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Tinubu’s Ministers Fault Subsidy Removal, Floating of Naira

Published

6 months ago

February 10, 2024

Eric

Two ministers, on Friday, blamed the current food crisis in the country on the unintended consequences of the two reforms introduced by the Federal government on petrol subsidy and forex.

Minister of Agriculture, Abubakar Kyari, attributed the food shortage in the country to the devaluation of the Naira, which has made the nation’s currency very weak, compared to the CFA franc, the currency used by eight other states in the West Africa sub-region.

Kyari made the disclosure on Friday at the National Assembly in his presentation before the Senate committees on Finance, Appropriation, Banking, Insurance and Other Financial Institutions.

The former acting national chairman of the All Progressives Congress (APC) lamented that the devaluation of the naira had put neighbouring countries at an advantage to buy cheaper farm products from Nigeria which are now consequently smuggled across the border by peasants.

He said: “What we are faced with today is the undocumented export of food to our neighbouring countries. Today, one CFA is N2.50, that is to say, 100 CFA is N2,200. That used to be N400 a few years ago. When you look at our neighbouring countries, all four neighbouring countries around us, the CFA is their currency and because of the devaluation of the naira, our food is the cheapest around the neighbourhood. So, you find a lot of undocumented exports, smuggling across our porous borders to these neighboring countries.”

The minister, who said the Federal government might be compelled to again seal up the borders against the country’s neighbours, expressed concern over unrestrained exportation of certain farm produce by nationals of China, India and Turkey who earned foreign exchange from it while the country earns nothing in return.

He said: “The other angle that we have over the period is the unavailability of foreign exchange. A lot of investors, Indians, Chinese, Turkish, that are operating in this country buy our crops that are sought after outside, like soya beans and buy them at exorbitant prices just to earn foreign exchange. When they go outside there to earn foreign exchange, the worst part is that most of these monies are not repatriated back to us.

“Export is a good thing for us but when you don’t earn the foreign exchange and it is not repatriated back to us, and government doesn’t have any income from it, I am sorry, that is not a good sign.

“So, what we are trying to do here is to ramp up production. I think it is an issue of economics, between supply and demand, but unfortunately we have to see how we can secure food for our 230 million citizens and at the same time if this economic situation continues, then you have to seal up the borders which is against the ECOWAS issue.”

Kyari’s counterpart in the Ministry of Budget and Planning, Atiku Abubakar Bagudu, noted that the removal of fuel subsidy is also affecting planting by farmers.

Bagudu said: “The benefits of fuel subsidy reforms have to be supported by measures that will guarantee food production and stability.

“From our perspectives, particularly from budget and planning, there are places today in about 18 states in the country where you can still plant rice for the dry season farming, including the constituency of the chairman of the national planning in five local governments where, if care is not taken, not for reasons of insecurity, 70 percent of the planting areas might not be cultivated because of fuel cost.

“It is the same thing in a number of places in the constituency of my brother, Senator Adamu Aliero. The balancing of the reforms and ensuring the necessary measures are implemented urgently in order to ensure that we support the reforms is the point made by Senator Aliero. And the commendable act of removing fuel subsidy needs to be supported by measures that support domestic production in order to achieve the full impact.”

As the senators grilled members of the Economic Management Team, they asked the Federal Government to end the pain of Nigerians by applying urgent, workable solutions in its economic recovery policies.

With the inflation rate at 28.92 percent, increased hunger, an exchange rate of about N1,500 to the United States dollar, insecurity and scarcity of food, the lawmakers said President Bola Tinubu and his economic team must respond with measures that would yield faster results.

The team, which was led by the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, appeared before the joint Senate committee co-chaired by senators Sani Musa and Adetokumbo Ashiru.

The governor of the Central Bank of Nigeria (CBN), Mr Yemi Cadoso, was also in attendance.

The senators grilled the ministers for over three hours, seeking explanations for the current economic hardship, particularly inflation, exchange rate crisis, insecurity and food scarcity that have forced Nigerians to start protesting publicly in some states of the federation.

They noted that the sufferings faced by Nigerians have continued to worsen in spite of constant assurances by government that its interventions were yielding fruits.

For instance, Senator Orji Kalu told the team that the manufacturing and agricultural sectors “are practically dead.”

Kalu said the “rush for dollar” in Nigeria had reached an embarrassing level where some goods and services were now priced in the United States’ currency in Nigeria.

“The use of dollar in Nigeria should be an abomination. I can see even shops in Abuja advertising their goods in dollars. Are we going to dollarise our economy?

“What are your plans to stop the threat by Nigeria Labour Congress (NLC) to embark on a protest?” he said.

Senator Abdul Ningi observed that Nigerians had heard more speeches and promises from government officials than solutions to their sufferings.

He said: “The rhetoric continues. This is typical of us. The dollar has been criminalised. Most of us in government are involved. And it even starts from the CBN.

“People are stealing this dollar and know nothing will happen to them. This issue of dollar bribe is from top to bottom.”

But the finance minister, Edun, while reassuring the senators that the government’s interventions were yielding results, expressed the sympathy of Tinubu with Nigerians and called for more patience to allow his administration’s measures to mature.

The governor of the CBN, Yemi Cardoso, in his submission, said the apex bank had no magic wand to address the free-fall of the naira, just as he admonished Nigerians to reduce consumption of foreign goods.

He also attributed the high demand for the greenback to medical tourism and high demand for education in foreign lands.

Cardoso reiterated the government’s belief that the inflation rate would drop to around 21.4 percent later in the year.

For the exchange rate crisis, Cardoso said one way the elite could help the government in resolving it was to reduce their appetite for using foreign currencies, especially the dollar.

He disclosed that foreign investors had begun to restore confidence in the economy as a result of the measures introduced, which had seen an inflow of over $1 billion lately.

Cardoso said: “The Nigerian foreign exchange market is currently facing increased demand pressures, causing a continuous decline in the value of the naira. Factors contributing to this situation include speculative forex demand, inadequate forex supply, increased capital outflows and excess liquidity.

“To address exchange rate volatility, a comprehensive strategy has been initiated to enhance liquidity in the FX markets. This includes unifying FX market segments, clearing outstanding FX obligations, introducing new operational mechanisms for BDCs and IMTOs, enforcing the Net Open Position limit, Open Market Operations, adjusting the remunerable Standing Deposit Facility cap, among others.

“Distinguished senators, these measures, aimed at ensuring a more market-oriented mechanism for exchange rate determination, will boost foreign exchange inflows, stabilise the exchange rate, and minimise its pass-through to domestic inflation.

“Indeed, they have already started yielding early results with significant interest from Foreign Portfolio Investors (FPIs) that have already begun to supply the much-needed foreign exchange to the economy.

“For example, upwards of $1 billion in the last few days came in to subscribe to the Nigeria Treasury Bill auction of one trillion naira which saw an over-subscription earlier this week.

“Our measures aimed at improving USD supply into the Nigerian economy have significant potential in taming the volatility of the exchange rates. However, for these measures to be sustainable, we must, as a country, moderate our demand for FX.

“It is also clear that the task of stabilising the exchange rate, while an official mandate of the CBN, would necessitate efforts beyond the bank itself. It will also include actions by corporates and individuals to reduce our frequent demand for the dollar for business and personal needs.”

When asked to tell Nigerians when the exchange rate would stabilise or drop significantly, the governor replied that he did not know.

“Our measures on exchange rate, well, we don’t know when it will go down, but can I assure you that as the measures kick in, rates will go down ultimately?

“We have to moderate our demand for FX as well,” Cardoso added.

Source: Eyewitness

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Beware of ‘Full Blown Dictatorship, Dele Momodu Cautions Tinubu in New Letter

Published

14 hours ago

July 26, 2024

Eric

By Eric Elezuo

Chairman, Ovation Media Group, Chief Dele Momodu, has again written an open letter to President Bola Tinubu, cautioning him against metamorphosis into full blown dictatorship.

As usual, Chief Momodu took the instrumentality of his social media handles to send his message to Tinubu, which is coming barely two after he wrote him the first letter bordering on the need to curtail his spendthrift attitude and embrace empowerment of Nigeria’s teeming youths.

In the letter titled Once Again, An Appeal to President Tinubu, Momodu outlined their days in the struggle for democracy against the military government, wondering why someone, like Tinubu, who had congregated and protested in the past, will turnaround today to say there will be no protest.

Momodu further blamed Tinubu for the present hardship in the country, accusing him of not knowing the difference between running Lagos as governor and running Nigeria as president.

“And let me be frank Sir. You caused it all. You did not realise that a country is much more complicated than a State,” he said, further accusing of having a stranglehold on Lagos for 24 years since he became governor in 1999.

Momodu advised that the proposed protest should be seen as a litmus test for the security agencies, especially as the Department of State Service (DSS), claimed they have unraveled the identities of those wishing to cause mayhem.

“But I’m reasonably assured that any potential threat can be contained and nipped in the bud, since our secret service claims to have discovered the sponsors of mayhem. Such people should be arrested speedily,” Momodu advised.

He finally advised Tinubu to seek friendly advice, and extricate himself from the ‘hawks’ surrounding him as they do not mean well for him.

It would be recalled that the country has been on edge since the masses vowed to embark on a 10-day protest over extreme hardship in the country, beginning from August 1, 2024.

Read Dele Momodu’s letter in full:

ONCE AGAIN, AN APPEAL TO PRESIDENT BOLA TINUBU…

Your Excellency,

For the second time within two weeks, I’m compelled to write you this epistle. As I write this, my mind goes back to my earliest recollection of you as a Senator of the Federal Republic of Nigeria. As a young journalist, you were everyone’s delight. The June 12 Presidential election annulment brought out the best in you as a pro-democracy figure. You spent money and time fighting the military. Our exile years were lived in constant fear and trepidation.
Fast forward Sir. We returned to Nigeria in 1998

You contested the Lagos State Governorship election in 1999, and pronto, you won. Since then, you have been in absolute control of a state described as the California of Africa, and possibly the sixth richest economy in Africa. Lagos is a country on its own…. I’m just trying to let you know that you’ve been a President in Lagos for 24 years before becoming the President of Nigeria.

Unfortunately, things have not been easy for Nigerians (except members of the privilegentsia) since you realized your lifelong ambition. And let me be frank Sir. You caused it all. You did not realise that a country is much more complicated than a State.

I’m sad and embarrassed that a fighter for Democracy is now saying Nigerians will not be allowed to congregate and demonstrate on the streets, something you and I enjoyed during the military regimes, at home and abroad.

I will never support anarchy, after engaging in peace initiatives in Sierra Leone, Liberia and The Gambia. But I’m reasonably assured that any potential threat can be contained and nipped in the bud, since our secret service claims to have discovered the sponsors of mayhem. Such people should be arrested speedily.

Please Sir, go back to your original friends in civil liberties and seek their assistance. Then, use this opportunity to test the strength, security architecture and combat readiness of our security agencies. Ignore the advice of the hawks in your team. They have nothing to lose since they are mostly beneficiaries of what others died for. Resist the temptations of full blown dictatorship…
You’re in my prayers as you bear this cross…

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Rotary International District 9112 Launches Coastal Restoration Initiative, Plants 1000 Coconut Trees in Lagos

Published

24 hours ago

July 26, 2024

Eric

In a bid to promote its mission of improving the environment, Rotary International District 9112 on Sunday kicked off an environment-saving intervention tagged: Coastal Restoration Initiative at Westside Beach, Okun, Ajah, Lagos, where 1000 coconut trees were planted along the coastal shores of the Atlantic Ocean.

Speaking at the event, the Governor of Rotary International, District 9112 Rotarian Femi Adenekan, said the “initiative is conceived to save the environment as well as reduce the adverse effect of the climate change.”

According to him, “the environment is one of the main focus areas of Rotary International. We need to consciously come to the realization that we need to save our environment. We need to save ourselves. So that in the future, those that will come after us will have life.”

“People assume that the world belongs to them. They have forgotten that they are just tenants on the surface of the earth. If you try to change nature, nature will react, which is the reason we are having a lot of environmental damage in the world. Some of wrong human activities, such as throwing plastics and other items into water or where it ought not to be is causing us environmental challenges. If we don’t take care of our environment, the environment will react and take us out of the surface of the earth,” He said.

The chairman of the District 9112 Tree Planting Committee, Rtn. Gboyega Bada recommended the adoption of an “Every Rotarian Plant a Tree Every Year” policy and also indicated plans for Rotary International District 9112 to propose a Private Bill to the Lagos State House of Assembly to enable all Lagos Residents plant a tree every year for the next five years to address the challenges of climate change.

Rtn Bada stated that the vision of Rotary District 9112 on Tree Planting is to achieve a safer and cleaner environment by planting 10,000 seedlings of Coconut, Mango, Breadfruit, Avocado and other ralated crops that have economic, health and environmental benefits.

The event was well attended by Stakeholders in the Private and Public Sectors. Pan African Towers Ltd, Tolaram Group, Azeez Amida Foundation, Telenoetica Ltd, amongst others were well represented. Past District Governor Tunji Funsho led other Rotary Leaders to give their support. The DG’s wife Rtn Tayo Adenekan, the District Governor elect Rtn Lanre Adedoyin, General Manager of Lagos State Coconut Development Authority, Dapo Olakulehim and Lagos State Parks and Gardens Agency, Club Presidents and Rotarians from the 73 Clubs graced the occasion.

Also speaking at the event, one of the Guest Speakers, the world acclaimed horticulturist, Mr. Andrew Vale of Tolaram Group and The Lagos Free Zone, highlighted the importance of trees, saying; “planting trees improves air quality, reduces air pollution, and illnesses from air pollution. More so, plants produce oxygen and provide shelter, medicine, and many more.”

In his own special remarks, Chairman, LUFASI Park and DG Coconut Naija, Dr. Desmond Majekodunmi, said; “the basic fact about the environment is that whatever you sow, you shall reap. The environment will always treat you, the way you treat it.”

It is of note that the vision of District 9112 on tree planting for this year is to achieve a safer and cleaner environment through the planting of 10,000 seedlings of coconut, mango, breadfruit, avocado and other related crops that have economic, health and environmental benefits.

The event was witnessed and supported by main stakeholders in the industry, agencies and partners which included, Mr Dapo Olakulehin, General Manager, Lagos State Coconut Development Authority (LASCODA), Mr Andrew Vale of Tolaram Group, Channel Scott from Pan African Towers, Azeez Amida Foundation, Telenoetica, The Legend Lifeskills Foundation, Etam Avitat, Lagos State Parks and Gardens Agency (LASPARK) , presidents and members of various Rotary Clubs in District 9112 amongst others.

Rotary leaders who witnessed the event are PDG Tunji Funsho, PDG Kamoru Omotosho, PDG Omotunde Lawson among others.

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Protest: Oluwo Advises Tinubu to Dialogue with Opposition Leaders, CSOs, Labour Leaders, Students, Others

Published

1 day ago

July 25, 2024

Eric

The Paramount Ruler of Iwoland,His Imperial Majesty, Oba Abdulrosheed Adewale Akanbi, has called on President Bola Ahmed Tinubu to invite stakeholders for dialogue ahead of August 1st, 2024 planned protest.

Oluwo stated consultation is necessary to avert violent confrontation by inviting the stakeholders for national discourse.

He feared protest might be hijacked by hoodlums to steal and destroy public properties built by our collective patrimony. Oluwo said dialogue becomes reasonable when it’s embraced before protest. He called on Nigerians to learn from Endsars protest that got many properties built with public funds destroyed.

Oba Akanbi asked President Tinubu to extend the invitation to major political opposition parties leaders mostly the Peoples Democratic Party (PDP), Labour Party, labour union leaders, students’ unions, civil society organizations (CSO), notable traditional rulers and other stakeholders to discuss the state of the nation and collate more ideas to address the economic hardship.

Oluwo expressed strong conviction in patriotic opposition political parties leaders to honour such national conversation.

Oluwo affirmed the economic hardship and inflation are global, conveying the need to hold national talks with stakeholders to discuss solutions to the country’s challenges.

A statement released by Oluwo through his press secretary, Alli Ibraheem, reads “At this crucial moment of global economic challenge, Nigeria inclusive, I call on President Bola Ahmed Tinubu to convey a national dialogue most especially with the dog handlers comprising the opposition parties leaders, civil society organizations, labour leaders, students, traditional rulers and religious leaders”

“In a democratic setting,a peaceful protest is guaranteed provided some are not waiting somewhere to hijack it. Protest will not be advisable at this critical moment of tense global economic hardship”

“I’ve strong hope in the opposition leaders to honour national dialogue and contribute intellectual ideas to national development. No patriotic opposition leaders will want Nigeria to be destroyed”

“Even if a protest is held, we will resort to a round table discussion after the road show. Rather than allowing hoodlums to hijack and destroy the nation we are trying to construct, why not embrace dialogue? When we sit together and talk to each other, more virile approaches and solutions may be suggested for application. It will also provide an avenue for the government to reveal their plans in checkmating food crisis and manage the economy to our collective advantage ”

“Different bodies should have representative(s) at such gathering. Those willong to protest should appoint leaders. It shouldn’t be like endars protesters without leader. No harm will be done to them. As a traditional ruler and leader, I’m watching to ensure masses interests are protected and always ready to speak truth to power. Sincere protesters can reach out to notable traditional rulers”

“The inflation is killing. It’s a global phenomenon. I visited Saudi Arabia recently. Prices of goods have gone up acrosa the world. Even the rich are finding it difficult. Addressing the challenge should involve everyone to come together and discusss way forward”