nnankes-takeThe Central Bank of Nigeria’s (CBN’s) circular dated June 23, 2015 aimed at conserving our fast-depleting foreign reserves has been attracting commendation and knocks from various quarters. It would appear however that the recent write-up in The Economist titled “Toothpick Alert: Desperate measures from the bank” is the most orchestrated and brazen attempt aimed at rubbishing and undermining the policy.

The CBN circular, which was signed by the Director, Trade and Exchange, CBN, Mr. Olakanmi Gbadamosi, stated that it was imperative to exclude importers of some goods and services from accessing foreign exchange at the Nigerian foreign exchange market in order to encourage local production of the items. The implementation of the policy is meant to help conserve foreign reserves and facilitate the resuscitation of domestic industries as well as generate employment in Nigeria reports The Punch.CBN-Governor-Godwin-Emefiele

According to the circular, the importation of these items are not banned but importers are directed to source their funds anywhere but the Nigerian foreign exchange market.” The list of 40 items include cement, margarine, palm kernel, vegetable oil, poultry products (chicken, eggs and turkey), Indian incense, tinned fish in sauce (Geisha, Sardines), cold rolled steel sheets, galvanized steel, roofing sheets, wheelbarrows, head pans, metal boxes and containers, and enamelware. Others include steel drum, steel pipes, wire mesh, steel nails, wire rods, security wire, wood particle and board, wood fibre boards and panel, plywood board and panel, wooden doors, toothpicks, glass and glassware, kitchen utensils, tableware, tiles and wooden fabrics, plastic and rubber products, and soap and cosmetics.

Strangely, the Economist’s write-up which has no by-line and is not an editorial, displayed either inverse logic or puerile mischief when it opined that the CBN has no business “puffing up its exchange rate” as “defending currencies against bloodthirsty speculators…cause untold harm to economies”

The ghost writer in the economist noted that “The naira has been hit hard by a fall in the price of oil, Nigeria’s main export. The official exchange rate has slumped by almost 20% over the past year to about 196 naira per dollar. The black market rate, a more accurate gauge, is close to 230. Instead of allowing the naira to devalue, the central bank is trying to defend it by blocking imports. It has drawn up a list of disfavoured goods, and will not grant foreign exchange to import them”. The writer however went on to claim that “economists find the policy baffling”. It however becomes clear that the writer is on to a hatchet job when he or she reveals that “Some (investors?)  wonder which would be worse for Nigeria: allowing him (Present CBN Governor Mr. Godwin Emefiele) to serve the remaining four years of his term or undermining the independence of the central bank by sacking him”.

This is a most repugnant piece coming in from an otherwise respected publication like the Economist. The write-up was full of innuendoes and extremely short on facts and deep analytical fervour. Surely, it is the duty of every central bank to protect its currency and promote its economy. Japan and China for decades have kept their currencies low because they have a robust productive economy and therefore want their exported manufactured products to be competitive against the Dollar and the Euro. Nigeria with a virtual mono-product exporting economy has for decades compounded its economic challenges by unwittingly funding the unrestricted imports of all manner of products abou 90 percent of which can be produced better (and ultimately, cheaply) by local industries. The reverse is the case in Nigeria since we foolishly chose to import virtually all we can produce.

No doubt, the unidentified writer must be an agent of the many foreign and local hawks in Nigeria who parade themselves as investors but bring next to zero foreign exchange into the country while with the connivance of unpatriotic elements in the government receive licences and waivers to import every and anything they fancy and dump into Nigeria. May be the writer will celebrate the fact that in the 1980s Nigeria’s textile industry directly employed about 300, 000 staff while today there are just about 20,000, no thanks to ‘investors’ who bid for our forex to import cheap textiles and fabrics from China and Asia. The same applies to food products. It has been widely reported that Nigeria is a dumping ground for substandard/expired rice, tomato paste, chicken, spirits and even chocolates. These are usually sourced with our dwindling forex and the profits also equally converted into hard currency and quickly repatriated from Nigeria.

Informed observers cannot but commend the CBN under Emefiele for being bold enough to take this all-important step even if it is coming a little too late. The CBN must be resolute in its position and the various arms of government must be prepared to fend off the vicious and unpatriotic lobby that will no doubt be launched by these agents of Nigeria’s economic darkness who will unleash everything in their arsenal to force the CBN to revert to business as usual. The Presidency and National Assembly must close ranks to open up productive activity that will exploit our human and natural resources to rebuild our economy by further developing and executing policies that will create value and force investors to really invest in the real sector and create employment and wealth for the good people of Nigeria. Clearly, prices of those goods will increase in the short run but if the policy is not sabotaged as is the usual practice, we can become self-sufficient in the above-listed product. It is trite knowledge that ‘no pain;no gain’.

After our recent unpalatable experience with over-celebrated apologists of western economies and Brenton-Wood institutions like Dr. Ngozi Okonjo-Iweala, we should realise that only local solutions can lift us from our economic doldrums. May we be reminded that Ghana was the pride of Africa in electricity delivery until a needless intervention from IMF led to a complete degradation of its standard and today the country is grappling with keeping its citizens in constant darkness.

Mr. Roberts U. Orya Managing Director/Chief Executive Officer, Nigerian Export-Import Bank (NEXIM) captures the need to support the CBN position when he says in a recent Economic Confidential Publication thatOne of the reasons why economic diversification is an imperative for Nigeria is because the country is too richly endowed with natural assets for us to concentrate on tapping just one. The one we have concentrated on – oil – is a depleting asset. And then, the production of hydrocarbon resources employs too few labour for Nigeria’s fast-growing population and huge workforce.

Therefore, the economic diversification model that the country needs is one that can help absorb fiscal shocks, fend off monetary instability, provide employment for the teeming work-age population as well as generate more revenue for the government to meet its commitments to the people…. The most important recommendation for promoting Nigeria’s agro-industrial sector is the potential for job creation across the agric value chain. The value chain of the agric sector is well capable of generating additional ten million jobs over the next decade, and it can serve as one of the centre pieces of capital formation in Nigeria’s new economy. Indeed, agro-processing promises exciting prospects for inclusive growth and social stability.”


You might also like

Leave A Reply

Your email address will not be published.

  1. Nwemeh George Ebenezer says

    Speaking frankly on this write up, if the tiers and arms of the govt force can support dis and strongly contend with any any form sabotage from the big boys cabals, I tink d country will witness a roburst economy and unemployment will be tackled to its lowest level.

  2. Cbzjty says

    online prescription for cialis – cialis generic tadalafil buy online

  3. Pqneeq says

    sildenafil 50 mg generic – best price for viagra in us sildenafil pfizer

  4. Qkykzp says

    mexican pharmacy online – cialis savings card brand name cialis canada

  5. Tgkeje says

    ivermectin 3mg tablets – ivermectin 50ml can you buy stromectol over the counter

  6. Tctuis says

    online casino slots no download – casino slots gambling online casino no deposit bonus

  7. Cuymgw says

    erectile dysfunction causes – ed pills comparison non prescription ed pills

  8. Ddumhr says

    prednisone 475 – order prednisone 40mg deltasone 5 mg price

  9. Whmznc says

    viagra in south africa – cheap 25mg viagra where can you get viagra

  10. Ztyruw says

    tadalafil 2.5 mg india – Generic cialis cheap tadalafil india 20mg

  11. Nkqpxd says

    ivermectin 90 mg – ivermectin brand name stromectol 3mg cost

  12. Kspimg says

    buy ed pills online usa – herbal ed treatment free ed pills

  13. PestQuene says
  14. Propecia says

    Cheap Cialis Extra Strength

  15. vebrand says
  16. gawadvalt says
  17. says
  18. Ledebeers says
  19. furosemide pill says

    goodrx furosemide buy lasix without a prescription Empof moups

  20. fliernono says
  21. lasix 40 mg tablet price says

    frusemide 20mg over the counter lasix Empof moups

  22. Vendionig says
  23. furosemide rx says

    furosemide 40 mg tablet buy lasix online without prescription Empof moups

  24. shiesty says
  25. furosemide over the counter says

    lasix tablet 40 mg price furosemide 20 mg tablet price Empof moups

  26. buy stromectol pills cheap says

    Identifying Pills And Amoxicillin

  27. lasix no prescription says

    furosemide pill furosemide cost cvs Empof moups

  28. Cialis says

    Cialis Tabs Sale

  29. ivermectin nz says

    ivermectin 5 mg price buy ivermectin

  30. unfaild says
  31. Atroldbob says
  32. zithromax z-pack says

    Achat Viagra Danger

  33. Mushids says – purchase hydroxychloroquine online

  34. ivermectin 1 cream says

    buy stromectol online ivermectin 50 mg

  35. Lasix says

    Acheter Cialis Montreal

  36. Calluro says
  37. ivermectin pills human says

    ivermectin coronavirus stromectol ivermectin

  38. ivermectin 250ml says

    ivermectin uk buy stromectol

  39. sepSpapse says
  40. Uzaniv says

    stromectol coronavirus – ivermectin 4 mg stromectol ivermectin tablets

  41. pingime says – what is priligy dapoxetine

  42. invingerb says
  43. clomid over the counter says
  44. buy priligy 30mg says

    Dosage Of Cephalexin

  45. clomid online says

    generic clomid pills Empof moups

  46. Mtiify says

    tadalafil 5 mg – buy tadalafil pills tadalafil generic

  47. clomid online without prescription says

    clomid price cvs Empof moups

  48. Sqgwpd says

    where to get accutane online – accutane cost in uk buy accutane uk

  49. Plaquenil says

    Apetamin P Pills

  50. stromectol where to buy says

    stromectol cvs ivermectin 6mg dosage

  51. says

    stromectol covid 19 order stromectol online

  52. Jashytese says
  53. Ncugtq says

    order research paper online – academia writing edit my paper

  54. says

    how to order ivermectin online ivermectin tablets for sale

  55. says

    ivermectin liquid purchase stromectol online

  56. Rdgvqm says

    ivermectin 1 cream – generic stromectol online buy stromectol canada

  57. says

    purchase ivermectin stromectol ivermectin buy

  58. says

    ivermectin cream ivermectine

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More