The Good Governance Group (3G), a robust, conscientious and collaborative initiative of followers, comprising of intelligentsia, professionals, and artisans, rubbed minds on the nauseating Dollar – Naira debacle in our country and decided to issue this Press Release informed by value-added virtual discourse, debate and dialogue among the over 300 members of the platform.
It is a no-brainer that the Naira is under severe, if not excruciating, strain from the Dollar (USD), and other major foreign currencies like the GBP, Euro, and even the CFA. This indeed is a looming disaster if not addressed urgently by both the government and citizens. It is disheartening and saddening that some unpatriotic Nigerians are now keeping the USD as a form of investment instead of keeping the Naira in the bank whilst others are speculating, hoping, unfortunately, that the Naira will continue to depreciate against the USD, thereby making “obscene” profit especially when the USD being “stocked” was gotten at the official CBN rate for a supposedly legitimate purpose but not used for that purpose. This is the crux of the matter!
How Did We Get Here?
It would be recalled that from the heydays of the General Ibrahim Badamosi Babangida (IBB) regime that drove our economy through the notorious Structural Adjustment Programme (SAP), the Naira started the nosediving journey as the Western powers believed that our local currency was overvalued. The incumbent administration’s policy of allowing market forces to determine the value of Nigeria was well-intentioned to arrest the ugly trend of those profiting from the difference in the CBN official (N470/$) and the parallel (black market) (N770/$) rate – way back in July 2023. Obviously, no sane person expected that, as we speak, the Dollar would be exchanged for the Naira at the abysmal rate of N1,500/$! Where are we going from here as the callous and indifferent rent seekers are not ready to desist from this indecorous mannerism as citizens? Obviously, those entrenched in rent-seeking do not care about the concomitant and nauseating effect on the economy, especially the instability in prices of virtually every item in the market. It is not exaggerating that prices of essential commodities are getting out of the reach of the citizenry leaving many Nigerians in a parlous state. It is worsening to state that the country’s external reserves are dipping and bleeding with little left to shore up the value of Nigeria!
Hawking foreign currency by the roadside is an aberration making Nigeria a laughing stock amongst the comity of sane countries. It is demoralizing to witness banks and Bureau De Change (BDC) hiding behind a ‘seen-through’ veil to condescend to unwholesome practices in this heinous economic corruption about to set our country ablaze if urgent and far-reaching steps are not taken by the regulating authorities. The generation of US$ is seemingly solely on the sales of crude oil which lately had been enhanced, thanks to the incumbent administration’s war against theft of crude oil. However, as the Nigerian economy is yet to witness evidential diversification that will ensure streams of foreign exchange inflows that will counter the undue demands by Nigerians for dollars, the government should as a matter of urgency enforce some far-reaching actions in sync with extant laws.
What is the Way Forward?
A. Government
Leaders in government at all levels must urgently cut our expenses to reflect the austere times we live in to encourage sacrifices by followership. The maxim for leaders at all levels must be, “Do as I do, and not just do as I say.” In this vein, all foreign exchange components of any contract award or trip by government officials must be diligently scrutinized to achieve maximum value.
Moreover, it is crucial that all relevant institutions that impact greatly on the economy, such as the CBN, Ministry of Finance, and security agencies must be strengthened to do their duties without fear or favour but for the best interest of Nigeria only. It cannot be business as usual if we want to get off this precipice! In this vein, the CBN must put all banks under the microscope for proper scrutiny, monitoring, and regulatory controls. It is high time the CBN woke up from its deep slumber and adjusted to reality as the apex bank seriously needs rebranding! It is very absurd and unfortunate that Nigerian banks are declaring profits in billions of Naira while virtually all other sectors of the economy are economically bleeding. Truth must be told; the citizens should perceive a remarkable difference in the CBN of the Buhari era to that of the incumbent Tinubu administration.
In addition, there must be a collaborative effort between the state and federal governments to enhance Foreign Direct Investments (FDI) that will engender significant inflows of foreign exchange. In this direction, bottlenecks must be removed in the ways of prospective investors, specifically in the mineral development and mining sector that can compete with foreign exchange inflows from crude oil export within the next 3 to 5 years. It is doable with strong political will and a collaborative win-win attitude with the subnational and the government at the centre!
The state and local governments must, as a matter of priority stop paying lip service to agribusiness. It is high time the federal government incentivized proactive farming at state and local government levels. In this direction, any proactive state or local government should get more assistance from the federal government. Independent and professional monitoring and evaluation experts should track the process. In doing this, productivity is enhanced and the inflationary trend would be arrested. Moreover, local cottage industries will be set up to process the produce thus generating employment, enhancing the income of local people, and earning of foreign exchange through export. Suffice it to say, that the federal government should boost investment in research and development (R & D) by strengthening extant institutions involved in R & D.
Governance at the subnational level should impart followership or citizenship more. A member of the group highlighted three Governors – Zulum (Borno), Lagos (Sanwo-Olu), and Ekiti (Oyebanji) – reaching out to alleviate poverty amongst the followers. Other governors should emulate and exemplify these colleagues of theirs! In addition, the federal government should urge each state to set up a commodity and price regulatory agency to address “essential commodities.” The leaders, not behaving like an ostrich burying its head in the sand, should declare “austerity actions” with the seemingly moribund National Orientation Agency playing a proactive role across all traditional and social media immediately. In sync with this style, leaders should model the way.
The President and Governors should lead this crusade as a matter of national urgency as the planting season is not yet over! Governments, at all levels, should be proactive in agribusiness by frontally and brutally partaking in it. Kudos to Governors Soludo (Anambra), Makinde (Oyo), Zulum (Borno), AbdulRasaq (Kwara), etc. Good to mention is the government of Lagos setting up modern Agric markets in partnership with private individuals to take power away from meddlesome middlemen and women partly responsible for unjustifiable price increases of essential food items.
B. Citizens
First and foremost, the appetite for foreign goods and services should be readdressed or replaced with qualitative local alternatives in the areas of education, health, and vacation. Similarly, payment for real estate should be in the local currency, likewise for all local transactions, this is the norm in sane climes. Furthermore, all employees engaged in the private sector, whether expatriates or citizens, should be paid in Naira. All expatriates should have their credentials scrutinized by the relevant agencies of government to ascertain there are needed professionals in Nigeria as there are millions of Nigerians reeling in the unpalatable unemployment market.
Henceforth, we, as citizens, should eat what we grow; wear what we produce; use what we produce. In this regard, Governor Chukwuma Soludo of Anambra State should be commended for consistently wearing local fabrics, specifically Akwette, and patronizing the local vehicle manufacturing plant: Innoson Vehicle Manufacturing, to promote the Made-In-Nigeria goods.
The citizens should stop celebrating wealthy individuals whose sources of wealth are questionable; some of these people are neck-deep in economic sabotage such as crude oil theft, illegal bunkering, embezzlement, etc. In this regard, anyone caught spraying any currency at parties should be arrested and prosecuted to serve as a deterrent to erring and eccentric citizens. Citizens involved in the banking and financial sectors of the economy, including those in the public service, should be patriotic enough to stick to the ethics of their professions/careers rather than resorting to cutting corners to the detriment of the country thereby adding to the hardship of the ordinary Nigerians. In this vein, extant laws should be reviewed by our lawmakers, at the state and national assemblies, to discourage unethical practices.
All said and done, citizens or followers should note that the incumbent government is trying her utmost best, albeit, a gestation period synonymous with “seed sowing time” in farming is needed for those efforts, when cautiously monitored and evaluated, to bear fruits that people can feel, see and embrace!
Conclusion
Moreover, it is high time the federal government proscribed the importation of certain items produced locally, especially fabrics, specifically Adire from China! In the same vein, the tax regime for certain luxury goods should be reviewed upward for the nouveau riche or opulent among the citizens. Pertinently, there should be no foreign exchange transactions except at designated and registered Bureau De Change Centres. These centres should be published with detailed addresses whilst the operations should be strictly guided and monitored by the Central Bank via credible consultants. Their operations should be on transparent monitoring with identities of customers recorded as transactions occur. This is the practice in some sane countries that means well for their financial and fiscal stability and sustainability. It is high time Mr. President wielded the big stick that will arrest this nauseating trend, no matter whose ox is gored, to save the impending doom of our economy. A stitch in time saves nine!
For and on behalf of the administrators:
Good Governance Group (3G),
Dr. John Moyo Ekundayo, Convener (can be reached at drjmoekundayo@hotmail.com or via sms: 08030598267)
