Thursday July 24th, 2014
Thursday July 24th, 2014
Latest

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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Latest

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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Phony defence of the Naira and the folly of a nation

  /   in Rational Perspectives 12:25 am   /   Comments

naira-Dollar

Nigerians generally believe that large foreign reserves are useful for defending the exchange rate of the naira. However, our total foreign reserves actually comprise of two primary income streams; the first is the Excess Crude Account (ECA), which consists of all crude oil revenue in excess of budget estimates

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Lamido Sanusi: Villain or patriot?

  /   in Business, Rational Perspectives 12:43 am   /   Comments

Former Governor of Central Bank of Nigeria, Alhaji Lamido Sanusi

Whistleblowers certainly have a role to play to promote accountability in public administration; however, when a nation’s Central Bank Governor turns whistleblower on an issue of substantial revenue misappropriation, then, alarm bells must ring, as the credibility of the administration, which the same Central Bank Governor serves would be called to question.

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Latest

Will more and efficient refineries reduce fuel prices?

  /   in Rational Perspectives 12:35 am   /   Comments

*File photo

The increasing length of queues lately in petrol stations nationwide may suggest that the erstwhile liberal availability of petrol may be threatened. Consequently, many car owners now inevitably patronise the ‘black market’ in spite of the higher prices on offer, rather than wait endlessly in frustration at petrol stations!

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Latest

Are workers better off in Zimbabwe than in Nigeria?

  /   in Rational Perspectives 12:18 am   /   Comments

A Cross section of Workers Match Pasts, during the 2013 Workers Day Commemoration by The Lagos state Council of Nigeria Labour Congress and Trade Union Congress of Nigeria, Theme: 100 Year of Nationhood, The Challenges of National Development, held at Onikan Stadium, Lagos. Photo: Bunmi Azeez

Nigerians could be forgiven, if their impulsive reaction to the above comparison is a derisive sneer because of the general perception that the Zimbabwean economy was dysfunctional. Indeed, about five years ago, Zimbabwe was the ultimate butt of universal jokes because of the abiding inflationary spiral that had gone haywire at 231,000,000%!

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Currency Trafficking, BDCs & CBN: Confusion or Collusion?

  /   in Rational Perspectives 12:12 am   /   Comments

USDollar

In October 2012, several media reports confirmed that two men were helping Economic and Financial Crimes Commission (EFCC) operatives with information on how they came about $986,000 found on them at Lagos and Kano International Airports respectively.

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Latest

Futility of increasing CRR on government deposits

  /   in Rational Perspectives 12:00 am   /   Comments

Lamido Sanusi

The Monetary Policy Committee (MPC), at its meeting last week, retained Central Bank’s benchmark interest rate at the industrially destabilising level of 12%, to avert the threat of inflation.

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Kill subsidy before it kills us!

  /   in Rational Perspectives 12:33 am   /   Comments

SUBSIDY-EXPRESS

This week, we will closely examine the inference of the sum of $8.9bn (about N1.4tn) that NNPC confirmed it legitimately retained as fuel subsidy between January 2012 and July 2013!

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Latest

“CBN Defended naira with $26.6bn in 2013”: True or False?

  /   in Rational Perspectives 12:45 am   /   Comments

CENTRAL Bank of Nigeria (CBN) Governor, Sanusi Lamido Sanusi

The Punch Newspaper recently carried a report titled “CBN Defended Naira with $26.6bn in 2013.” The report, apparently obtained from the Central Bank’s website, indicated that this amount was sold to currency dealers in 94 foreign exchange Dutch Auctions between January and December 2013.

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Latest

Keshi & EFCC as metaphor for false hope

  /   in Rational Perspectives 12:00 am   /   Comments

efcc logo

Similarly, the impact of serial inchoate and generally misguided annual fiscal plans is clearly visible in the parlous state of our economy despite our fortuitous favourable human endowment and abundant natural resources.
Let us, therefore, examine, hereafter, how poor planning and lack of commitment could thwart our expectations for creditable results in two areas; that is, football administration and the war against corruption.

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Latest

ALLEGED UNREMITTED $49.8BN: MISCHIEF, IGNORANCE OR DISTRACTION?

  /   in Finance, Rational Perspectives 12:57 am   /   Comments

sanusI lamido

A letter dated September 25, 2013 written by Lamido Sanusi, Governor of Central Bank, to President, Good Luck Jonathan, was last week, leaked to the media from undisclosed sources.

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Latest

Senate’s ill-advised $76.5 crude oil benchmark

  /   in Rational Perspectives 12:08 am   /   Comments

The Senate

We have regrettably remained loyal, as a country, to a culture of late budget approval and partial implementation annually. Indeed, since the beginning of our civil dispensation, no fiscal plan received legislative approval and presidential assent before December 31.

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Latest

Paper to polymer to paper currency: They still don’t get it

  /   in Business, Rational Perspectives 12:27 am   /   Comments

naira

The slap on the wrist sanction of public servants, who inadvertently or indeed, knowingly misapply public resources, have expectedly engendered increasingly similar anti-social transactions and commitments by the management of several ministries, departments and agencies nationwide.

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