Saturday October 25th, 2014
Saturday October 25th, 2014
Latest

Workers’ welfare: has labour lost the plot?

  /   in Rational Perspectives 12:12 am   /   Comments

President Goodluck Jonathan (2nd right), with Labour leaders and Labour minister, Emeka Wogu (left)

Labour Unions in modern day nation states have the prime objective of enhancing and protecting the social and economic welfare of the working class, who invariably constitute, by far, the majority of the population.

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EPA as “Enslavement Partnership Agreement

  /   in Rational Perspectives 12:32 am   /   Comments

Aganga...our laws are friendly, just that investors are not even aware

In a newspaper report titled “Nigeria rejects EPA over $1.3tn Revenue Loss” (Daily Independent Newspaper of 15/8/2014, Pg. 30), the Director General of Manufacturer’s Association, Mr. Remi Ogunmefun commended the Minister of Trade and Industry, Mr. Olusegun Aganga for “reiterating government’s commitment to pursue the implementation of the Nigerian Industrial Revolution Plan” which accommodates “local content policies and transformation in the agricultural sector among others.”

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Tortoise folklore as metaphor of national leadership

  /   in Rational Perspectives 12:09 am   /   Comments

1000-naira-notes

Pius Adesanmi, a budding literary icon was the guest speaker at the “Second State of the Nation” lecture organized recently by Pastor Tunde Bakare-led Save Nigeria Group. Adesanmi, a Professor at Carlton University, Canada, chose the title “Reparations: What Nigerians Owe the Tortoise” as his theme. I invite you to share in an experience that turned out to be an insightful and sobering verbal interactive satire.

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Latest

Emefiele’s crocodile tears over N300bn surplus

  /   in Rational Perspectives 12:14 am   /   Comments

Emefiele

What we have seen is that instead of banks channelling what we call excess liquidity in the system into the productive or certain targeted sectors of the economy, what they are doing is either placing these monies in treasury bills or even investing them at the CBN Windows”

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$1bn for ‘BH’: Loan or supplementary appropriation?

  /   in Rational Perspectives 12:02 am   /   Comments

senate-Jonathan

I would like to bring to your attention, the urgent need to upgrade the equipment, training and logistics of our Armed Forces and Security Services to enable them more forcefully to confront this (Boko Haram) threat”. “For this reason, I seek the concurrence of the National Assembly for external borrowing of not more than $1bn, including government to government arrangements for this upgrade”.

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Latest

Greed and N65 ATM levy

  /   in Rational Perspectives 12:22 am   /   Comments

atm2

The Financial Punch of Monday 8th September, 2014, carried a story titled “12 banks earn N1.4tn in six months”; the report explained that the published trading results showed that 12 banks made a combined after tax profit of N223bn between January and June 2014.

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Economic redemption: Why is government uncaring?

  /   in Rational Perspectives 12:02 am   /   Comments

1000-naira-notes

This week, we will feature excerpts from comments of three regular readers who obviously agonise on the seeming aloofness of government and its economic Team to the selfless and realistic suggestions made in this column to induce economic growth and rescue millions of our countrymen from the jaws of poverty

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Will dollar allocation induce capital flight?

  /   in Rational Perspectives 12:57 am   /   Comments

naira-Dollar

By HENRY BOYO Dealing with the excess liquidity challenge requires innovative approaches in view of the source of the problem.  One potentially enduring solution, which would avoid the creation of new money and boost the naira value in the foreign exchange market, relates to the allocation of foreign exchange earned from oil to the three

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Economic contradictions and mute victims

  /   in Rational Perspectives 12:21 am   /   Comments

cartoon-economy

A popular indigenous artiste cautioned in one of his lyrics that you cannot sow cocoyam and hope to harvest rice. Notwithstanding the above wise counsel, Nigerians inexplicably hope and believe that in spite of over 70% of our population, reportedly, currently living on less than $2/day, our country could still blossom to become one of the top 20 economies six years from now.

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The realistic path to economic prosperity

  /   in Business, Rational Perspectives 12:38 am   /   Comments

Naira note

Our parlous economic state has been attributed by some observers to our heavy dependence on increasing oil revenue and our inability to stimulate the performance of our industrial and agricultural subsectors, particularly the small and medium enterprises and thereby, also diversify the productive sectors of our economy

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Latest

The treasury bill scam continues to flourish

  /   in Rational Perspectives 9:58 am   /   Comments

Emefiele

In the wake of the 2008 banking crises, the Central Bank created over N4000bn fresh Naira supply, inspite of the attendant inflationary threat, to rescue the Nigerian banking sector. Evidently, however, the bountiful profit figures declared lately by several banks would be clear testimony that, business is presently good in the sub-sector, particularly when compared with the relatively modest profit figures and systemic challenges in other industrial and commercial sub-sectors.

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Latest

Too much talk about dollar certificates?

  /   in Rational Perspectives 12:06 am   /   Comments

naira-Dollar

The regular readers of “Economic Renaissance” will already be very familiar with our strident unceasing advocacy that a simple reform of our payments system will positively transform the economic and social welfare of our people beyond the faltering expectations of the current managers of our economy.

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The strategic blunders of CBN’s Monetary Policy Committee

  /   in Business, Rational Perspectives 12:01 am   /   Comments

The Central Bank of Nigeria head office  in Abuja.

The Federation Accounts Allocation Committee last week approved the sum of over N755bn for sharing among the three tiers of government. Ordinarily, the distribution of this relatively sizable revenue would elicit hope that the economy will become positively impacted, as the various tiers of government would be funded to achieve their budget expectations.

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Boko Haram as excuse for $1bn loan

  /   in Rational Perspectives 12:50 am   /   Comments

BOKO-WOMEN

There can be no denial of the threat of the Boko Haram insurgency to security, the economy of the north-eastern states, particularly, has become seriously dislocated while thousands of people in several communities have been viciously traumatized by the indiscriminate killings of kith and kin and the continuous decimation of their homes and livelihood.

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2014 Pension Act: Not yet uhuru

  /   in Rational Perspectives 12:11 am   /   Comments

The protesting pensioners, yesterday.

The exceptional performance in Pension administration in the last 10 years encouraged the first ever World Pension Summit – Africa in Abuja last week. The event coincided with the 10th anniversary of the commencement of the contributory pension scheme in Nigeria.

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Economy & Reserves: Between the truth and government clarifications

  /   in Rational Perspectives 12:52 am   /   Comments

OKONJO-Iweala in SENATE—From Left, Minister of State for Finance, Dr. Yerima Ngama , with the  Minister of  Finance , Dr  Ngozi Okonjo-Iweala at the Senate Joint Committee on Appropriation, and Finance interactive session on the implementation of 2012 budget at the National Assembly Abuja.

In apparent response to the opposition’s admonition that the nation’s economy was “gradually grinding to a halt” last year, the Coordinating Minister for the Economy, Dr. Ngozi Okonjo-Iweala, conversely painted a brighter economic picture, and sought to clarify popular misconceptions on the issue of our external reserves balance of about $45bn and the alleged discrepancies between the reported Excess Crude Account balances of the Finance Ministry and the Central Bank of Nigeria (CBN) reserves.

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Latest

The forex market hoax: CBN Vs BDCs

  /   in Rational Perspectives 12:11 am   /   Comments

Emefiele

A Trade Group under the umbrella of Concerned Bureau de change operators recently published a full page advert titled “Appeal against Ploy to decimate BDCs and Destabilise the Forex Market”; the advert claimed that the Central Bank was planning to reduce the number of BDCs in Nigeria, despite their contribution to the economy.

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The darker sides of the “Safe Schools Initiative”

  /   in Rational Perspectives 12:09 am   /   Comments

Out-of-school

The “Safe Schools Initiative” (SSI) is a brain-child of Gordon Brown, former UK Prime Minister who now serves as United Nations Special Envoy for Global Education. The SSI was earlier launched at the World Economic Forum Africa in April/May this year in Abuja, in response to the abducted 200 school girls from Chibok, Borno State

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Treasury bills: Can NASS stop this treasury looting?

  /   in Rational Perspectives 12:10 am   /   Comments

N-Assembly

In a report titled “FG’s Monetary Policy injurious to job creation” in the Vanguard newspaper edition of June 7, 2014, Adams Oshiomhole, the Edo State Governor described the Central Bank of Nigeria’s Monetary Policy framework as injurious to job creation. Oshiomhole observed that “current monetary strategy would discourage employers of labour from setting up businesses because interest rates are very high”; in the Governor’s words, “it is like telling someone to live long and then giving him poison”. “How can you create jobs, by pricing money out of the reach of investors in the name of achieving market stability?” Oshiomhole concluded that rapidly increasing job opportunities will not be possible without appropriate supporting infrastructure and liberal access to cheap funds.

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Latest

Monetary Strategy: Is Emefiele our saviour?

  /   in Rational Perspectives 12:02 am   /   Comments

Emefiele

The European Central Bank has lowered its benchmark interest rate to 0.15 per cent from 0.25 per cent in an effort to stimulate economic growth and avoid deflation in the eurozone.

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Latest

So, who is afraid of a stronger naira?

  /   in Rational Perspectives 12:16 am   /   Comments

naira-Dollar

In last week’s article, we identified the advantages of a stronger naira exchange rate to include much lower inflation and interest rates, increasing industrial expansion, with rapidly rising employment opportunities. We also explained how a stronger naira will eliminate fuel subsidy and also reduce the size and cost of our national debt

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Advantages of a stronger Naira

  /   in Rational Perspectives 12:16 am   /   Comments

Naira note

In an article earlier this month, we explained why further naira devaluation would constrain demand and economic growth, and also add millions more to the population of impoverished Nigerians, who are currently unemployed or live on less than $2 per day

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Latest

Systemic Surplus Naira As Economic Poison

  /   in Rational Perspectives 10:50 am   /   Comments

1000-naira-notes

In last week’s article, we discussed the adverse consequences of a flagging naira exchange rate, and observed that historical evidence suggests that further naira depreciation would simply deepen poverty nationwide. However, we also noted that available evidence, in fact, suggests that the naira exchange rate has ironically, steadily dipped inversely with vastly improved foreign reserves and extended imports demand cover”.

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Should the Naira be devalued?

  /   in Rational Perspectives 12:07 am   /   Comments

Naira

In this week’s article, we shall discuss the impact of a weaker exchange rate on various sectors of the economy, and also consider whether or not naira devaluation is imminent and inevitable.

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Commercialisation of education and the storm ahead

  /   in Rational Perspectives 1:20 am   /   Comments

educationpix2

The youths, they say, “are the future of any nation”. In the light of this awareness, the process of youth education and development would be top priority on the list of objectives for any progressive nation.

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Nigeria’s rise to the bottom

  /   in Rational Perspectives 12:10 am   /   Comments

*Finance Minister, Ngozi-Okonjo-Iweala

This week, I invite you to consider the following excerpts from Toyin Dawodu’s response to Forbes’ (a foremost international business magazine) conclusions from its interview with Dr. Ngozi Okonjo-Iweala, Nigeria’s Finance Minister and Coordinating Minister of the Economy. Dawodu is Managing Partner of Capital Investment Group in the United States, and he wrote as follows:

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Budget Don Kpafuka Again

  /   in Rational Perspectives 12:10 am   /   Comments

Okonjo-Iweala-budget

In keeping with our regrettable tradition of late enactment of Appropriation Bills, the 2014 budget was belatedly approved by the legislature, in April; i.e. well over three months into the fiscal year. In this event, this year’s budget, just like previous ones, will only be partially implemented, despite the adverse social impact of partial implementation. However, late passage is not our only challenge with annual budgets.

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Latest

The hype of GDP revaluation and matters arising

  /   in Rational Perspectives 12:10 am   /   Comments

OKONJO-Iweala in SENATE—From Left, Minister of State for Finance, Dr. Yerima Ngama , with the  Minister of  Finance , Dr  Ngozi Okonjo-Iweala at the Senate Joint Committee on Appropriation, and Finance interactive session on the implementation of 2012 budget at the National Assembly Abuja.

In the aftermath of the announcement that Nigeria’s current Gross Domestic Product (GDP) had risen to $510bn, the question on the street was simply, that of, whether or not food will become readily available on the table for the common man, and whether or not the teeming millions of Nigerian youths who are currently unemployed will quickly be provided with jobs.

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Latest

Collegiate presidency and national harmony

  /   in Rational Perspectives 12:10 am   /   Comments

oil-gas

There can be no end in the foreseeable future to a do-or-die fight for the presidency of our nation. The unbridled struggle for the position of top dog has generally been motivated by the attraction of the prospect of almost absolute power over our lives and our nation’s resources, particularly the proceedas from the oil wells of the Niger Delta.

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Latest

MONETARY POLICY COMMITTEE as metaphor for the blind leading the blind

  /   in Rational Perspectives 12:34 am   /   Comments

The Central Bank of Nigeria head office  in Abuja.

Central Bank’s Monetary Policy Rate (MPR), in practice, is the strategic benchmark for modulating best practice standards in the critical economic indices of inflation, cost of funds and exchange rate.

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The sensible path to economic prosperity

  /   in Rational Perspectives 12:09 am   /   Comments

Jonathan and Okonjo-Iweala

This column has consistently maintained that the root cause of our economic paradox of increasing income, with unbridled unemployment rate, and deepening poverty will be found in the conscious and incorrect adoption of a faulty process for the infusion of our crude export dollar revenue into the economy.

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Nigeria’s debt: The House vs Okonjo-Iweala

  /   in Rational Perspectives 12:00 am   /   Comments

Naira sign

In a recent online interactive program with Nigerian youths, the Finance Minister and the Coordinating Minister of the Economy, Dr. Ngozi Okonjo-Iweala, gave the assurance that “Nigeria does not have a debt problem, as the ratio between our debt and our nation’s total output (GDP) is a mere 21%, which, compares favourably with 40 to 60% benchmark for emerging economies and more favourably with the United Kingdom and United States’ debt to GDP ratios of 89 and 90% respectively.

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