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Rational Perspectives

15 years of talking to the deaf

Tomorrow, August 22, 2017, will make 15 years, since the advocacy, ceaselessly canvassed in this column, for a payments reform, that would regenerate and rapidly propel inclusive economic growth, was presented to government.

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Desperation for forex and 18% treasury bills ‘awoof’!

By Henry Boyo THE Central Bank of Nigeria offered six and 12-month Treasuries at yields higher than the country’s inflation rate to lure yield-hungry investors and attract dollar inflows. Notably, the CBN sold a total of N204.96bn ($650.67m) in bills, on 19th July 2017. Meanwhile, “Annual inflation rate has reportedly eased to 16.1%. “However, the
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To borrow or not to borrow?

THE issue of sustainability of Nigeria’s debt service burden, has returned to the forefront of public discuss in recent years. Instructively, after the controversial, stupendous payment of almost $20bn, to exit a $30b oppressive debt overhang, owed primarily, to a consortium of London and Paris creditors by 2005; Nigeria’s total debt, has rapidly climbed again to well over $60bn, from less than N1trillion domestic and just over $3bn, external debt in 2006.

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Why higher oil prices cripple the economy

THE crash in crude oil price is usually identified as the major contributor to the prevailing parlous state of our economy; clearly, the drop in oil prices from over $120/barrel to a more humble price below $50/barrel and the significant drop in output, certainly reduced revenue inflow. Thus, one may be tempted to suggest that if “fortuitously”, oil prices soar well above $120/barrel, once more, with production also constantly exceeding 2.5mbd, our revenue base should expectedly flourish and all will be well again.

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The oppresive contradictions in Nigeria’s economy

“Readily available evidence, ironically, indicates that the fundamental cause of our presently distressed economy and precariously sliding Naira exchange rate, is actually that of too much money supply, in both Naira and foreign exchange terms. Evidently, CBN’s management of the supply of money is basically defective, such that the albatross of inflation has invariably remained in double digits for several years, with serious consequences for purchasing power of all Naira incomes, consumer demand, productivity, investment and social welfare.

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Why ERGP is bound to fail (1)

THE Federal Government’s Economic Recovery and Growth Plan 2017-2020(ERGP) was designed with the broad objective of restoring growth, investing in social infrastructure and building a globally competitive economy. The Sunday Sun Newspaper’s Onyedika Aghedo’s interview with this writer on the feasibility of the ERGP follows hereafter.

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The corrupt war against corruption (3)

Last week, we observed that N970 million was budgeted for President Muhammadu Buhari to move around within the country and abroad this year. From that money, N739, 487,784 will be for his international travels and transport alone. Of course, the escalating cost of governance at the federal level also applies across the presidency, from the Vice President, Prof. YemiOsinbajo, to the President’s chief security officer, together with the National Assembly dominated by APC members.

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