By Abidemi
Gbolahan
The
message delivered by the IMF Managing Director, Ms. Christine Lagarde when she
visited Nigeria earlier in
the year was that only Nigeria
can help herself out of her economic quagmire. I also remembered her advising Nigeria to
address some structural defects observed in the economy if Naira devaluation
was not an option.
President Muhammadu Buhari has
also been using every opportunity of any of his foreign trips to explain that
Naira cannot be devalued further. Even when the local neo-colonialists sharks
in concert with their foreign partners went the whole hug campaigning for
further devaluation of the Naira, they got the snub of the President.
Consequently, they embarked on destructive campaign - ‘Emefiele Must Be
Sacked’. Yet, the President stood solidly behind the CBN governor.
A bold and reassuring statement
ever made by any official of government in Nigeria, even in the continent to
any neo-colonialist institution, is the one credited to the Nigeria’s Finance
Minister, Mrs. Kemi Adeosun, at the just concluded annual Spring Meetings of
the two multilateral institutions – IMF and the World Bank in Washington D.C.
where she was quoted to have told the IMF boldly that “IMF could be a doctor,
but for Nigeria our message is not sick, and even if we are, we have our own
local remedy”. In medical science at times there can be a critical choice
between going with a doctor that will worsen your case or seek self-help. In
the context of the current economic situation, it’s obvious that Nigeria has
rightly settled for the later.
Similar stance taken by Nigeria ’s apex bank – the Central Bank of Nigeria - few
months back incurred the ire of agents of these devaluation and
neo-colonialists. It will be noted that, shortly after the Bank’s initial devaluation
of the local currency, and subsequent withdrawal of 41 items from accessing its
FOREX. This was a decision apparently taken by the CBN management to rescue the
currency from its free fall, these ‘hawks’ took up arms against the CBN.
They found Emefiele’s action as an
affront. These sharks have been so enmeshed in their illicit trade of round
tripping and currency speculation at the detriment of the national interest.
The import of the CBN message was that Nigerians should drop their appetite for
foreign goods, and start patronizing home made products.
Before the composition of President
Buhari’s cabinet, the CBN was managing the economy alone. For the economy not
to collapse, the CBN took some bold steps which some cynics believed was
inimical to the interest of Nigeria .
The apex bank had seen that if Nigeria
was to continue the way it was going, we might not have a Nigeria standing
today. Nigeria’s Chief Executive Officer, President Buhari, is experienced
enough to have seen the merit in the economic recovery initiatives of the CBN
- the more reason he has not faulted any of the Bank’s monetary policies since
coming to power. Gladdening enough is the cohesion and synergy of purpose between
the federal government and the CBN after the inauguration of the federal
cabinet to rescue Nigeria .
This is what Nigeria
needs at this critical time.
What happened in China recently
when President Buhari visited and signed an investment deal with the People’s
Republic of China and attracted US $6 billion investments to the country was a
master stroke to finally nail the coffin of enemies of Nigerians, - the
economic saboteurs, who had been manipulating and feeding fat on foreign
exchange at the parallel market of the FOREX subsector, thus holding the
nation’s economy to ransom.
When some few months back the
Central Bank of Nigeria
mooted the idea of diversifying its foreign exchange reserves from the US
dollar, switching a reasonable portion of it into Yuan, the cynics never
believed the President will heed the CBN advice. With the swap agreement, the
Yuan will flow freely within the Nigeria banking industry and ultimately
make trading seamless. More so, with China as the second largest economy
in the world and a country where the vast majority of Nigerians transact
businesses, the pact will greatly reduce the craze and bottleneck of procuring
the US dollars.
The US dollar started crashing
against the Naira some few days past, and it is expected to continue. Some of
those hitherto antagonistic of the CBN policies have been lending their
support to this deal. Surprising was the support and commendation by the
Lagos Chambers of Commerce and Industry (LCCI) and the Association of Small
Business Owners of Nigeria (ABCON). Even the President, Association of Bureau
de Change Operators of Nigeria (ABCON) have attested to the fact that the pact
will force the US dollar to beat a retreat.
*Gbolahan writes from Ibadan .
This is more of wishful thinking than realty China has never saved any one from economic collapse and the health of your economy is not judged by the exchange rate of your currency but by what you produce China will lend you the yuan and expect payment in dollars, the fact is the Chinese devalue there currency all the time
ReplyDeleteThis is more of wishful thinking than realty China has never saved any one from economic collapse and the health of your economy is not judged by the exchange rate of your currency but by what you produce China will lend you the yuan and expect payment in dollars, the fact is the Chinese devalue there currency all the time
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