Wednesday March 4th, 2015
Wednesday March 4th, 2015
Latest

Budget 2015: Planning to fail?

  /   in Rational Perspectives 12:45 am   /   Comments

money

Over the years, both the Legislative and the Executive arms of government have consistently demonstrated their faith in the popular axiom that “he who fails to plan, plans to fail”; consequently, they have, always ensured that an Income and Expenditure plan is passed into law annually; nonetheless, inspite of their apparent loyalty to the concept of planning, public expectation for improved infrastructure and enhanced social welfare has, ironically remained unfulfilled, such that some cynics may suggest that our economic and social welfare couldn’t be worse even if we ignored the need for a formal plan of action.

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Save The Naira, Save Nigerians

  /   in Rational Perspectives 12:59 am   /   Comments

naira

I am afraid the ordinary citizen will not like to be told that the banks can and do create money. And they who control the credit of the nation direct the policy of Governments and hold in the hollow of their hand the destiny of the people.” Reginald McKenna, Chairman of the Midland Bank, 1924.

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Where is the $7BN CBN loan to 14 banks?

  /   in Rational Perspectives 12:26 am   /   Comments

Naira notes

“The report of the 14 Nigerian banks which were appointed as Asset Managers of Nigeria’s reserves was carried on the back page of The Guardian Newspaper of the 5th of October 2006. The report confirmed that “already deposits worth $7bn representing part of the Central Bank of Nigeria’s share of foreign reserves estimated at about $38bn had been released to the consortium of bankers”, according to CBN’s Head of Corporate Affairs, Mr. Festus Odoko.

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Economic mismanagement in retrospect

  /   in Rational Perspectives 1:00 am   /   Comments

naira

”Media reports at the end of July 2007 confirmed that the Presidential Committee which probed the $480 million which the CBN invested in the African Finance Corporation (AFC), has completed its investigations. After what appeared to be a painstaking audit exercise, over three months, and spanning three continents, the Committee Chairman, Tunde Ogunshakin, disclosed that CBN’s equity contribution was actually $462.923 million.

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SOLUDO VS IWEALA: The pot and the kettle

  /   in Rational Perspectives 12:07 pm   /   Comments

iweala-and-soludo1

If Soludo wants to regain respect, he should return to the path of professionalism. He certainly needs something to improve his image from that of someone whose sojourn into national economic management ended in disaster for the banking sector.”

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Latest

Is fuel price now deregulated?

  /   in Rational Perspectives 12:28 am   /   Comments

oil platform

In the wake of the steady decline in crude oil prices in recent months, Nigerians anticipated the good news of a drop in pump price of petrol. Sadly, however, last week’s announcement of a new price of N87/litre quickly deflated the high public expectation for a price well below the existing, previously subsidized N97/litre.

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Economy: Let’s do it Right

  /   in Rational Perspectives 1:52 am   /   Comments

naira-Dollar

“In the medium to long-term, addressing truly economic transformation becomes imperative. “—Tella

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ECONOMY: LET’S DO IT RIGHT

  /   in Rational Perspectives   /   Comments

naira-Dollar

“In the medium to long-term, addressing truly economic transformation becomes imperative.”—Tella

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FG saves N500bn through implementation of Single Treasury Account

  /   in Rational Perspectives 3:00 am   /   Comments

Minister of Finance and Coordinating Minister of the Economy, Dr. Ngozi Okonjo-Iweala

The federal government saved about N500 billion in unutilized funds last year through the implementation of the Single Treasury Account (TSA).

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Is CBN defending the naira or dollar?

  /   in Rational Perspectives   /   Comments

Well, we do not have to wonder any longer, as reduced revenue from crude oil prices below $60/barrel has clearly constituted another major onslaught on the Naira exchange rate and economic progress.

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Nigeria: Stop Treasury Bills Scam

  /   in Rational Perspectives 12:11 am   /   Comments

Emefiele

In last week’s article we discussed why inclusive economic growth is made unattainable in Nigeria by the process, which the Central Bank adopts for reducing money supply in order to restrain inflation.

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T/BILLS: Who will stop this looting spree?

  /   in Rational Perspectives 12:19 am   /   Comments

money

The contradictions in our failed economy are probably best captured by the stark reality of deepening poverty and unbridled rate of unemployment despite the celebrated recent increase in the Gross Domestic Product, with increasing revenue and bountiful reserves to boot for over two decades!

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Is de -industrialisation imminent?

  /   in Rational Perspectives 12:09 am   /   Comments

One of the busy streets in  the Computer Village Ikeja, Lagos

The above title may seem out of place in the wake of the launch of “Nigeria’s Industrial Revolution Plan” (NIRP) by the Jonathan administration in February this year. The NIRP is clearly a recognition of the embarrassingly modest contribution of manufacturing (less than 7%) to our Gross Domestic Product; conversely, the contribution, for example, of the services subsector has grown from about 23% in 2011 to a robust 52% by 2013 without any significant job creation component!

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Victims of devaluation

  /   in Rational Perspectives 12:12 am   /   Comments

cartoon-economy

Regrettably, inspite of the earlier assurance to maintain the stability of the Naira in his inaugural address, Emefiele, the CBN Governor’s, policy summersault with Naira devaluation shortly afterwards, has since led to the National Currency trading above N173=$1, thus establishing Naira depreciation of about 13%; alarmingly, the pressure remains unabating and there are real fears that sooner than later, the Naira exchange rate may tumble below N200/$1 with the attendant severe social and economic consequences.

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The CBN act and the oppressive failure of monetary strategy

  /   in Rational Perspectives 12:21 am   /   Comments

The Central Bank of Nigeria head office  in Abuja.

The public’s usual refrain to rising prices is that “manufacturers/suppliers/farmers have increased prices of their respective goods and services; the supplier is evidently the villain in public consciousness; it would indeed require the patience of Job to convince most Nigerians that such condemnation was misplaced and it may even be more difficult to put the blame for high cost of funds at the doorstep of Central Bank. Consequently, it would be unbelievable to even suggest that CBN is infact the ‘devil in our economic workshop’.

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Emefiele and inherited “curse” of surplus Naira

  /   in Rational Perspectives 12:05 am   /   Comments

Emefiele

There has been a palpable feeling of economic uncertainty in the land, since the Central Bank officially devalued the Naira exchange rate from N155 to N168 last week; the public’s anxiety is probably, the recognition of the pervasive impact of the Naira/Dollar exchange rate on the general cost of goods and motor-spirits (aka petrol) in a heavily import dependent economy such as ours.

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Is diversification of the economy possible?

  /   in Rational Perspectives 12:09 am   /   Comments

File: Okonjo-Iweala

In the wake of public concerns on the impact of tumbling oil price on government revenue and expenditure in the 2015 budget, the Finance and Coordinating Minister of the Economy, Dr Okonjo Iweala, recently assured a joint Legislative Committee on Finance and National Planning that “we have calculated that in order to help us regain stability, we need a minimum of about $5bn.”

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What is the dollar exchange rate?

  /   in Rational Perspectives 12:03 am   /   Comments

naira-Dollar

The CBN recently restricted direct sales of the federation’s official dollar reserves to some sectors of the economy; consequently, the importation of electronics, information technology, generators, and telecom equipment, finished products and invisible transactions will henceforth be funded with more costly dollars from the Interbank foreign Exchange market.

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Can CBN save the Naira?

  /   in Rational Perspectives 12:12 am   /   Comments

New CBN Governor— From left, new CBN Governor, Mr Godwin Emefiele, his deputies, Sarah Alade and Adebayo Adelabu during a World Press Conference in Abuja, yesterday. Photo: Gbemiga Olamikan. See story on Page 8

There are genuine public concerns that with the receding sales price of crude oil in the international market, in recent months, our heavy dependence on oil revenue may diminish any promising prospect for inclusive economic growth in Nigeria.

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Inequity in government’s revenue drive

  /   in Rational Perspectives 12:11 am   /   Comments

Okonjo-Iweala, Diezani and Jonathan

Inspite of the assurances of Okonjo-Iweala, the Finance and Co-ordinating Minister of the Economy that Nigeria is not broke, there are concerns that falling crude oil prices may in fact belie the Minister’s apparent confidence. Indeed, crude oil which accounts for over 50% of Federal revenue has dipped below $90/barrel after remaining stable between $100-110/barrel for over two years.

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Labour, subsidy and economic dysfunction

  /   in Rational Perspectives 12:09 am   /   Comments

Cross section of Nigerian workers, during the 2014 Workers day commemoration, THEME: Building Enduring Peace and Unity, Panacea for Sustainable National Development, at Onikan, Stadium, Lagos Island. Photo: Bunmi Azeez

The feelers from snippets of information so far available from the 2014-15 budget projections clearly suggest that, inspite of dwindling revenue due to prevailing lower crude oil prices and output, Nigerians may still be compelled to dedicate almost N1500bn or over 20% of next year’s federal budget to the intangible and unsubstantiated benefit of subsidising fuel consumption nationwide.

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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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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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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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