Hi folks, I know you want to say “where have you been for all these months?” or ” How come you haven’t written a single article in 4 months?” I really don’t know the answer. I must admit quite honestly that even right now I don’t feel like or want to write anything.

It’s not because there aren’t things to write, it’s just because I feel quite unmotivated and unworthy to write them. Anyway, I’m writing now ain’t I? So please just bear with me and read on…this will bless you.

I once heard about the parable of the monkeys. Once upon a time a monkey was placed in a particular cage with a bunch of bananas hanging from the top of the cage. Naturally, the monkey swung up the cage excitedly and reached up for the bananas, he was immediately doused with a jet of cold water from a hose that was aimed at the cage. Immediately, he dived back down to the bottom of the cage. Of course, monkeys don’t give in that easily so he tried again – no one was going to deter him from feasting on the bananas. He swung up again to retrieve the bunch of bananas but as soon as he almost touched it, he got doused with water again. He immediately dived back down looking for the source of his affliction (apes hate water). He couldn’t really see anybody and tried after a few minutes. He got doused again. He tried again and again and each time he got doused again and again. After a few days and many attempts, he stopped trying.

One month after, another monkey was brought into the cage. The monkey saw the bunch of bananas and immediately went for it (Note: The bunch of bananas were changed to fresh ones from time to time). He got the shock of his life as a jet of cold water hit him in the face. He quickly scurried to the bottom of the cage and waited a few minutes for the shock to wear off before trying again. He got the same result and after trying a while and getting drenched, he understood why the first monkey wasn’t as eager as he was to eat “free” bananas hanging at the top of the cage. He also succumbed to fate and stopped trying to get the bananas.

Another month after, a new monkey was introduced into the cage. As custom will have it, he went straight for the bunch of fresh bananas he saw hanging at the top of the cage but the other two monkeys went for it as pulled it down with his legs. They immediately pounced on it and beat it silly and into submission. They did that because they knew he would get sprayed with water  and all of them will get wet. They didn’t want to get wet and they knew that he wont get the bananas anyway so they took steps to ensure it didn’t happen. After a while of trying and getting beaten, the monkey gave up trying. One month went by and another monkey was introduced into the cage. He suffered the same fate as the 3rd monkey only that the 3rd monkey was involved in beating him up and keeping him from getting the bunch of bananas.

After a few weeks, the first two monkeys were taken out of the cage. Now of the two monkeys remaining in the cage, none of them actually had water sprayed on them for reaching for the bananas. They were only restrained with pain by the first two monkeys.

Yet another month went by and another monkey was introduced into the cage. He immediately was giving the customary beating treatment when he tried to get the bunch of bananas. After trying a while and getting beat a few times, he suddenly blurted

“Why are you monkeys beating me and holding me back?”

The other monkeys looked at themselves blankly and said

“We don’t know, we don’t know why we are beating you? We were beating as well when we came and tried to reach for the bunch so we just took on the custom of beating every other monkey who tried to reach for the bananas”.

How many of us are like that? We don’t why we are where we are or why we are doing what we are doing. We just know that that is how it should be done. Who told you that? Who told you that you must have only one stream of income? Who told you that you can not live above sin? Who told you that you can’t own your business? Who told you that you can not be financially free?

We were mostly brought up hearing our parents and environment say,

“Get a good education, get a good job thereafter, work all your life, retire broke and busted with a good pension and die!”

What a big lie!

You are like the monkeys!

Why can’t you dare the jet of water and pull out all stops to get the bananas!

What is your own excuse? Are you pulling others down who are trying to get the bananas?

Have you been enslaved by the system?

Do you merely wish freedom or do you DESIRE it?

Listen!!! those who have tried and failed have been taken out of the cage!

Ask yourselves what they did and how you can do it better?

Perhaps, if the three remaining monkeys planned to go for the bananas together the focus of the water spray would be divided and one of them would have been able to get the bunch.

Instead of proliferating negativity and pessimism, think of another way to achieve your dream and go for it.

LIFE DOES NOT GIVE YOU WHAT YOU DESERVE, IT GIVES YOU WHAT YOU DEMAND.

I once read about a story that talked about freedom. Once upon a time, some circus workers captured a baby elephant from its family in the amazon jungle of South America. This elephant was very aggressive and violent towards its captors. It resented deeply its forced seperation from its mother and the rest of its family. It fought its captors bravely but unsuccessfully and they were able to subdue it a little, bind its legs and carry it on a horse drawn cart to the circus camp.

On getting to the circus camp, they tied up the elephant to an iron stake in driven deep into the ground. The elephant tried time after time to get away from his captors but each time he tried, when he had stretched the chain fully, he got stopped by the chain and had to return back to the stake. He kept on doing this for days and after a while resigned to fate that he could never be free from bondage.

One day after many months, one of his captors came and removed the chain from his ankle and literally set him free. The elephant simply walked to the same point at which the chain gets fully stretched and stopped. After a while, he returned to sit by the stake. Day after day, the elephant performed the same ritual, never stepping beyond the point he had been unable to cross when he was bound.

The elephant though hav’n been set free in reality was still bound in his mind and as a result could not live in the reality of his freedom.
The state of the elephant is one I like to define as being delivered but not being free.

Many people are like the elephant in this story. They have shut down their minds to freedom so much that in the moment of their deliverance, they are not aware of the consequent freedom that attends it. Deliverance is many times an external activity but freedom must be internal.
People’s minds are bound to the prevailing circumstances in the environment. I just got into Ado-Ekiti, the capital of Ekiti state with a great opportunity. I really expected to be greeted with enthusiasm and drive, rather I was met with skepticism and excuses. I almost got discouraged but quickly recognised the fact the deliverance vs. freedom issue springing to the fore.

People don’t want to fail forward. They don’t want to try something that looks like something they have failed at before. It is no wonder that Nigerians support one club in England this season and another in Spain next season and another in England next season and so on….People are so used to rushing after the winning team. They don’t understand the importance of building a winning team.

I couldn’t help but wonder, “what will it take me to drive the elephant beyond the boundary of his bondage in his mind?”. “what do I need to do to open the eyes of his mind?”

People have one negative thing or the other to say about network marketing and I ask myself.

“would people rather stay on a job, work their lives out, hate their bosses and their organisations, earn less than they desire, deprive their family of necessarily time  and still get stuck int he rat race simply because they are unwilling to bolster up courage and write their own stories?”

“If network marketing especially those with models by which you can earn passive income for the rest of your life  isn’t the fairest type of marketing inthe world, then tell me is it conventional marketing that only rewards the direct salesman and not the chain of advertisers, referrers or indirect marketers?”

“Why are people hypocritically behaving as if there’s one particular thing they are passionate about, the absence of which they’d rather die when it’s obvious that all they truly wish for is freedom (financial and otherwise)?”.

“If only wishes were horses, even beggars will ride”.

“The proof of desire is pursuit”.

Apparently, loads of people around here are not desirous of freedom, they only wish it, otherwise, they’ll pursue it with all they’ve got.
Deliverance is not equivalent to freedom until one gets involved in making it so.

Deliverance is to wishing what desire and pursuit are to freedom.
You may have been delivered, but are you free?

Hi guys. It so nice to have me back again aint it? I can hear some of you screaming “when will that guy write an article again?” It’s 11:48pm and I don’t want to sleep before I send this post. I got sent this link while I was networking online. I decided to check it  out immediately especially  because it was sent to me by one of my mentors.

One of Nigeria’s journalists of renown, Reuben Abati’s name  jumped out at me as I got to the site. I discovered it was a link to an online Nigerian newspaper. The fact that that the article was posted in the weekend edition also piqued my curiosity even more. This piece will be interesting, I told myself.

It was an insight into what the erstwhile Economic and Financial Crimes Commission chairman, Nuhu Ribadu thought about corruption and it’s effects in Nigeria and how from a trailblazer point of view, they tackled corruption without fear or favour during the Obasanjo administration.

He also gave a highlight into what life as a deposed and disgraced public servant and super policeman is now. The first ever policeman to charge sitting governors and senators to court over corruption and even send one to jail. The first cop to investigate the President of the Federal Republic of Nigeria and charge his daughter to court over corruption. The first cop to jail a sitting bank MD and handcuff  and jail a police Inspector General. He suddenly has become Public Enemy No. 1 because the current political proponents and crooks are out to deal with him for his selfless service and commitment to the eradication of crime in his Motherland.

Never before have I been this touched and impressed about the testimony and resolve of a Northern Nigerian. In fact in the discussion, he pledged his life to the fight against corruption. Hear him,

I swear by the Almighty that wherever there are people who are trying to make Nigeria a better country, I will be among them. Walahi.”

Mallam Nuhu Ribadu thus qualifies as a Hero for me and as a voice and face of The Future Movement and ultimately a New NIGERIAN. Three happy cheers for him. HURRAY! HURRAY!! HURRAY!!! What are you doing to take responsibility?

Please find the full article below.

I Saw Ribadu In Rwanda
By Reuben Abati

I RAN into him at the reception lobby of the Hotel Des Milles Collines in Kigali. He had just arrived and was trying to check into the hotel: Nuhu Ribadu, the erstwhile Chairman of the Economic and Financial Crimes Commission who lost his job under rather controversial circumstances, and who is regarded as having been unfairly treated by the Yar’Adua government. I hugged him. He had lost nothing of his humility, his sense of humour and his humanity. He didn’t look like a man who had just been rough-tackled by the unpredictable Nigerian state whose moral compass is subject solely to the whims and caprices of whoever is in charge, and not necessarily principles and values.

The following morning, we sat together on the same long table, and I slipped a note to him. I wanted an interview with him for The Guardian. It is about time he told his story at great length. He read my note, and picked up his pen. I noticed that he is a Southpaw, and I chuckled remembering how so many southpaws tend to find themselves in the hot corners of history. In his response, he had said “we would discuss.” We were both attending a conference organised by UNECA in collaboration with UNDP to assess the efficiency and impact of anti-corruption institutions in Africa. There were anti-corruption chiefs in attendance from various African countries.

Ribadu wouldn’t grant an interview, but he was ready to discuss. “I think it is better for me to remain silent now”, he says. “I am using this period to reflect on what we did. You know when I took up the job in 2003, I resolved that I will try my utmost best. And walahi, I tried. I took the assignment seriously. Maybe I failed, but at least we proved that it is possible. So, I have been thinking and trying to figure out what further should have been done or could have been done differently.” We were soon asked to introduce ourselves. When it was Ribadu’s turn, he told the meeting: “I am Nuhu Ribadu, former Chairman of the Economic and Financial Crimes Commission of Nigeria, currently recuperating from a bloodied nose”. The hall cracked into laughter. But the other anti-corruption chiefs and operatives would not laugh later when Ribadu took part in a country case studies panel.

There has been so much speculation about Ribadu’s whereabouts in the Nigerian press. But the fact is that he is currently a Senior Fellow at St Antony’s College in Oxford University in the United Kingdom, working with Professor Paul Collier, the leading authority on African economies and politics. St Antony’s College has become the sanctuary for many progressives who get into trouble in the developing world. Ribadu stays in a residence that was recently vacated by Anwal Ibrahim, the embattled former Prime Minister of Malaysia whose only offence was that he fell out of favour with his boss, Mahathir Muhammed. “Such a nice man”, Ribadu says. “he left me his plates and cutlery and kitchen utensils.” One of the persons Ribadu met on arrival at St Antony’s is John Githongo, the Kenyan newspaper columnist and anti-corruption campaigner who had to flee from Kenya in 2005, after he discovered that the majorly corrupt persons in the country are his own colleagues: Ministers and the big men of Kenyan society. Githongo got their confessions on tape, but they told him bluntly that they are the ones milking Kenya dry. One fateful day, Githongo packed his bags and fled to London, from where he sent a letter resigning his position as Permanent Secretary for Ethics and Governance in Kibaki’s NARC Government. He has now returned to Kenya where he enjoys massive media and civil society support, and his book, written by Michela Wrong and titled It’s Our Turn To Eat will be released in London on February 23. It will go on sale in Nairobi the same day.

Unlike Githongo, Ribadu did not run away immediately he discovered that he had fallen out of favour. He stayed and tried to fight the system. He was sidelined and sent to a course he didn’t ask for in Kuru near Jos. Behind his back, they gave his job to someone else, without regard to the security of tenure. Then, they demoted him in what looked like a routine administrative exercise, but the political undertones were writ large. When he tried to resist the system, they shoved him out of the graduation hall at Kuru, and his employers, the Police sent him to Siberia: what Nigerians would call the Ogbugbuaja treatment. Ribadu got lawyers and again tried to fight back. He refused to report for duty. He refused to wear the uniform of the new rank.

One day, assassins trailed him and pumped bullets into his car. Having served in the Nigeria Police for more than two decades, he could spot a warning shot if one was fired in his direction. So, Ribadu succumbed to the logic of Bob Marley’s lyrics: “He who fights and runs away, will live to fight another day.” He is not likely to come anywhere Nigeria for a while. Those who do not like his face and his work have effectively driven him out of town. But he is a determined man. “What has happened to me is just a temporary setback”, he concludes. “I am a fighter, I don’t give up. I don’t believe the people who think they have dealt with me will have the last laugh.”

Like Githongo, Ribadu is spending his period in exile to think and write. “I am working on two books”, he told me. The working title for the first book is “The Problem of Corruption in Africa: The Nigerian Experience.” He explained: “You know corruption is the biggest problem we have in Africa. It is so central to the problems we have. But to fight corruption, the biggest man in government, the President or the Prime Minister must be honest about it. That is where it starts. Americans talk about Obama. We need change in Nigeria more than America does. What I discovered is that we have a challenge to give power to ordinary Nigerians, to ordinary people, to take it from the politicians. And we don’t have time. Change is important.” He didn’t have a working title for his proposed second book. But he offered an outline of its posssible contents.

“When I look back, I realise that some of the people who liked what I did also have issues with some of the things we did. I plan to do a second book to address some of their concerns. I intend to show for example that we deliberately went after grand corruption because that is where the problem is. We interrogated the Governors, the Senate President, the Vice President. I put a Bank Director, Bulama in handcuffs. The moment we did that, the banks knew immediately that there were no sacred cows. We needed to send a strong signal that corruption will not be condoned and the cleansing process had to start from the stop. The day I took the job, I knew that it could end up like this. I knew that I could be victimised or dismissed or killed. It could have been worse. That I am alive today is by the Grace of the Almighty and I am grateful. But my position is that some people just have to make the sacrifice to save our country. I swear by the Almighty that wherever there are people who are trying to make Nigeria a better country, I will be among them. Walahi.”

Another objective Ribadu intends to achieve in the second book is to comment on a number of case studies. “People go about saying that Obasanjo used me to go after his enemies, Obasanjo didn’t use me, in fact may be it is the other way round. If you check, you will notice that the people we went after were actually Obasanjo’s people. Alamiyeseigha was very close to the President. Odili was also very close to him. Saminu Turaki was an Obasanjo man. I deliberately did not go after the opposition. Yes, we investigated Orji Kalu. We also investigated Bola Tinubu. I know the President’s people would have wanted the EFCC to go after a man like Ken Nnamani. But we needed to start with the Obasanjo people to make a point that nobody is above the law. And that was why we investigated the President himself, And we went after his daughter. I was in Kuru then, but I knew about the Iyabo case. If we want to clean up our country, then let us do it. And that was why I went after Atiku. Atiku is from the same village with me. But Nigeria is more important. It belongs to all of us, not some powerful people.”

Ribadu’s book is also a response to questions about due process and the rule of law. “People complain that we didn’t obey the rule of law, that we violated due process and they use specific instances to criticise us. I plan to respond to all those criticisms. Take a man like former IG Tafa Balogun. I didn’t like what happened myself. I was against putting him in handcuffs. But I have to be sensitive to the people who work under me. They came to me and accussed me of double standards. When I accepted the job, I was inspired by the example of Jerry Rawlings of Ghana who went after the big fish and changed his country for good. So we decided that if we could put a Bank MD in handcuffs and follow that up with an Inspector General of Police, then Nigerians would realise that we meant serious business. That was what happened. I am a human being. I make mistakes. I admit that. But I was honest about what I did. So they say we abused the rule of law? What is rule of law? The same rule of law that has now been used to recapture Nigeria?”

I told Ribadu I can’t wait to read and review his books. When are they coming out? “This year. By July. We have to keep the anti-corruption campaign alive. For me personally, there is nothing left for me other than to dedicate myself to the struggle. I am not seeking to be an Obama. But people must be prepared to make the sacrifice. We need change more than America.” How is he these days? “I sleep well these days”, he said. “My needs are minimal. Look at this pair of slippers”. I checked: an over-abused pair of slippers with worn edges and threatening holes. “I have been wearing this since 2003 and I am okay. But I must tell you I have enjoyed a lot of goodwill since I left office. I was offered jobs by many international organisations. I receive invitations to attend conferences and to write books. I came here for example from Lusaka. I am happy to know that there are people out there who have faith in human progress and integrity.”

It was soon the turn of Ribadu to participate in a panel discussion focussing on country case studies. There were contributions from representatives of Nigeria’s EFCC and the ICPC, but Ribadu’s comments had a special accent which struck a chord among the participants. He said: “If you fight corruption, it fights back. If you go after petty corruption nothing will happen to you, But if you go after grand corruption, you’d be taking on the politicians and they have the money. And they will come after you, But you can choose to go to bed with them and you’d continue to be Chairman or Director, and you can go to conferences and enjoy tea and collect estacodes. But I made a choice, I decided to go after the big ones, even if they were the ones that put me there, I investigated President Obasanjo, I took his statement myself. I went after his daughter, a Senator, I went after Governors, I charged all of them to court. One of them offered me $500, 000 US and a house in Seychelles and an aircraft, but I rejected all of that. By the time I left EFCC, I had 275 convictions in a country that never had one on cases of grand corruption, I charged the Vice President to court – somebody from my village. I proved that it can be done.

“It is the most difficult work to do. To confront it will require people who make sacrifice like Mandela, like the people who fought for independence in our various countries. It requires people who have courage, people who do not think that they want to enjoy. If you want to enjoy, it is not the kind of work you can do. I have no regrets. It requires a strong will to make sacrifice. You have to make a fundamental decsiion. It can even mean you lose your life. They will try to compromise you, They will try to blackmail you. I survived an assassination attempt. I have bullets in my car. I intend to keep that car for life. I have no regrets. You have the media. You have to carry them along, be open, be accountable. I have never given a penny to anybody in the media, But there is no newspaper in Nigeria that has not made me Man of the Year, even though I charged some publishers to court and even threatened to close down newspapers. Which shows that people are good. If they see that you mean well, they will support you. I am out now, but Nigeria has changed. You need international co-operation. You also need to build capacity.

“We built a Financial Intelligence Unit, you have to be in control of Financial intelligence in your country. because money is at the root of all forms of corruption. If you track the money, you can stop the corruption. Be on the side of your own people. Don’t be on the side of the leaders. A President will go, but the country will be there, Those who are in control, it is only temporary. History will judge you and you will never regret.”

]]> http://busayoakanro.com/2009/02/22/public-enemy-no1/feed/ 3 http://busayoakanro.com/2009/02/11/who-will-bell-the-banks/ http://busayoakanro.com/2009/02/11/who-will-bell-the-banks/#comments Wed, 11 Feb 2009 17:13:06 +0000 bussee http://busayoakanro.com/?p=256

“if God judge count the iniquity of the wicked, who shall stand?”

I seat here watching and listening to intermittently the CEOs of banks in the U.S giving comprehensive account of their transactions with regards to the bailout they got from the government a while ago. I see seated all the CEOs of the big and mightly banks. The JP Morgan Chases, Goldman Sachhs of this world are ably represented as they say what and what they have done with the moneys given to them an what amount of profit or loss they have made.

The idea behind the committee that is holding them accountable is to find out whether the CEOs can be trusted as proper custodians of public funds and whether or not they will sacrifice all that is needed to ensure that Americans have access to proper credit again credibly in the bid to grow the sunken economy.

The last time some of them were told to give account, questions fired at them bothered on their own personal sacrifices and those of the management with regards to crises situations. Questions like “Did you arrive by private jet or did you take the train or did you fly first class?” were thrown at them to see what lengths they were willing to go to indicate their empathy with Americans and the American economy crisis at present. Those whose personal spending habits didn’t reflect what they drafted on paper as reports were seriously reprimanded.

And then suddenly, with tears in my eyes, I ask myself “when will this happen in Nigeria?” When will the Jim Ovias and Tony Elumelus be brought before an equitable committee to give an account of how they have put public funds to use?

When will there be a harmonised financial year end for banks so that all the buffering up of accounts from one bank to another and mistatement of accounts by so-called auditors who have been bribed stop?

When will even the CBN governor be able brought to accountability on his projections, his statements and the state of the economy as a fall out of his policies or inactions?

This hand-in-glove arrangement that the banks have with the CBN governor such that the true state of health of the banks are not disclosed despite the fact that billions of naira of public funds are at risk may have been exposed by then.

When will those who are in charge of leading, driving and growing our economy be brought to accountability in the face of their woeful failures?

I can’t wait. I just can’t. Even the Bank of England governor can attest that the nation is in deep recession. Our own CBN governor can’t even state the banks that are “living dead” and find a solution to rescuing the public’s funds.

Who will bell the banks? and when? In the New Nigeria, I believe all that should be will be.

I had some internet training with one of my friends yesterday evening. In fact, the training was supposed to have commenced yesterday morning but it commenced in the evening because my friend came in late. When he came, he narrated his ordeal to us. He had gone that morning to a bank in Ikorodu (GTB) to withdraw money and having completed that transaction successfully had moved to another bank immediately (UBA) in Ikorodu as well to pay in the money.

On getting to UBA, he filled in the deposit slip and joined the queue. After several minutes of waiting, eventually, it was his turn to pay in his cash in. The cashier collected the stash of cash from him, looked through it and concluded that there where “mutilated” notes in the stash. She therefore returned the money to him and insisted that he changed the “mutilated” notes otherwise, she wouldn’t accept his deposit. What did she mean by “mutilated” notes by the way – Naira notes that were torn, ragged or defaced.

My friend argued that the bank was supposed to collect such notes and return them to CBN – Central Bank of Nigeria for recycling and that if banks who were the public’s last resort to exchange “mutilated” notes for whole notes where refusing to do so, what other options did people have apart from losing their money outrightly. She informed him that when they took such notes to the CBN, the CBN charged them for it by reducing some bla bla bla – technical stuff he didn’t understand and so returning the notes to CBN wouldn’t fly by her.

My friend tried to let her know that he just collected the money from a bank and brought it straight down to theirs. If a bank could issue him such notes, certainly, another bank should be willing to receive them. The cashier at this point was losing patience with him and told him point blank “Oga, it’s either you change those notes, or you find some other branch of our bank to pay it in. I will not collect them from you.” she told him in so many words. Beaten, my friend had to take his “mutilated” notes back to the bank from which he collected them. He narrated his ordeal at the receiving bank to the cashier who paid him earlier and demanded that the notes be changed. The notes were eventually changed and he had to head back to UBA tail between his legs to deposit whole notes in the bank. The whole process lasted several hours and caused our training schedule to be moved by the same time. It didn’t help that he had to begin to find his way down to Allen avenue, Ikeja all the way from Ikorodu. Took him a while to arrive.

Anyway, we eventually had the training and I started making and losing money immediately (LOL), but I couldn’t help but wonder, if CBN isn’t collecting mutilated notes without a charge, are they saying that they need money? After all, they must have anticipated this mutilation of naira notes and made provision for it’s return and recycling. Are they trying to tell the banks, “see, we gave you brand new notes, we will receive no less from you.” What roles exactly are the CBN supposed to assume in situations like this? Should people begin to reduce their dignity to fisticuffs over mutilated notes? Because that’s what I see happening very soon, especially when it becomes popular knowledge that banks are refusing those notes on the excuse that the CBN is charging them for deposits which such notes. If the CBN needs money, can they not make requisition for it? Must they tax banks because of mutilated notes that are not the responsibility or the consequence of the banks operations?

Can we please have a sensitive, human faced money and bank regulator in this country? Soludo please take note. – (not a mutilated one anyway LOL)

This is quite a lengthy article but a must read for every Nigerian who loves his country. Just when we were beginning to rejoice that our economy was moving vertically upwards and that our currency was getting stronger, something seems to have pulled out the floor from under us and everything seems to be plummeting towards ground zero. I just read this article in the newspapers and feel I need to post it as it is. If those managing the economy of this country are so intent on destroying it, then we who are bound by oaths to save this country need to rise up and deliver the future. The president yesterday or today inaugurated a team that will look into and combat the financial meltdown that is upon us in the country. As usual, he has chosen a reactive means rather than a proactive one to address serious national issues.  I find this article very insightful and interesting. It doesn’t mean that the article portrays my views about the situation or that I totally support the facts but it’s really an eye-opener. It’s titled “Naira’s strategic crash”.

Naira’s strategic crash
Written by Les Leba
Wednesday, January 14, 2009

News Analysis

In August 2007, President Yar’Adua shot down the Central Bank’s proposed Strategic Agenda for the Naira (SAN) on the grounds that the Presidency was excluded from its conception.

In spite of the announcement that an adhoc economic team had been constituted to re-evaluate the proposal, nothing more was heard of the verdict of government’s economic experts.

This presumably could mean that no merit was discerned in the proposals for naira redenomination and for dollar derived revenue to be paid as dollar allocations to the three tiers of government.

Indeed, the tenets of CBN Governor’s proposed Strategic Agenda for the Naira was a complete somersault from the overt inclinations of Soludo’s prevailing monetary framework, but the proposals were surprisingly in consonance with the framework which I had canvassed unceasingly for over seven years, in spite of the indifference and open derision by the CBN!

We have always insisted that all the permutations for a development agenda, from NEEDS, to SEEDS to LEEDS to NAPEP, etc, etc, would come to naught if the CBN continued to impound federal dollar derived revenue and substitute naira allocations!

To be fair, President Yar’Adua may be excused for his suspicion of CBN’s sudden turnaround in its monetary policy framework after earlier assurances and promises that the Nigerian economy was treading the path of recovery and development under expert professorial guidance.

The issue of redenomination, as canvassed by Soludo, may also have smelt foul to Mr. President, seeing that billions of naira of public funds had just been expended in designing, producing and promoting the acceptance of new currency notes and coins!

The thought of discarding these notes and coins barely six months or so after introduction certainly would not sit well if viewed from the perspective of any rational person. Indeed, our advice in several articles that the issue is not that of new currencies but that of value or related purchasing power went unheeded!

Our prediction that the coins would not be adopted because of their meaningless values was similarly discountenanced! Today, the CBN is stuck with container loads of valueless coins for which it has now placed newspaper adverts to solicit for those buyers who may want to recycle the coins into bangles, trinkets, copper pipe and wires or other forms of designs or gift items and artworks!

Not even a hurriedly enacted legislation with prison terms and fines as penalty have induced the public to patronize the new coins or treat our currency notes with respect! (See our article “RESPECT FOR THE NAIRA”) at www.geocities.com/lesleba.

The CBN’s subdued acceptance of the government’s suspension of its Strategic Agenda for a healthy naira may be seen as an indication of Soludo’s lack of faith even in his own proposal!

If, indeed, the CBN believed in the power and relevance of its ‘new’ agenda in promoting economic development in the face of increasing poverty in the land, the CBN failed to exercise its constitutional duty to promote policies which will improve the common good and discard policies with negative or adverse consequences for the economy!

In other words, something else other than the desire to serve our people faithfully and productively goaded the CBN Governor to continue in the pursuit of defective monetary policies!

In our paper titled, “A LIBERALISED FOREIGN EXCHANGE MARKET: a proposal for a liberalized foreign exchange market in Nigeria and its economic benefits” – Boyo/Ojomaikre, we had insisted that the system where the CBN was the major direct supplier of both naira and dollar to the money market was an unhealthy monopoly with serious consequences for a market-determined economy!

Our advice that the three tiers of government be given dollar certificates (not cash) for distributable dollar derived revenue to ensure a market-determined naira rate that will stimulate economic growth was discountenanced and the CBN subsequently responded with its farcical so-called ‘liberalized foreign exchange market’, which in reality was no different from the earlier and existing market frameworks, called DAS, WDAS, IFEM, AFEM, etc.

The common denominator of all these foreign exchange market contraptions was the maintenance of the CBN’s stranglehold on the dollar market and the consolidation of a market system which ultimately instigated increasing poverty with increasing wealth!

The evidence of this correlation was amplified when our dollar reserves rose to over $60bn at a time we became classified amongst the world’s poorest nations!

In fact, monetary policy in that period became so confused that the CBN appeared embarrassed by our sudden healthy reserve balances and decided that the best way to use up the reserves was to allocate over $3bn every month to Bureaus de Change (BDCs) patrons.

Our entreaties in various articles of the suicidal consequences of this profligacy were ignored as the BDCs became an easy pool for capital flight as looters of public treasury and smugglers of contraband had a field day.

The result is now plain for all to see— divestment by such multi-nationals like Dunlop and Michelin and the suffocation of indigenous small and medium enterprises which are generally regarded as the engine of growth in all economies!

The admission of increasing unemployment and insecurity by various agencies of government can only be a confirmation that our monetary policy experts failed woefully to turn our years of plenty into meaningful welfare improvement for our people.

Now that the locust years are at hand, Nigerians should be ready to finally lay undisputed claim to the lowest rung of the world’s poverty ladder!

Indeed, in spite of the sustained increase in reserves from less than $20bn a few years back to over $60bn in November 2008, Nigerians ignored our clarion observation that the naira rate of exchange to the dollar remained resistant rather than its touted state of stability by all and sundry, including the poorly informed Chambers of Commerce and Association of Manufacturers!

Our sometimes irreverent overtures to these pillars of the private sector to see reality were unceremoniously rebuffed! Regrettably, the chickens have now come home to roost! In less than six weeks, the naira rate has depreciated by almost 50% with no end yet in sight!

The CBN has once again suddenly accepted our enduring observation that it is not in its mandate to sell dollars to BDCs, while our foreign reserves have quickly fallen by almost 15% in six weeks; at this rate of depletion, we may inexplicably have zero reserves before year end and we may need to go borrowing big time before the end of 2009; never mind the CBN’s often expressed notions of over 30 months of imports cover provided by our level of reserves!

The tragic thing about the above scenario is that the CBN Governor confidently confirms that the devaluation of the naira is deliberate and designed to ensure a balance in government revenue against projected expenditure!

In other words, the depletion in our oil revenue will be countered by deliberate devaluation of the naira so as to ameliorate any potential deficit in the quantum naira available for monthly allocation! In this wise, we may see the naira rate fall to almost N200/$1 before year end!

This would be no surprise as the government’s economic bible, NEEDS 1 & 2, had projected a naira value of over N180/$1 as the appropriate exchange level that will drive economic development!

It was a tragedy of epic proportions to watch the standing ovation by members of the National Assembly in response to Prof. Soludo’s presentation in defence of the deliberate policy to devalue the naira!

One day, one day, their abysmal ignorance or complicity in deceit will be blown wide open, but regrettably, millions of lives would have been depraved by the self interest of a few Nigerians!

SAVE THE NAIRA, SAVE NIGERIANS!