03072019 - Buhari's Ruga policy, an explosive issue — SOYINKA

18 — Vanguard, WEDNESDAY, JULY 3, 2019
THE Central Bank of Nigeria, CBN,
has entered a new phase in the
developmental functions as it relates to
its jurisdictional mandate as pursued
under the Godwin Emefiele-led regime
in the first term, 2014-2019.
Emefiele has rolled out a 14-point
agenda that would hallmark his second
term in the next five years (2019-2024).
They include recapitalisation of
banks, macro-economic stability,
double-digit economic growth, singledigit
inflation, greater access to credit,
and accelerating the rate of
employment.
Others are development of a robust
payments system, extension of
intervention support to the youth
population, increase/diversification of
Nigeria’s exports base, creation of a
Trade Monitoring System, TRMS;
improved foreign direct investment,
FDI, flows; boosting agricultural sector
productivity and aggressive enrolment
onto the BVN system. Finally, Emefiele
said he would continue to operate a
Emefiele’s second term agenda,
matters arising
managed-float exchange rate regime.
We commend Emefiele, first, for his
passion and steadfast pursuit of the
developmental role of the CBN which
comes as an addition to the traditional
role of central banks in developed
economies.
Perhaps this is one of the qualities
that may have earned him the rare
second term in the coveted office, and
we support his re-appointment by
President Muhammadu Buhari.
But we are quick to add that there is
a limit to where passion can go, especially
in a fractious society with weak
institutions such as Nigeria’s where
strong men are larger than institutions,
where rules are observed in the breach
with law-abiding citizens getting the
short end of the stick all the time.
We are also quick to add that as laudable
as each of the goals are, they are
rather too many for one institution,
even if it has all the constitutional
monopoly over the issues involved. We
are, therefore, worried that the apex
bank may be taking too much unto itself
which might torpedo its laudable
agenda.
For instance, the role of CBN in
macro-economic stability is obviously
non-absolute; the fiscal authorities (the
Federal Ministry of Finance) as well
as other economic arms of government
play more critical roles which ultimately
determine the extent of the success of
CBN’s efforts.
The other example is in the agenda
of promoting non-oil exports where the
major government agencies in charge
of the processes report to authorities
other than CBN, and therefore may
have different agenda and control
mechanisms.
Finally, on this same authority and
control issue, the apex bank’s agenda
towards domestic production of goods
and services could easily be
undermined by those in charge of
policing the ports of entry where all
manners of imports still come in
despite the ban.
Despite these, however, we stand with
the CBN and call on the Presidency to
fully back Emefiele’s second tenure
agenda for the good of our economy.
OPINION
Global trade wars: Where do we stand?
By Sunny Ikhioya
AFTER giving the order to strike Iran,
President Donald Trump of the
United States of America, withdrew his
order at the last minute, because, according
to him, too many human lives will be lost
in the process. He, therefore, opted for
further trade sanctions which, he hopes,
will bring the economy of Iran on its knees
and, therefore, force them to the
negotiating table.
That is the situation right now in the
growing feud between the United States of
America and the Islamic Republic of Iran.
However, whether the result will pan out
as envisaged is yet to be seen.
That is the trend throughout the world:
global wars both in trade and cybernetics,
big powers engaged in opposition to themselves
and on the other hand, poised
against weaker countries. The South
American country of Venezuela has been
brought almost to its knees because of the
sanctions imposed by the US and its allies
against the government of President
Maduro.
Although, the government is holding fast
and resilient, the sanctions are really taking
their toll on the citizens of Venezuela
and people are leaving the country in
droves. The big economies are now
virtually matched in sanctions: the US and
its allies against the Russian republic, the
US versus China and so on and so forth.
Nigeria readily comes to mind as one
takes note of the attacks and counter-attacks
between China and the United States,
the resilience of both countries, compared
to the situation in Venezuela that has
totally collapsed the economy.
If Nigeria is to be faced with sanctions
by other countries like the US, China and
the European Union, how are we going to
cope? Are the people we have in government
thinking about this? Will Nigeria survive
trade sanctions imposed by the US
and EU over dispute in trade or other matters?
Ordinarily, with all of the resources
available in Nigeria, both in human
capital and natural resources, the answer
would have been a definite yes. But can we
say yes, given the situation we have found
ourselves today?
If we cannot say yes, what then is responsible
for the negative answer? What is it
that has made Nigeria to fail so badly in
the midst of abundant resources? Waste,
poor management of resources, apathy, illiteracy,
all amplified by deep-rooted
ethnic and religious sentiments. So, we
swim in poverty in the midst of so much
waste; in gas flaring all over the place, in
pipeline leakages, crude oil theft and agric
produces without accessible roads to bring
them to towns, a situation made worse by
poor storage facilities and lack of processing
facilities.
As a result, we are faced with a manpower
that is so focused on trading abroad. Even
without sanctions, Nigerians are already
leaving in numbers to other countries. What
will happen if we are then faced with
sanctions? How will the scenario look like
for Nigeria? Are we going to be like
Venezuela or will the situation be worse? A
country that cannot feed itself cannot be
said to be sovereign; a country that cannot
generate its electricity to power
manufacturing and processing cannot be
said to be independent; a country that
cannot guarantee security for its citizens
is not independent, and a country that
allows free-flow of illegal immigrants to
cause mayhem amongst its population is
a docile country.
Therefore, if such a country is faced with
trade or cyber attacks from bigger nations,
the result will be catastrophic. It is not
rocket science, it is what everyone should
know, right from the beginning. If
government officials are serious, they
should be worried about the situation that
we have found ourselves. As every sector of
the economy appears to be hopeless, what
do we do? What are the things we should
do that will make us truly independent?
What are the things that we can produce
for ourselves over here and what are the
things we must, of necessity, import from
abroad?
We must begin to consider our priorities.
Self-sufficiency is the
only sure way to earn
global respect
Again, what are the things that we can do
without if faced with a worst case scenerio?
These ones must be identified. The next
stage is to identify what it will take to
produce enough of what we have, so we do
not have to import them from abroad.
This is very important because sometimes
we introduce policies without looking at
the implications for the people and country.
If items are necessary in the country, we do
not have to impose a blanket ban on such
items; all that is required is to put in place
effective machinery to get such items produced
locally, especially raw materials,
spare parts and others.
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It requires effective planning, not just
propaganda. So, our focus must be in the
areas of research and development. A
country that is not spending enough or
spending a significant part of its budget
on research and development has no future.
We must seriously encourage the Aba,
Nnewi and other Nigerian made products
with full government support.
Why is it that countries in the desert are
becoming self-sufficient in food production
and over here, we are not making progress?
Our researchers must find out why and give
us solutions; when they do, government
must reciprocate by giving them full support.
And, there must be enough
sensitisation; the citizens must be made to
understand clearly why they must patronise
home-made products. The people in government
must lead the way by setting
worthy examples; you cannot be mouthing
the use of locally manufactured goods
and be seen to be using foreign made.
We also do not have accurate data base
to hinge our planning on. The world is going
electric; we are investing heavily on
petroleum and search for new oil wells. We
should be looking ahead. Above all, government
must possess the necessary political
will to enforce its programmes and
policies.
The governor of the Central Bank has
just announced the prohibition of some
items on our import list to promote local
manufacturing. But you will still find these
banned items displayed conspicuously in
our markets; how will the policy be
effective? There must be no sacred cow, the
consequences of not getting ready for
tomorrow is very disastrous; government
must begin now. Self- sufficiency is the only
sure way to earn global respect.
•Ikhioya, www.southsouthecho.com
Twitter:@SunnyIkhioya