Section 1 of 2
The Real Issues and What Strains Forex in the Case of Nigeria
US Dollar vs NIGERIA Naira
Looking at: The Real Issues and What Strains Forex in Such a Case
by
Appreciation and depreciation of currency is not related to race or color or who is the president be it Hausa Igbo or Yoruba. It is basically about production of goods and services and the demand of your products in the world market. A confused country that produces almost nothing will never meet up, policies only control your currency not the value of another country’s currency against yours.
A country where over 500 industries died within 30 years must be stupid to complain of depreciation of her currency. We keep killing local industries and expect policies to make it up, it's a joke sir. Don't use China as an example of depreciating currencies and strong economy, China produces and may attract more export with that strategy unlike Nigeria that produces nothing.
A country where someone carried “$2billion+” simply to be shared is already a doomed one in terms of monetary policy and value. A country that produces Dizeani and Bafarawa who spent billions to appease demons. Money without economic value is an economic poison injected into the system.
A country that favours importation over local production is doomed because it creates employment for another country while sacking her own citizens. Some people are working in Michelin and Dunlop somewhere, yet we use the tyre here. Don't tell me the principle of comparative advantage here, it's not applicable.
A country that exports all raw materials without adding value is shameless to talk of depreciation of currency, to later re-import finished products of that materials is the peak of daftness. A bag of cocoa will go for like N1 million naira but when it is processed it will be worth around N7million. Even farmers who produced raw cocoa can't buy chocolate.
A country that deliberately operates a banking system that gives loans to importers at the expense of local industries is doomed and should say nothing about depreciation. Most of the loans are given to senators and representatives not industrialists.
A country that gives loans in billions to the agric sector without monitoring & evaluation of such loans on how it gets to the real farmers is a sham. A guy collected over N2 billion agric loan, he bought a jeep, built a nice house and used the rest to import processed pork. Meanwhile, local pork farmers are dying here. Is that not a double tragedy, stressing forex at the same time killing local industries.
A country that spends more on privileged politicians at the cost of the populace who are unemployed should not talk about money depreciation. A country that keeps paying NNPC staff N10 billion as salaries every month when a single drop of petrol was not processed shout shut up about depreciation of currency. Crime is rising as value added to the initial failure.
A country where it is difficult for investors to register businesses because of the governent officials demanding bribes. Right from airport, to hotel, to minister to governors investors will bribe, all these are part of the cost of investment. A friend brought an investor on estate development just for the state commissioner in charge to demand 30% of the investment. To see the governor in a state will cost you N2 million as bribe before you can be scheduled. This is a state as poor as anything.
A country where the cost of travelling for treatment abroad by officials will build world class hospitals should not talk about naira against dollar parity. Money taken to that trip is part of stress on forex. Same as forex spend on pilgrimage, let religion fanatics keep off me here. Without going to Mecca or Jerusalem you can still make heaven. You waste forex on pilgrimage to later be talking rubbish about forex.
A country where few people have access to federal reserve and those few can get loans are not because of what they can produce but the connection they have, is that country not gone already?
A country where we import what we produce because it's cheaper over there is gone.
A country that has arable land, teaming idle youths and still complains of hunger should not talk about currency depreciation. It's annoying.
A country where free money flows can never control inflow and outflow of forex. Imagine someone who wants to hide his loot went to Aboki to buy dollars worth $50 million just to hide it in the basement of his house. That money has no economic value yet it deprived those companies that need it to import raw materials, those companies go to Aboki to buy at exorbitant prices.
A country where a strong bank owner can influence shares from within the Stock Exchange room to inflate their shares worth from N20 to N150, crash the same share to N30 and ready to buy it back at N28 all within a year. Forget it, currency will never appreciate in such an economy.
A country where banks are involved in round tripping and inflated cost to siphon money is doomed. A company wants to import tractor caterpillars worth $50,000. A bank made the forex $550,000j meanwhile no tractor was imported at last yet the money faded into private accounts.
Who strains forex in such a case?
Section 2 of 2
EMINENT ELDERS FORUM CALL FOR RESTRUCTURING AND ADOPTION OF 1963 CONSTITUTION
EMINENT ELDERS FORUM (EEF)
PRESS RELEASE
4TH DECEMBER, 2020
PREAMBLE
The Eminent Elders Forum (EEF) comprises of very top ranking senior citizens that have transversed all spheres of human endeavours including the very high politically exposed; high ranking fellows in the executive, legislative, judiciary, police, military, civil, public and private sectors of our country, Nigeria.
Many of the members of the Eminent Elders Forum are far into their retirement from active service but came together to offer elderly advisories, to reminisce, share experiences and contribute to the well being of humanity.
The Eminent Elders Forum is a political, non religious, non tribal/ethnic, non racial and non discriminatory body with currently listed membership of over 300 of highly cerebral, accomplished and diversely distinguished eminent elders across the country.
Recently, the body had a two-day online Meeting/Discussion, precisely on
21st and 22nd of November, 2020 on the topical national issue of restructuring the polity and constitutional amendments.
The subject matter, as stated above, was whether:
To amend the 1999 Constitution or replace it with the 1963 Constitution?
To continue with the presidential system or revert to the parliamentary system?
What system do we prefer? Unitary, Federal with strong/weak federating units? Or confederation?
What type of legislature should we operate at the federal level from 2023 – unicameral or bicameral
As expected of high level discussions on nation
DISCUSSIONS
Discard the 1999 Constitution and replace it with the 1963 Constitution with Amendments to reflect the current realities in the country.
Adopt Confederation with the Bicameral legislature.
Draft a completely new constitution that meets the aspiration or truly representative of the people of Nigeria.
The above impute were informed by the fact that:
The1999 Constitution is found defective in many aspects and gave the centre an unfettered power while reducing the states to mere appendages, hence the clamour for re-structuring and amendments to the said 1999 constitution. Therefore, the best option is to have our elected representatives redesign a constitutional document that can be subjected to a referendum by the people of Nigeria.
The 1999 Constitution, premised on the presidential system, is considered too expensive for the country. Therefore, we cannot continue to operate it as the Constitution of the Federal Republic of Nigeria.
The 1960/1963 Constitution is a parliamentary system that guarantees true Federalism and devolves more power from the center to the states (Federating Units).
EEF is therefore of the opinion that Nigeria should return to the 1963 Constitution with appropriate modifications.
We advise that Constitution alignment should begin with totally independent systems that throw up best leadership for totally independent federating states, units or agreed structures. We advocate for:
St rict commitment and compliance to the rule of law, equity and discipline with the fear of God.
Electronically transparent electoral protocol/process.
Fairness, equity and justice to all regardless of religion, ethnic or cultural considerations in all aspects of governance.
A parliamentary system with a redefinition of the regions/zones with the old Mid-Western region being part of it.
A unicameral legislature with members working part time and entitled to sitting and transport allowance especially in this age of technology advancement.
Abrogation of the unitary system which is a command system only fit for the military. The state/regions as federating units should be strengthened and given more responsibilities/power.
Reduce the items in the exclusive lists to the advantage of the concurrent.
Although we have political imperatives, the rationale
for urgen t change is now economic. Nigeria is dead broke (in recession) and bankrupt. As a result, the administrative cost of governance should be reduced drastically i.e. we can no longer afford the salaries or remunerations of the followings:
774 Chairmen and their councillors of Local Government Councils.
36 State Houses of Assemblies and 36 State Governors, Deputies with scandalous and outrageous security votes.
42 Ministers and Permanent Secretaries and over 700 MDAs at Federal Level. There is a need to drastically reduce the recurrent expenditure especially now in the face of recession.
Given the many defects of the 1999 Constitution and the many challenges of amendments, the best option in the circumstance is to draft a new constitution or simply adopt the 1963 Constitution with amendments to reflect the following:
A truly federal system of government composed of semi-autonomous regions and less attractive central government.
The Federal Government will handle its statutory d
The new arrangement will include a national referendum which would be an instrument required to ratify and legitimize the recommendations of the constituent assembly.
The general consensus here is that there must be structural changes in our constitution before the next election.
The contention is that the four regions that informed the 1963 constitution - Eastern, Northern, Midwestern, and Western Regions should constitute the minimum base for the establishment of regional governments.
That for the purpose of equity, the Midwest region should always be taken as equal to the other regions regarding any restructuring. The six geopolitical zones should be incorporated in the 1963 Constitution. The geopolitical zones ca
The seven suggested regions are as follows:
The Midwestern Region shall consist of Edo and Delta States in the present South South geopolitical zone.
The South South Region sh
all consist of Rivers State, Bayelsa State, Akwa Ibom State and Cross Rivers State in the present South South geopolitical zone.
The North Central Region shall consist of States in the North Central geopolitical zone
The North East Region shall consist of states in the North East geopolitical zone.
The North West Region shall consist of states in the North West geopolitical zone
The South Eastern Region shall consist of States in the South East geopolitical zone.
The South West Region shall consist of stat
es i n the South West geopol itical zone.
CONCLUSION
Replace 1999 Constitution with 1963 Constitution with Amendments to reflect today’s realities in Nigeria.
Revert to a parliamentary system of government because it is cheaper and the burden of governance is lighter with less corruption and more development oriented.
Adopt a Federal system of government with strong federating units but with right provisions to make it difficult for any of the federating units to pull out of the Union.
Adopt a unicameral legislature which is cheaper and with less internal party crisis.
Consider the adoption of seven regions as stated above or more.
The present states in each of the proposed regions shall serve as provinces in the region.
Each province shall be headed by a Provincial Administrator.
The mineral resources and VAT in each region shall be under the control of the Regions/States. The Region/States shall however pay an agreed percentage of the revenue and VAT to the federal government.
For effective and efficient, effective and workable security architecture, the Police shall be decentralised to reflect the federal, regional and provincial administration that would eventually emerge”.
There
is a strong argument and recommendation to revert to our 1963 Constitution. Instead of the recurrent ritual and wasteful efforts in attempts to amend the present comatose 1999 Constitution, the National Assembly should simply delete the schedule that incorporate the 1999 constitution into military decree that created it (which is now assumed to be an act of the National Assembly) and replace it with the 1963 Constitution for the concurrence of the States House of Assembly, to become operational come 2023 at the expiration of all the current elective positions as an act of the National Assembly.
This new act of the National Assembly that incorporates the 1963 Constitution should then become the basis for all elective offices come 2023.
By this act, we would have achieved the followings:
Restructuring of the polity and
A cost effective, time saving
and easy to operate constitution that reflects truly “WE THE PEOPLE”
The 1963 Constitution holds the ace. A
The addendum to the proposed bill would be guidelines and procedures for transition in a period of 2 to 3 years, that is,
SIGNATORY
His Excellency, Distinguished Senator Ibrahim Nasiru Mantu CFR - Chairman, EEF Interim Steering Committee (ISC).
Dr. Akin Fapohunda - Secretary, EEF Interim Steering Committee (ISC).
Professor Chukwuemeka Eze Onukaogu - Chairman, EEF Resolutions/Communique Committee.
Elder Muyiwa Ayo-Vaughan - Secretary, EEF Resolutions/Communique Committee.
Elder Smolette Adetoyese Shittu-Alamu - Chairman, EEF Media and Publicity Committee.
Chief Anayo Arinze - Secretary, EEF Media and Publicity Committee.
Professor Echefuna' R. G. ONYEBEADI - Convener/Coordinator.
Administration Oloye Adeniji
However, those opportuned to be in leadership positions presently will not listen or set up appropriate structures to implement any idea that will make them lose their present status or truncate their proje
