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

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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. Send Opinions & Letters to: opinions1234@yahoo.com 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
Foreign investments into Nigeria rise by 34% in Q1’19 By Babajide Komolafe The value of total foreign investments into the country rose by 34.6 percent year-onyear to $8.5 billion in the first quarter of 2019 (Q1’19). This is contained in the National Bureau of Statistics (NBS) Capital Importation report for Q1’19 released yesterday. The report said: “The total value of capital importation into Nigeria stood at $8.485 billion in the first quarter of 2019. This represents an increase of 216.03% compared to Q4 2018 and 34.61% increase compared to the first quarter of 2018.” The largest amount of capital importation by type was received through Portfolio Investment, which accounted for 84.21 percent ($7.1 billion) of total capital importation, followed by heading captured as ‘Other Investment’, which accounted for 12.91 percent ($1.1 billion) of total capital, and then Foreign Direct Investment, FDI, which accounted for 2.86 percent ($243.36million) of total capital imported in Q1’19. By sector, Capital importation by banking dominated Q1’19 reaching $2.9 billion of the total capital importation in Q1’19. The United Kingdom emerged as the top source of capital investment in Nigeria in Q1’19 with $4.5 billion. This accounted for 53.40 percent of the total capital inflow in Q1’19. By Destination of Investment, Lagos state continued to emerge as the top destination of capital investment in Nigeria in Q1’19 with $4.8 billion, accounting for 56.25 percent of the total capital inflow in Q1’19. CURRENCY BUYING SELLING US DOLLAR POUNDS EURO FRANC YEN CFA WAUA RENMINBI RIYAL SDR DANISH RAND $108.60 -1.55 2,526.00 0.00 $12.34 -0.23 $63.27 -1.79 $57.14 -1.95 305.95 306.45 306.95 386.4454 387.077 387.7085 347.7847 346.3498 346.9149 309.6033 310.1093 310.6153 2.8253 2.8299 2.8345 0.5102 0.5202 0.5302 423.9944 425.6873 425.3802 44.486 44.5592 44.6323 81.5801 81.7135 81.8468 424.6892 425.3832 426.0773 46.3154 46.3911 46.4667 . 21.6522 21.6876 21.723 CBN Exchange rate as at 02/07/2019 By Bank, Stanbic IBTC Bank Plc emerged at the top of capital investment in Nigeria in Q1’19 with $3.6billion, accounting for Vanguard, WEDNESDAY, JULY 3, 2019 — 19 42.5 percent of the total capital inflow in Q1’19.” Managing Director/CEO of Unity Bank Plc, Mrs. Tomi Somefun flanked by Mentees at the 2019 YP (Young Professional) breakfast Roundtable held in Lagos. FINANCIAL INCLUSION: CBN orders MfBs to acquire 64 new customers per month By Providence Emmanuel The Central Bank of Nigeria, CBN, yesterday, announced a financial inclusion target of 64 new customers per month for each branch of Microfinance Banks, MfBs, in the country. The target followed a series of meeting between the CBN and MfB operators on the contributions of the subsector towards the achievement of the nation’s goal of 80 percent financial inclusion by 2020. Director, Other Financial Institutions Supervision Department, CBN, Mrs. Tokunbo Martins, announced this target in a letter to all MfBs, titled: “Letter to all Microfinance Banks, MfBs, on the Revised National Financial Inclusion Targets.” The letter reads: “It will be recalled that the National Financial Inclusion strategy (NFIS) was launched in October 2012 and revised in 2018 with the major objective of increasing the percentage of adult Nigerians who own bank accounts and use formal financial services from the baseline figure of 46.3 percent in 2010 to 80 percent by 2020. “Over the last six years of implementation of the strategy, MfBs have contributed significantly towards the realization of the stated objective. As at the end of 2018, 63.2 percent or 63 million adult Nigerians were financially served leaving an inclusion gap of 36.8 percent or 36.6 million adult Nigerians that need to be included. “Given the short time to the end of the target date, it has become expedient for all stakeholders to double efforts towards the realization of the targeted 80 percent inclusion rate. “In a bid to mobilize stakeholders on the Revised National Financial Inclusion Strategy (NFIS 2.0) and accelerate progress towards the achievement of the target, the CBN held a stakeholders’ forum for all financial service providers in the six geo-political zones in the first and second quarters of 20l9 which was attended by representatives of MfBs. “The objective of the forum was to expose stakeholders to the detailed provisions of the revised strategy (NFlS 2.0) and their expected roles/responsibilities in the financial inclusion agenda. “One of the major resolutions reached at the event was the setting of a target for each branch of a MfB to acquire 64 new customers per month. This translates to 774 new bank accounts (measured by new BVN registration) per branch per year. Given the urgency of this task, it is important to cascade the target to your branches for their information and implementation.’’ Accountants must work with govt to bridge infrastructure gap — ACCA By Elizabeth Adegbesan The Association of Chartered Certified Accountants (ACCA) has said that professional accountants in the country must work with the government in mitigating the risk associated with infrastructure projects. According to the association, these accountants will play a vital role in bridging the infrastructure gap by improving the selection, financing and delivery of infrastructure projects. ACCA disclosed this in its recent joint report with Chartered Professional Accountants, Canada, titled: “Bridging the African infrastructure gap”. The report stated: “In order for infrastructure projects to be successful, governments need the right team in place, which includes the professional accountant. “Governments need the right professional team in place to harness the benefits of additional investment while working to mitigate the significant risks associated with infrastructure projects. GPW gives 96 awards to outstanding persons, companies By Cynthia Alo About 96 firms and women who have distinguished themselves in industry and top management received certification and awards at the 2019 Great Place To Work (GPTW) 6th Annual Awards held in Lagos. The awards went to outstanding personalities and companies in various categories. It attracted entries from over six African countries including Kenya, Cote D’ Ivoire, Senegal and South Africa, Namibia and Egypt. The Group Managing Director/CEO, GPTW, Kunle Malomo, said the awards were not aimed at recognising only winners, but also to instill good work practices in work places. He said the company’s vision entails expanding the good work place culture across Africa, adding that the coming editions would feature about 300 companies and over 100 persons. A winner of the Exceptional Women Leaders Awards category, Mrs. Temitope Balogun said; “I am excited, I’m very proud of women being recognized. This is a platform where exceptional women are recognised.” Earlier in his speech, the Keynote speaker, Austin Okere, said Great Place To Work is out to create valueshared personalities, stressing that the awards are aimed at impacting companies and individuals such that they would become internationally recognised. On the company certification category, were: ACCION Microfinance Bank; Afriland Properties; Avon HMO; Broll from Namibia; CISCOtm Egypt; Courteville Business Solution. Others are; Ernst &Young, FBN General Insurance; FBN Holdings, which were grouped on the large companies categories. The medium companies that bagged certification are: FBN Insurance, Hangana, Incentro, Leadway Assurance, Meristerm Security Ltd, Novartis Phamarceuticals, Namibiadiaries, NSIA Insurance, O&L Centre, Pizza Hot, Pwc and RMB. Those that bagged the awards of best work place are: Sanofi Nig Ltd, SC Johnson, Softcom, Sterling Bank, Wema Bank, and United Capital. “Accountants must play a critical role in closing the infrastructure gap by improving the selection, financing and delivery of infrastructure projects. The report noted, “the nation is expected to invest $618 billion in its infrastructure between now and 2040, however it has a projected investment gap of $210.3 billion its public sector needs to plug”. Commenting on the report, ACCA’s Head, Nigeria, Thomas Isibor, said: “Across Nigeria there are a number of barriers that come into play when meeting our infrastructure needs.
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03072019 - Buhari's Ruga policy, an explosive issue — SOYINKA

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