the masses and put money in one pocket only – the cabal’s. Markets can grow on open competition. The cabal must be encouraged to be competitive and not “it’s so much it’s like voodoo money” exploitative.

5. Lower Interest Rates And Promote Small Businesses

Small businesses employ as much as 80% of labor. As small businesses are being killed, there will continue to be mass unemployment, no purchase power and economic recession. The current CBN policies are tailored to corruptly give undue advantage to the cabal and to exterminate small businesses. While cabal buy forex at CBN subsidized rates, small businesses get none. Small business entrepreneurs have limited access to loans and when they do, they get them at unreasonable interest rates.

The federal government must immediately create alternative sources of capital for small businesses. The cabal utilize stashed loot and launder money for former administrators to run their businesses while small businesses are forced out of existence. It is better the Buhari government supports 1000 micro industries than it supports one cabal company. Cabal must be properly taxed and the taxes used to build small industry. Rather the Nigerian government currently taxes the small people to give to the cabal who further exploit the small people with highest prices in the world for goods and utilities.

The cabal have been bailed out numerous times and given waivers and dashed subsidized forex while all governments including the current fail to bailout small businesses. Interest rates must be lowered and government cash must be pumped in an organized and supervised fashion at SMEs (small and medium enterprises). Local fruit juice companies, local chemical factories, metal works, parts plants, recycling plants, solar panel assemblies, mushroom refineries and the like must be encouraged by the government aggressively and immediately.

6. Promote And Standardize “Made In Nigeria”

It is past time for a #MadeinNigeria culture. But this must be more than just a slogan. There are reasons why Nigerians do not patronize made in Nigeria goods. These include reliability. The Federal government must update the standardization boards. All manufactured goods must have warranties that are enforced, with customers being 100% protected by the government. Nigerians should be able to see the warranty label and know that it is backed and protected by law. Failure of companies to fulfill the warranty must be treated seriously as a crime with the companies being immediately shut down and the customers compensated.

Furthermore the ministry of industry must certify products. Product certification in China has boosted the country’s manufacturing sector as its goods are better regarded in global as well as local markets. Nigerians need this assurance as do potential foreign markets where Made in Nigeria goods can be sold. A portal with licensed manufacturer names and information must be available online through which goods and parts can be sourced and Nigerians companies’ accreditation by the government can be reviewed.

Only the federal government has the capacity to develop piecemeal manufacturing where parts of products are made by various small manufacturers and then later combined by other small enterprises, i.e. “division of labor.” The government must do this. The importance of the government recognizing and promoting small entrepreneurs as it currently only does the cabal can not be overstated. The government must set-up to be the link between small piecemeal manufacturers and the market.

It is time for the federal government to actively promote, support and protect a Made in Nigeria culture.

7. Naira: Think Strength Of The People, Poor Economics

Forget strength of the Naira. Think strength of the people. When the people are strong the Naira will get strong; when the people are weak, the Naira will be weak. Nigeria must forget about its Moody rating. Countries have endured tough sanctions and come out superpowers. This is not even sanctions. The Federal government of Nigeria should put the cap on people suffering and dying and not the Naira devaluing. Pull reserves if needed to strengthen the people.

The Naira will continue to drop when the government gives a single cabal $500 million dollars in 12 months then seeks to borrow $1 billion for the entire nation. This corruption makes the people weak and the Naira weak. The Naira cannot appreciate when the Presidency hugs 10 wasteful presidential jets. The people will not be convinced. The people will not have strength, sacrifice and patronize when Lai Mohammed walks in, clad in a loud diamond-sharp starched agbada, to advertise “Change” a slogan copied from Obama, and the President reads more words copied from Obama. And the Naira will not be strong. The Naira will be as weak as the weakening people when they see the circle of power sporting $40,000 watches and $100,000 bags. This government must be serious about change, or/and must immediately partition the country into pieces that will have the chance to as serious as is demanded, and to compete which each other in this.

Contrary to what capitalist economists say, the strength of the economy and currency is determined by the strength of the people and not the other way around. We must study economics for the poor and not always the predominant hegemonists’ brand of economics. Economics of the wealthy has not worked anywhere. Europe is in a perpetual recession even after deriving and the continued derivation of billions from the exploitation of Africa. America today is trillions of dollars in debt in spite of the slave trade and colonisation largesse and continued military economic escapades around the world. The late Thomas Sankara believed in and built the capacity his people. The results were shocking and immediate. We have already wasted the first year and a half of this administration building only the corrupt cabal, it is time to build the people. The Naira will follow.

8. Never Again Use a Banker As CBN Governor

Remove Godwin Emefiele and never again use a banker as CBN governor. Each of the times Nigeria appointed bankers as CBN governors, they built the banks and cabal and extinguished the masses. It is a clear conflict of interest to put a banker with vested interests and friends in the banks, as head of the Apex bank. That is like putting a wolf to protect your chickens.

With the two famous recent banker governors, crippling bank charges and fees were added upon each other to fund the banks and drain the masses in a continuous and progressing ponzi scheme. Some policies were more directly exploiting than others, but all gave the banks many free passes to make earnings off of the poor masses with no value added to the Nigerian economy. And these were done while the cabal were given humongous loans on hand shakes and billions of dollars gifts in subsidized forex. As I wrote July this year, “Recession: Nigeria’s Economy Cannot Improve So Long As Godwin Emefiele Remains In Charge.”

9. Strengthen And Decentralize The Police

Insecurity has cost Nigeria billions in economic loses from the northeast, now a humanitarian catastrophe and a drain to the economy, and continues to do so in the Niger Delta. The fastest and best solution to the continuous breakdown of law and order is stronger and local police. The Nigerian army has no role in domestic maintenance of law and order and as it continues to unconstitutionally police the state, it gets involved in more violations and provokes more deadly crises as it has done in the past. The army is not trained in investigating and arresting. It has no training in disbursing riots and protests and presenting cases to the court. The Nigerian constitution reserves its use as a back up to the police and ONLY when  and if approved by the national assembly.

There is no economy without security and there is no security without a police command that has capacity and understanding of the region. Nigeria will not be serious about economic recovery till it returns the army to the barracks and builds police capacity.

10. Find A Vision For Nigeria

I do not know the vision of Nigeria so far and if the current government has one. What does Nigeria want to be? We know the vision of Dubai and Dubai took itself there. Does Nigeria want to become a tourist center? Does Nigeria want to become the West and Central Africa central manufacturing capital? Does Nigeria wish to become the food basket of Africa? Does Nigeria wish to become the information technology capital in the world? Or does Nigeria wish to become a combination of these or some of them and others?

It is important a central vision or visions for Nigeria is developed and Nigerians are made cognisant of this vision for the future of the nation. Let’s know where we are going so every one can pick an oar and row in consonance. Today we just hear that the new administration wants to build a country, but what country will that be? It is OK to just build a country, but it is better to build a country with a particular primary vision. The world is moving away from careers as we know them. Soon all jobs will be taken over by machines, even medical jobs are at risk. Nigeria can choose a vision that places it at an advantage in the future that has already begun.

Nigeria will survive by God’s grace.

Dr. Peregrino Brimah; @EveryNigerian Via Newsrescue

CBN Counters VP Osinbajo, Says Recession Not 100 metres Race

CBN Counters VP Osinbajo, Says Recession Not 100 metres Race
In contrary to Vice President Yemi Osinbajo that the current Nigeria's recession will not last long, the Central Bank of Nigeria, CBN, has asked Nigerians to brace up for the current economic recession in the country, saying that it was not a 100 metre race but a marathon. 

The Vice-President, Prof. Yemi Osinbajo, has said the economic recession facing the country will not last until 2020 as predicted by a Senior Advocate of Nigeria, Olisa Agbakoba.

Osinbajo, who  said this in Ede, Osun State on Thursday in an interview with journalists after the eighth convocation  of the Redeemer’s University, stated that the recession would end very soon because the administration was focused on measures to revive the economy and make it strong.

He blamed the recession on destruction of oil pipelines which resulted in the reduction of crude oil being sold by the country and the drop in the price of crude oil in the international market.

Osinbajo said, “As far as we are concerned and so far as all of us who are working seriously hard are concerned, the recession must be short-lived.


But The CBN's Acting Director of Corporate Communications, Mr. Isaac Okorafor speaking in Enugu yesterday at the ongoing CBN Fair in Enugu, asked Nigerians to brace up for the current economic recession in the country, saying that it was not a 100 metre race but a marathon.

Okoroafor said that Nigerians must do this by patronising made-in Nigerian goods instead of spending hard currencies in importing items like tooth picks from China or chickens from South Africa. He however, blamed the elites for the problems pointing out that farmers eat what they produced” “We should stop importing chicken when we have them here.

Nigeria should brace up. This is not 100 metre marathon. Let us brace up and change our ways. “The most hit now are people who have refused to realise that we ought to eat what we produce, like the elite. Farmers eat what they produce,” he said.

Okoroafor stressed that the CBN had earmarked N220 billion for micro, small and medium enterprises, MSME, out of which 60 percent was meant for women and women-owned enterprises. According to him, some states have collected as much as between N2billion and N1 billion and registering corporative members in their states in bits.

“Some states elected to pay the interest which is not more than nine percent on behalf of the beneficiaries. That is a lot of guarantee and some are recording huge success.

“We also have the commercial Agricultural Credit Scheme, CACS, for larger commercial farmers. We are for everybody. One of the greatest highlights this time is the youth entrepreneurship programme and that programme is for corps members who are either in service or finished service in the last five years,” he added.

See Alamieyeseigha’s N2.8b Hotel Taken Over By Weeds; Vanity Upon Vanity ...

See Alamieyeseigha’s N2.8b Hotel Taken Over By Weeds; Vanity Upon Vanity ...

Diepreye Alamieyeseigha N2.8 Billion Chelsea

Taken Over By Weeds In Abuja
Almost seven years after the Economic and Financial Crimes Commission (EFCC) handed over the N2.8billion Chelsea Hotel to the government of Bayelsa State, the hitherto money-spinning edifice is rotting away in Abuja.

The hotel was seized from the state’s first civilian governor, the late Diepreye Alamieyeseigha.

A Federal High Court, Lagos in 2007 ordered the forfeiture of the hotel by Alamieyeseigha after the ex-governor was sentenced for corruption.

Besides the hotel, the EFCC sold other Alamieyeseigha assets in Nigeria and realised N3, 128, 230, 294.83billion; $441,000; E7, 000 and £2,000.

The money was remitted to the Central Bank of Nigeria (CBN), in accordance with the law, for onward delivery to the state government as ordered by the court.

Former EFCC Chairman Mrs. Farida Waziri on September 7, 2009 handed over the hotel to ex-Governor Timipreye Sylva in Abuja. The thinking was that it would be a source of revenue for the state.

Seven years after the asset was returned to the state government, the hotel has become a haven for miscreants, men of the underworld, rodents and reptiles.

Shady activities are being perpetrated at the abandoned hotel, which poses danger to some shopping malls and banks in the Central Business District of Abuja.

Some of the miscreants have stripped the hotel of vital materials, which has no security.

An EFCC source, who spoke in confidence, said: “As at the time we handed over the hotel, in 2009, the asset was worth N2.8billion. We returned the hotel to Bayelsa State with another asset at No. 2 Marscibit Street, Off Aminu Kano Crescent Wuse II Abuja which was valued at N210million.

“We took a step further by instructing Diya Fatimilehin and Co., former managers of the hotel to provide the state with detailed inventory of assets of the hotel.”

“It is unfortunate that nothing has been done in the last seven years. The land where the hotel is sited attracts either up to N800million to N1billion in Abuja. Yet the asset is allowed to lie fallow

“To the source, the fate of the once throwing hotel is a typical case of how the anti-graft war is being “frustrated and rendered meaningless”

“A former Chairman of EFCC, Mr. Nuhu Ribadu worked day and night to bring Alamieyeseigha to justice but the efforts have come to naught,” he said.

Asked if the EFCC can query the state government on why the hotel has been abandoned, the source said: “Well, there is not much we can do because we have done our best.

“The state’s funds were looted and used to buy the hotel; we traced the loot and recovered the assets. It is left to the state to live up to its pledge to make judicious use of the asset or sell it.

“We have been expecting a status report from Bayelsa State on how it has spent the recovered funds and the utilisation of the returned assets.”

Upon the receipt of the hotel in 2009, Sylva said: “The Bayelsa State Government will not be able to manage the assets by itself. The fund that the state government will receive will also go to building what is called the Transparency Plaza, in the middle of the Yenagoa Central Business District, so that this plaza will be a monument that will be a constant reminder of today.

”As soon as the fund is accessed, we will like to ask you to come to Bayelsa State to lay the foundation of this plaza.

“We will welcome your close monitoring of the expenditure of this fund, after all without the instrumentality of EFCC, we would not have accessed this fund, so it is only good that you know exactly what we are doing. We are running an open government; our budget is on the website, anybody can access it. We are fully committed to transparency and to partner fully with EFCC.”

As at press time, rodents, reptiles, rodents, miscreants, drug addicts have taken over the hotel.

It was gathered that many posh cars and Sport Utility Vehicles (SUVs) massed up in darkness at the hotel at night for what a source described as “nocturnal deals”.

A concerned bank executive said: “The activities of some miscreants at the old hotel premises constitute security threats to commercial entities in CBD, including choice malls and banks nearby.

“Security agencies and the police should have more than a passing interest in some activities at the old hotel.”

Excerpted from The Nation

How I Increase My Blokos Size & Stopped Premature Ejaculation Issues That Scattered My Relationship For 2years.. Click HERE for Details  




BREAKING: Under Pressure CBN Cancels Bank Rates On Foreign Exchange As Naira Falls The More

BREAKING: Under Pressure CBN Cancels Bank Rate On Foreign Exchange As Naira Falls The More
ThisDay News - Following the pressure mounted by the financial markets and analysts on the Central Bank of Nigeria (CBN) to allow the naira to be truly market determined so as to attract offshore investors who have continued to remain on the sidelines, the CBN has finally freed the nation’s currency so that its rate on the Nigeria Interbank Foreign Exchange (NIFEX) will be determined by the interplay of demand and supply.

The central bank will equally fund the one-month forward contracts of $697 million this week, meaning that authorised dealers that bid on behalf of their customers for the contracts last month would be making a kill of almost N10 to the dollar, given that the naira fell to N292.25 on the interbank market last Friday.

How I Increase My Blokos Size & Stopped Premature Ejaculation Issues That Scattered My Relationship For 2years.. Click HERE for Details
On the first day of trading under the revised rules for the NIFEX on June 20, the CBN had intervened in the market through the Special Secondary Market Intervention Sales (SMIS) to clear the backlog of  $4.02 billion pent-up demand for FX.

According to the CBN, it sold $532 million on the spot market and $3.487 billion in the forwards market.

A breakdown of the $3.487 billion forward sales by the central bank showed that $697 million was for one month (1M), $1.22 billion for two months (2M) and $1.57 billion for three months (3M).

On the full liberalisation of the interbank FX market, THISDAY learnt that pressure was brought to bear on the CBN when it was discovered that since the launch of the revised rules for the NIFEX market last month, the CBN through its interventions had pegged the naira within the range of N281-N284/$.

A banking industry source informed THISDAY that the central bank retained the peg despite announcing that it had floated the naira because of the continuing opposition by President Muhammadu Buhari to the devaluation of the Nigerian currency.

He said: “President Buhari only sanctioned the introduction of the flexible exchange rate regime when he saw the damning data released by the NBS showing that the Nigerian economy had contracted in the first quarter of this year and had effectively slumped into a recession.

“He was a very reluctant convert, so when he expressed his opposition again after the market had been partially liberalised, the CBN slammed the breaks on the naira and started pegging it again.

“But pressure was mounted on the central bank to allow the naira find its true level because offshore investors had taken note and refused to bring their money, thus exacerbating the FX scarcity in the market which the flexible exchange rate regime was meant to resolve.”

Signalling the move towards a proper free float of the naira, THISDAY learnt from treasurers of some of the commercial banks that the central bank held a conference call on Friday with authorised dealers in the FX market, during which the information was communicated to them.

Also, just as the conference call was taking place, the CBN Governor, Mr. Godwin Emefiele, was at a lunchtime meeting with investors in London, where he was said to have told foreign investors that the flexible exchange rate would now operate fully.

A source, who was at the London meeting, said what they gathered from the meeting with Emefiele was that banks were now free to set pricing at a level where supply would match demand for forex.

The central bank anticipates that this new policy would encourage those that have forex to bring it and sell, now that they can get more naira.

As a result of the development, banks made higher bids for forex on Friday, thereby leading to a depreciation of the naira.

Indeed, the naira depreciated against the United States dollar across all FX market segments on Friday. On the interbank market, it fell to an all-time low of N292.25 to a dollar and depreciated at the Bureau De Change and parallel market segments by 2.9 per cent and 3.13 per cent to N355/$1 and N365/$1 respectively, as demand at the interbank market spilled over to the alternative market segments.

Speaking in a phone interview with THISDAY, the Chief Executive Officer, Financial Derivatives Company Limited, Mr. Bismarck Rewane, welcomed the decision to finally allow market forces to determine the value of the naira, saying: “It is about time they did the real thing.”

“Every other thing they were doing was to a large extent a rigged system under the flexible exchange rate system. That did not allow the naira to find its true equilibrium.

“You intervene in the market and naira finds its price. Then you intervene to influence that price. You don’t set a price by starting an intervention before the price emerges. By doing that, you will not know whether you are supporting the currency at an unsustainable rate.

“To me, I am relieved that finally we have gotten to this point. I understand it was done out of pressure from the international community. I learnt international investors said they were not going to do anything with us until we show some seriousness.

“So I think it is the most welcome development since this forex regime started. Now, you are going to see the parallel market depreciate initially, and then appreciate significantly and the difference between the parallel and interbank market would narrow.

“This will also solve the problem of dollar liquidity in the market because a lot of people would bring dollars in officially. Before, people were taking it to the parallel market. So there would be much more supply.”

A currency analyst at Ecobank Nigeria, Mr. Kunle Ezun also predicted that the naira might depreciate to about N350 to a dollar on the interbank market this week, just as he aligned with Rewane, saying: “That is what they should have done when they introduced the flexible exchange rate policy.”

“The central bank ought to have allowed the naira to find its level, and then it would appreciate gradually to about N280 to a dollar. Foreign investors were not comfortable with the N280 to a dollar, considering what the value of the naira is on the parallel market.

“With this now, the CBN would still be intervening as a player in the market, but not as frequently as we have seen since the new guidelines for NIFEX were introduced,” he added.

According to Ezun, if the naira is allowed to trade freely and reflect its true value, foreign investors would come in droves.

He added: “If we say we are operating a flexible exchange rate regime, we should allow the market to trade to reflect the level of liquidity in the market, which is between N300/$1 and $350/$1, then over time, with inflows from foreign investors, the naira may appreciate to about $250 to a dollar. But it shouldn’t be a controlled rate.

“A lot of people believed that the CBN was controlling the market at an interbank rate of around N280 to a dollar. So with what the CBN has done, there is no restriction on the 50 kobo spread between the bid and offer again. This means banks can trade based on what they have.”

The Emir of Kano and former CBN Governor, Alhaji Muhammad Sanusi II, last week said the flexible exchange rate regime was not being fully implemented, just as he warned that targeting a pegged rate would not resolve the current FX problem.

He urged the central bank to allow the forces of demand and supply to determine the true value of the nation’s currency, in line with the flexible exchange rate policy.

“There is a fantastic document by the central bank on the flexible exchange rate. We need to implement that document properly. So long as the implementation is not total and faithful to the document itself, you would have residual market risks.

“You have to let the market decide where the naira is going to be to start with, before inflows come in and then when the inflows are in, you have an appreciation of the naira.

“So you have to live with a devaluation to N300/$1 plus and then it will firm up to N270/$ or N280/$1 or whatever. But so long as you target a rate of N280/$1, you are just moving the peg,” he had argued.

He, however, pointed out that with the new forex policy, the central bank was able to reduce the arbitrary opportunities in the market as well as improving its liquidity.

Emefiele flew to Britain and the United States on a road show last Friday to try to lure investors. Investors had welcomed the move but many said they were steering clear until the economy shows signs of concrete recovery.


AGAIN, Foreign 'Cabals' Gang-up To Devalue The Naira The More

There were indications yesterday that not a few foreign interests seek further devaluation of the naira to as low as 300 to the United States dollar, if desired economic goals must be achieved.

The new foreign exchange regime implemented by the Central Bank of Nigeria, CBN, saw the naira devalued from 197 to about 283 against the dollar on the official side, losing over 30 percent of its value since the start of the new regime.

But according to respected news media, Bloomberg, many foreign investors remain unconvinced, and they are seeking more devaluation of the local currency.

Prior to the start of the new flexible foreign exchange regime, investors tacitly asked that the CBN devalues the naira to reflect market realities.

Relating its findings across global financial capitals, Bloomberg stated that Renaissance Capital, RenCap, a Russian investment banking firm with a base in Victoria Island, Lagos, said in January that the fair value of the naira was 305 against the dollar, urging the CBN to devalue the currency to 250 at the time.

But with its 16-month-old peg on the naira gone courtesy of the new regime, the naira depreciated below RenCap’s requested 250.

But other investors want more depreciation.

For instance, the report said Christine Phillpotts, a stocks analyst at AllianceBernstein, says the fair value of the naira is 320/$1, arguing that, “It’s hard to tell what the central bank has in mind, it’s probably driven equally by economics and politics,” she said, adding that, “It comes down to Buhari and his comfort level with the new regime.”

Alliance Bernstein LP and Loomis Sayles & Co., which are currently among investors navigating post-Brexit global market turmoil, say CBN is not letting the naira weaken enough.

The foregoing positions tally with that of Rick Harrell, an analyst in Boston for Loomis Sayles, which oversees $229 billion of assets who told Bloomberg that “the Central Bank is probably wondering why investors haven’t moved back in following the devaluation.”

He said investors were “being cautious and the main reason why is the state of the economy. The fundamental backdrop isn’t positive.”

Bloomberg stated that trading in the Nigerian interbank foreign exchange market was yet to pick up, partly because the CBN cleared a backlog of dollar demand by selling more than $4 billion in the spot and forward markets on the first day without the peg.

“That the currency’s been so stable since the devaluation tells me that the central bank is still heavily managing it,” Harrell said.
“If we saw gradual depreciation to 300 or above, investors might feel more comfortable coming back,” he added.

Plot to exploit cheap labour
According experts spoken to, the intention of the foreign interests is to bring down the naira-dollar exchange rate further to enable them exploit the Nigerian labour market to their respective advantage.

Said Ikechukwu Ofili, an Abuja based financial consultant: “It’s all a selfish game they are playing. They know we have over 50million unemployed youths in this country. Their game plan is to see the naira further devalued; then with a briefcase of a few dollars or some other foreign currencies, they enter into Nigeria and employ Nigerians cheaply. For instance, if they offer you as a graduate a job for about N150,000 per month, you will think it is big money. But get to the market, you will not get the exact worth of your expectation. And don’t forget that the N150,000 equates to little or zero investment on their part if the naira falls to N300 per dollar.”

The Economic Advisor in an African mission also in Abuja told Nigerian Pilot that: “It is a conspiracy by foreign economic blocs to use Nigeria’s abundant labour cheaply at their whims and caprices. And when they are through, they dump the workers and they are back the unemployment or unemployable market.”

He added that the development sums up the disdain with which interests treat other countries like Nigeria.

He cited the statement by CBN governor, Godwin Emefiele, that despite floating the Nigerian currency, the CBN would intervene in the market from time to time to ensure proper regulation, as he assured that the naira would settle at 250/$, adding that “these people are desperate; your CBN governor could be helpless at the end of the day since desperate people do desperate things to reach expected ends. They can go to any length.”


Another Ex-Female Minister On The Run Over Alleged N3.1b Fraud In Connection With CBN, Dasuki

As operatives of the Economic and Financial Crimes Commission, EFCC, move to unveil the beneficiaries of the N3.1 billion withdrawn from the account of the National Security Adviser in the Central Bank of Nigeria for political campaign, one of the recipients of the cash bonanza has slipped out of the country. 

Sources at the anti-graft agency said last night that the former minister, who hails from one of the South-East states, sneaked out of Nigeria just before the EFCC blew the lid on the huge cash withdrawal. 

The former minister, who is believed to have collected as much as N350 million of the cash, left for a European nation just before the information on the six key Peoples Democratic Party, PDP, chieftains, who drew the cash was made open by the anti-graft agency last week.

But a source close to the former minister defended her, claiming that she left the country two weeks ago for the foreign country without prejudice to the cash or investigation by the EFCC. 

“Madam has, however, been informed of the amount of money she is said to have received from the ONSA for political campaign but she is not in Nigeria as we speak. “The woman has been informed of what the anti-graft agency has said about her but we don’t know when she will return to Nigeria,” a close aide of the former minister said yesterday. 

Of the N3.1 billion cash withdrawn from the CBN on the instruction of the embattled former NSA, a former minister collected N840 million, leaving the balance to be shared by five other party chieftains. 

Last Sunday, another former female minister who reportedly provided the account into which the cash was paid and actually disbursed the money, left Nigeria and is yet to return. 

A source said that although most of the beneficiaries claimed they had the permission of the former President to collect the cash to campaign for him, the President might not have had any knowledge of such transactions.


Trending

Like Us

google.com, pub-6536761625640326, DIRECT, f08c47fec0942fa0