In an economy as vibrant and fragile as Nigeria, financial team is pivotal to how the nation strike a balance between global and national economics, and use that as the basis for formulating both monetary and fiscal policies. This is something Nigeria’s financial team has failed to do since the global oil glut started.
When global oil prices plunged and erased over 70 percent of Nigeria’s foreign revenue. Instead of the central bank to allay national fear by formulating monetary policy to stimulate the economy from within and assure the nation of its readiness to do whatever it takes to ensure things does not deteriorate further like the Bank of England governor Mark Carney did immediately the Britons voted to leave the European Union on June 23, the institution spent the first two months of this administration denying the impact of the shortfall on the economy, only to banned manufacturers of 40-items from accessing forex at official rate on June 23, 2015 as a measure to rescue itself from lack of forex, but end up weakening the manufacturing sector as most manufacturers had to lay off when they couldn’t source for raw materials, leading to high unemployment rate and even higher foreign exchange rates.
Subsequently, this created unnecessary fear and alerted foreign investors to the level of their technical know-how, hence the capital flights that follows and the persistent pressure from both the International Monetary Fund and analysts to devalue the Naira so as to accommodate the difference created by a drop in global oil prices. Again, the federal government, central bank, ministry of finance and monetary policy committee (financial team) refuted all plead to devalue the Nigerian Naira and instead increased interest rates by 100 basis points to 12 percent to boost capital importation, ease the liquidity issue unfolding at the interbank market as at the time and reduce capital flight simultaneously. Not only does this monetary policy fail, but it further exposed their lack of experience in managing financial crisis.
However, one would think the Nigerian Monetary Policy Committee that had voted severally on rates since then would thought it necessary to lower interest rates and allow real investors access to cheaper loans to create jobs needed to attack high unemployment rate, increase consumer spending and fight economic gridlock, while the CBN concentrate on how to increase forex into the country by going after institutions like PayPal Inc., that bar Nigerians from withdrawing funds yet declared Nigeria as the third highest mobile shopper in the world. But no, the Monetary Policy Committee led by the Governor of the Central Bank of Nigeria Godwin Emefiele left rates unchanged.
Again, on June 20 when the institution exhausted its external reserves and was forced to introduce forex flexibility policy, the institution failed to take into consideration global economics “the U.K. and the European Union referendum of June 23”. Even though, Nigeria is a petrol-dollar economy and grossly depend on the outcome of the referendum like every crude oil dependent economies, the CBN neglected the obvious and roll out forex policy three days to the referendum to attract global investors that were perturbed by the high global uncertainty created by the referendum, and in fact forced the “BIG” US Federal Reserve to rescind on its rate decision pending the outcome of the vote.
As expected that too failed, with nothing left in its arsenal to attack the situation, the CBN resolved to a more radical move by increasing interest rates by 200 basis points to 14 percent in an economy with pervasive layoff, low consumer spending and weak manufacturing sector — all in an effort to lure same global investors that have refused to invest in Naira’s risky assets, especially when global risks and uncertainty heightened by Brexit jumped to the level last seen in 2009. This was even made worse in Nigeria with the recurrent militant attacks that has reduced oil production by more than 600,000 barrels per day, high unemployment rate (13.3%), high inflation rate (17.1) and negative economic growth rate (-2.06).
The question is why chasing foreign investors? Why not stimulate the economy domestically by lowering interest rates and ensure commercial banks pass the difference to customers, then go after corporations like PayPal Inc., to complement the 11 newly licensed international money transfer operators? Here is the logic, if the lack of liquidity in the forex market is as a result of low business confidence and high uncertainty associated with Naira assets, why not restore business confidence by addressing the nation and the world on the situation of things and the steps the central bank planned to take to resolve these issues going forward? This does not merely work for the U.K after Brexit but it has restored the economy to almost normalcy barely two months after the referendum. Both global and local investors need a clear cut policy to make informed investment decisions. The CBN will not lure investors without a blueprint. If this is done, it will not only boost business confidence but also help lower high foreign exchange rates and revamp the manufacturing sector.
No Plans To Relocate AFRICOM HQ To Nigeria Or Any Part Of Africa- U.S. Replies Buhari
The United States has said there is no plan to relocate its Africa Command from its current base in Germany to Nigeria or any other part of Africa despite the worsening state of insecurity in the region.
The US gave the response barely two weeks after President Muhammadu Buhari appealed to the US government to consider relocating AFRICOM to Africa to assist Nigeria and other adjoining countries to combat worsening terrorism, banditry and other security crises.
The President made the plea in a virtual meeting with the US Secretary of State, Antony Blinken, on April 27.
Germany-based Africa Command (AFRICOM) is the US military headquarters that oversees its operations in Africa.
Buhari’s request followed a series of recent military casualties in Nigeria’s decade-long fight against Boko Haram terrorists, fresh expansion of the insurgents’ bases to Niger and Nasarawa States, and heavy waves of abductions and killings by bandits in the North.
Buhari said, “The security challenges in Nigeria remain of great concern to us and impacted more negatively, by existing complex negative pressures in the Sahel, Central and West Africa, as well as the Lake Chad Region.
“Compounded as the situation remains, Nigeria and her security forces remain resolutely committed to containing them and addressing their root causes.
“The support of important and strategic partners like the United States cannot be overstated as the consequences of insecurity will affect all nations, hence the imperative for concerted cooperation and collaboration of all nations to overcome these challenges.
“In this connection, and considering the growing security challenges in West and Central Africa, Gulf of Guinea, Lake Chad region and the Sahel, weighing heavily on Africa, it underscores the need for the United States to consider relocating AFRICOM headquarters from Stuttgart, Germany to Africa and near the Theatre of Operation.”
However, the US government on Thursday ruled out any plan to relocate AFRICOM from its current base in Germany to Nigeria or any part of Africa.
According to the United States Department of Defence’ Pentagon, previous studies have shown that the cost of relocating AFRICOM from Germany to Africa is very huge.
In an emailed response to The PUNCH, the Pentagon said although it would continue to value Nigeria and other countries in Africa as important partners, the American government would not consider relocating AFRICOM to any part of the African continent at the moment.
This newspaper had asked if the US would consider Nigeria’s request to relocate AFRICOM to the continent.
“It would be inappropriate to speculate on any future actions. However, at this time, moving this headquarters (AFRICOM HQ) to Africa is not part of any plans, but USAFRICOM’s commitment to their mission, our African and other partners, remains as strong today as when we launched this command more than a decade ago,” US Pentagon spokesperson, Ms. Cindi King, said.
King also ruled out any plan to consider Buhari’s request in an ongoing global US defence review.
She said, “Although there is an ongoing Global Posture Review, the relocation of Combatant Command headquarters is outside the scope of its assessment. In the case of AFRICOM, previous studies have concluded that the cost associated with the relocation of this headquarters is significant and likely to incur the expense of other engagement opportunities and activities that more directly benefit our valued African partners.
“We greatly value the partnership with Nigeria and appreciate President Buhari’s recognition of the United States’ positive contribution to African peace and security, as well as other regional partners that have made similar past pronouncements. The United States remains committed to continuing our close partnership with African countries and organisations to promote security and stability.”
It’s ‘near impossible’ for America to accept Buhari’s invitation –Campbell, ex-US ambassador
Meanwhile, a former United States Ambassador to Nigeria, John Campbell, has listed reasons why it is “unlikely or near impossible” for the US government to relocate AFRICOM from Stuttgart in Germany to Nigeria or any part of the continent.
He said aside from the fact that the cost of doing so is very huge, the Nigerian military had proved to be a difficult partner for the US over the years.
China Urges U.N. States Not to Attend Xinjiang Event Next Week
China has urged United Nations member states not to attend an event planned next week by Germany, the United States and Britain on the repression of Uyghur Muslims and other minorities in Xinjiang, according to a note seen by Reuters on Friday.
“It is a politically-motivated event,” China’s U.N. mission wrote in the note, dated Thursday. “We request your mission NOT to participate in this anti-China event.”
China charged that the organizers of the event, which also include several other European states along with Australia and Canada, use “human rights issues as a political tool to interfere in China’s internal affairs like Xinjiang, to create division and turbulence and disrupt China’s development.”
“They are obsessed with provoking confrontation with China,” the note said, adding that “the provocative event can only lead to more confrontation.”
The Chinese mission to the United Nations did not immediately respond to a request for comment.
The ambassadors of the United States, Germany and Britain are due to address the virtual U.N. event on Wednesday, along with Human Rights Watch Executive Director Ken Roth and Amnesty International Secretary General Agnes Callamard.
The aim of the event is to “discuss how the U.N. system, member states and civil society can support and advocate for the human rights of members of ethnic Turkic communities in Xinjiang,” according to an invitation.
Western states and rights groups have accused authorities in Xinjiang of detaining and torturing Uyghurs in camps, which the United States has described as genocide. In January, Washington banned the import of cotton and tomato products from Xinjiang over allegations of forced labor.
Beijing denies the accusations and describes the camps as vocational training centers to combat religious extremism.
“Beijing has been trying for years to bully governments into silence but that strategy has failed miserably, as more and states step forward to voice horror and revulsion at China’s crimes against Uyghurs and other Turkic Muslims,” Human Rights Watch U.N. director Louis Charbonneau said on Friday.
Lawmakers Tensed Over Possible Boko Haram Attack On National Assembly
Lawmakers have been notified of a possible attack by Boko Haram insurgents on the National Assembly complex and other public buildings in Abuja, The media gathered.
Several members of the House of Representatives, on Wednesday, confirmed to Punch correspondent that they had been notified of the imminent attack by the terrorist group.
One of them, who is from a state in the South-West, said his presence would henceforth be limited on the premises.
“That is the security alert I saw today. I’m already moving out of here. I’ll only be around when there is a major reason to do so. Nowhere is safe in the country anymore,” he said.
Already the notice of the impending attack has been made available to the lawmakers.
The notice, a copy of which our correspondent obtained, was sent to the Speaker, Femi Gbajabiamila, other principal officers and all members of the House.
The ‘security alert’, dated May 4, 2021, was issued by the Chairman of the House Committee on Internal Security, National Assembly, Mr. Usman Shiddi.
It was titled ‘Re: planned insurgent attacks on VIP locations, government facilities and assets in Abuja.’
The alert read, “I refer to the above subject of which a copy of the intelligence report from the Force Intelligence Bureau of the Nigeria Police Force in the National Assembly Complex has been made available to my office.
“The report indicates planned insurgent attacks by some elements of Boko Haram on some VIP locations, government facilities and assets in Abuja, including the National Assembly complex.
“In view of the above intelligence, I have considered it paramount to advise that all members should, henceforth, use the presidential gate for ingress and egress.
“This is to avoid the unforeseen congestions that are sometimes encountered at the main gates since such congestions could easily be the targets for these insurgent elements.
“Security agencies are, however, actively on top of the issue to unravel and to contain the intended menace. Accept the assurances of my highest regards, please.”
Security has been beefed up in and around the complex since Thursday last week.
For the first time, security operatives on that day checked vehicles entering the premises, causing traffic congestion especially at the third (and last) gate, a process that has continued to date.
Before now, the security operatives were only after the identities of drivers and passengers to confirm that they were staff members, legislative aides, journalists, or persons working in private businesses in the complex.
The media correspondent observed that soldiers joined the regular sergeants-at-arms and men of the Nigeria Police Force, Department of State Services, Nigerian Security and Civil Defence Corps and the Federal Road Safety Corps that manned the gates.
Recall that the Governor of Niger State, Sani Bello, had on April 26, 2021, raised the alarm over Boko Haram terrorists taking over a part of the state, hoisting their flag in Kaure village from where they had made incursions into more than 50 villages.
Bello said Abuja was not safe, with Boko Haram’s presence in Kaure – a two-hour journey from the Federal Capital Territory.
He said, “I am confirming that there are Boko Haram elements here in Niger State. Here in Kaure, I am confirming that they have hoisted their flags here.”
The same day, Gbajabiamila had met with the President, Muhammadu Buhari at the Presidential Villa, in company with the Majority Leader, Alhassan Ado-Doguwa.
On the next day, the House held a long executive (closed-door) session to discuss the rising spate of insecurity across Nigeria, calling on Buhari to declare a state of emergency on security.
At the secret session that lasted over three hours, the lawmakers unanimously adopted a series of resolutions, one of which was that “the Federal Government should ensure the protection of national infrastructure and assets, particularly the Shiroro and Kainji Dams in Niger State.”
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