By Owei Lakemfa
Governance is not about sharing blame, making excuses, or the individual exonerating himself. It is about getting the job done.
*TinubuSo, when in the face of serious financial and economic crises which have seen hunger envelop the land like a shroud and the national currency waterboarded, Olayemi Michael “Yemi” Cardoso, the Central Bank of Nigeria, CBN, Governor exonerates himself, something serious must be wrong.
He told the country: “I think it is very important for Nigerians to
understand that the Central Bank Governor — I, and my team — are not
responsible for the woes that we have today; we are part of the solution.”
t is yet to be seen whether
Cardoso and his team are part of the solution, but they are partly responsible
for the crises we are facing. First, he accepted the myth that the Naira needs
to be floated – without a life jacket or anchor. Secondly, five days after his
September 23, 2023 appointment as CBN Governor, the Naira to the dollar, at the
parallel market, was N1,009. The next month, it sank to N1,140, and in November
to N1,590. In February, 2024, it fell to N1,710. All these were under his
watch.
It can be argued that since his
appointment, Cardoso has been trying to get an handle on the controls, but if
he knew the Naira devaluation was being manipulated like the government
insists, why was he further punishing the country by using the fake rates to
determine the Customs duty?
The CBN instructs the Customs on
the exchange rate to be used for calculating import duty, and the cost is, of
course, passed on to the consumers. So, why would Cardoso as the Central Bank
Governor of an import-dependent country, continuously increase import duties
based on the fake devaluation of the currency and not expect hyperinflation?
When Cardoso was appointed,
Customs exchange rate for import duty was N770.88/$. On November 14, 2023, he
adjusted it to N783.174/$. The following month, he raised it to N951.941/$.
Then, came the craziest part: On February 2, 2024, he raised the Customs rate
from N951.941/$ to N1, 356.883/$. The very next day, he moved it upward to
N1,413.62/$ and within four days, moved it to N1,417.635/$. What manner of Central
Banker in the world increases the Customs duties thrice in one week?
How are investors and
manufacturers expected to plan with such volatility in duty payments? How does
Cardoso engage in such pseudo-economics and expect stable prices?
Why should employers, marketers
and Nigerians be so punished due to the inability of the Central Bank to check
criminality in the foreign exchange market? So, how, like Pontius Pilate, does
he wash his hands clean of the crises Nigerians are facing?
But, rather than subject
Cardoso’s performance to critical analysis, the response from the Presidency is
to present him as some superstar. In his February 17, 2024 piece titled:
‘Olayemi Cardoso’s dilemma’, Tunde Rahman, Senior Presidential Aide to
President Bola Tinubu, told the world that: “Cardoso is obviously a perfect fit
for the CBN top job.”
Then, as if making excuses for Cardoso’s possible failure, Rahman wrote:
“But in the wake of the floating of the naira, some of the variables shaping
the value of the national currency – including limited production in the
country as a result of insecurity, the high taste for imported products,
dwindling exports, poor dollar remittances, humongous school fees of Nigerian
students abroad and medical tourism, all of which engendered a strong demand
for dollar, far outweighing supply – seem to be clearly beyond his control.”
Seriously?
Another official appointed by
this government that does not only need to speak less, but also leave partisan
politics to politicians, is Mr Adewale Bashir Adeniyi, the Comptroller General
of Customs. In the wake of the Economic Community of West African States,
ECOWAS, sanctions against Niger Republic in August, 2023 which included the
closure of borders, Adeniyi, like a butterfly, hopped from one border crossing
to another, giving instructions. What was his business with enforcing border
closure which is the duty of Immigration and the security services? But he is
an actor.
Tragically, on February 23,
2024, he carried his Nollywood acts too far. In the face of serious hunger, he
announced that he is going to crash the prices of food items and shore up the
Naira. How is he going to do it? By selling seized goods to the public at rock
bottom prices. For instance, he said his agency would be selling a 25 kilogramme
of rice at N10,000; that is a quarter of its current market price. You will
think he has a million bags to sell. Laughably, all the Customs had, at least
for the megacity of Lagos with some 18 million people, was 20,000 bags of
assorted grains!
In a Lagos where just a few days before, Nigerians were whipped for over-crowding a bread distribution point where N100 loaves were being given out, it was expected that there would be a huge turnout at the Yaba Customs warehouse sales point. In realisation of this reality, the Customs National Public Relations Officer, Abdullahi Maiwada, announced that the agency would carry out the sales with a firm commitment to transparency, fairness, and public safety.
I am not sure if there was
transparency and fairness in the process, but what we all know is that there
was no public safety as seven Nigerians died at the Lagos sales.
Not unexpectedly, Customs laid
the blame on the doorsteps of the victims. It claimed that after its stock was
exhausted, the crowd broke through its barriers demanding for more items to
buy, and in the process, there was a stampede leading to the loss of lives.
After this tragedy, it is
unlikely that the quixotic Adeniyi who with a few thousand bags of grains
announced he would crash food prices in the country, would be made liable for
these avoidable deaths. If the Customs truly wanted to help a needy population,
it would simply have donated the items to the internally displaced camps or
orphanages that are spread across the country. The Presidency needs to call
Adeniyi to order so that his next reality show would not be more tragic.
Also, the Presidency should
avoid knee jerk actions like invading warehouses in the name of searching for
hoarded food. We know the causes of hyperinflation in the country. These
include unreasonable increases in the prices of petroleum products, lack of
local refining, sinking of the Naira, banditry and terrorism that have forced
many off the farms, wholesale looting, high cost of governance and the
poverty-inducing programmes of the World Bank and the International Monetary
Fund which have been imposed on the country.
Governance is not rocket
science.
*Lakemfa is a commentator on public issues
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