Editorial

CBN And Nigeria’s Cash Crunch

Published

2 years ago

July 15, 2024

Nigerians have, again, been thrust into desperation as they grapple with cash shortage that has cast a dark shadow over their daily lives. Months after the Supreme Court’s ruling permitting the coexistence of the old and new naira notes, the crisis persists, leaving countless individuals struggling to secure basic necessities.
The scarcity of naira notes has partially crippled commerce throughout the country, especially in the informal sector. Businesses are incapacitated, unable to complete transactions efficiently, resulting in a slowdown of economic activities. Some people are left in dire straits, desperate for cash to meet essential expenses such as food, transportation, and healthcare, among others.
The cash crisis has created a fertile ground for unscrupulous elements and businesses to engage in predatory tactics. Retailers are exploiting the despair of consumers by overcharging for goods, while others hoard cash to sell at inflated prices. This rampant profiteering has further burdened the already strained financial resources of many Nigerians.
It is deeply concerning that while the citizens are still contending with the fallout of a failed disastrous currency redesign policy last year, the Central Bank of Nigeria (CBN) has initiated another misguided scheme that has exacerbated the scarcity of the legal tender. This ill-conceived move is implemented at a time when Nigerians are already struggling with inflation, rising unemployment, and declining living standards. The CBN’s actions have only served to compound their plight.
The timing of the plan is particularly cruel and demonstrates a fundamental lack of consideration for the well-being of ordinary Nigerians. The Central Bank has failed to adequately assess the severe consequences of its policies on the lives of citizens, who are now compelled to endure an atmosphere of uncertainty and hardship.
Despite the apex bank’s assurances of sufficient naira notes in circulation, the cash dilemma continues to torment Nigerians. The situation has worsened following introduction of withdrawal limits by the nation’s financial authorities, leading to an increased reliance on Point-of-Sale (POS) terminals. However, this dependence has come at a steep cost.
POS service providers have taken undue advantage of the shortage by imposing exorbitant charges, further burdening consumers. The surge in charges has negated the convenience of POS transactions, driving up the overall cost of obtaining cash. The CBN’s claims of adequate cash supply ring hollow in light of the predatory practices of POS operators.
Currently, naira scarcity has gripped major cities across the country, with Automated Teller Machines (ATMs) running dry and commercial banks introducing withdrawal limits. Consequently, POS operators have compassed the moment to exploit the situation. Investigations have revealed that some bank officials who own POS businesses, channel cash meant for the public to these outfits. This is economic sabotage. These unpatriotic Nigerians must be identified and punished appropriately.
The Acting Director of Corporate Communications at the CBN, Mrs Hakama Sidi Ali, has acknowledged that there has been a rise in the amount of money in circulation. However, she claims that the scarcity of cash is due to individuals hoarding it. This explanation contradicts the actual situation on the ground, as numerous banks have been unable to fulfil the daily requests for cash withdrawals.
This is why it is required for the Federal Government to promptly intervene and resolve the difference between what the Central Bank asserts and the actual availability of cash. They should contemplate raising the limits for cash withdrawals, improving access to banking services in areas that lack sufficient coverage, and partnering with mobile money platforms to offer alternative payment options.
To restore confidence in the banking system and help Nigerians affected by the current liquidity crisis, it is necessary to make coordinated attempts to increase the amount of cash in circulation. This can be achieved by taking strict actions against unfair point of sale charges and implementing measures to safeguard consumers from excessive profit-making. The Central Bank can address the liquidity crisis by implementing these steps, and provide relief to the suffering population.
While we promote alternative modes of payment, including electronic channels, to reduce pressure on cash, the authorities must recognise that resolving the cash crunch is not merely an economic issue. It is a matter of social justice. Every Nigerian deserves easy access to their hard-earned money without being subjected to inordinate drudgery. The government has a moral responsibility to address this crisis swiftly and effectively to restore financial stability and ensure the well-being of all its citizens.

Editorial

Restructure the UN Power Arrangement

Published

7 days ago

October 19, 2026

The Tide

When Vice-President Kashim Shettima rose in New York on behalf of President Bola Tinubu to address the general debate of the 81st session of the United Nations General Assembly, he carried a message that Africa has whispered, petitioned and pleaded for far too long: the world’s highest table of peace and security must make room for the continent. Nigeria’s demand is unambiguous: at least two permanent seats for Africa on the Security Council, with full rights, including the veto, alongside five non-permanent seats. It is a demand that deserves a fair hearing and a decisive response.

The President’s argument rests on a simple proposition: the architecture erected in 1945 cannot credibly govern the world of 2026. Reform of the United Nations, he insisted, must begin with the Security Council, where African representation remains grossly inadequate. Nigeria’s position, he reminded delegates, is anchored in the Ezulwini Consensus and the Sirte Declaration, which together articulate the African Union’s common position on Security Council reform. His most compelling point was also his simplest: Africa cannot continue to dominate the Council’s agenda while remaining absent from its permanent membership.

Consider how exclusive the club remains. Since the organisation’s founding, only five countries—the United States, the United Kingdom, France, Russia, which inherited the Soviet Union’s seat, and China—have held permanent membership, with the privilege of the veto. When the UN Charter entered into force, the United Nations had 51 member states; today, it has 193. The organisation’s membership has nearly quadrupled, yet its inner sanctum has admitted no new permanent member in eight decades. A body that refuses to evolve invites the charge that it remains a monument to the victors of a long-concluded war.

The imbalance becomes even more striking when viewed through the lens of geography. Europe has two permanent seats held by European states, while Asia has one held by China. The United States holds another, and Russia, whose territory spans Europe and Asia, occupies the fifth. Africa, home to 54 countries and more than a quarter of the General Assembly’s membership, has none. We are entitled to ask why the historical circumstances of 1945 should continue to determine who sits permanently at the head of the table in the third decade of the twenty-first century.

The irony is bitter. According to Security Council Report, an independent monitoring organisation, Africa accounts for a substantial share of the Council’s formal meetings, while many of its peacekeeping and Chapter VII enforcement mandates concern African states. The Council, in effect, helps determine the fate of African nations without a permanent African voice in its deliberations. To make decisions with far-reaching consequences for a continent while excluding it from permanent decision-making is unjust, outdated and corrosive of the very legitimacy the Council claims.

Nor does the existing arrangement for African participation offer much consolation. Three non-permanent seats are allocated to Africa, but their occupants serve two-year terms, have no veto and enjoy no guaranteed continuity. The so-called A3 must repeatedly learn the corridors of power just as their tenure expires, while the permanent five enjoy continuity, influence and the power to block decisions. How can the United Nations credibly claim to represent the world equitably when an entire continent is excluded from permanent membership? If it is truly a global institution, Africa must have a seat at the table as of right, not at the discretion of others.

Demography reinforces the case. Africa is home to about 1.5 billion people, roughly a fifth of humanity, and its share of the global population is projected to rise. Nigeria, the continent’s most populous country, has an estimated population of more than 230 million and a long record of contributing to peacekeeping and regional stabilisation. Africa’s permanent representatives must be chosen through a process that reflects the continent’s collective interests, and Nigeria, by virtue of its population, diplomatic standing and record of service, is well placed to be considered for one of the two seats. We, therefore, endorse the Federal Government’s position that Africa should have at least two permanent seats on the Security Council.

The vexed question of the veto deserves equal candour. Our considered view is that the veto should be abolished. Where four members agree, a single dissenting voice should not be allowed to frustrate the will of the majority. Time and again, the veto has paralysed the Council in the face of atrocities and aggression, turning deliberation into deadlock and undermining collective action.

The African Union’s formal position is pragmatic: if the veto is abolished for all, so be it; but for as long as it survives, Africa must not be saddled with second-class membership without the same privilege. This is a logical and defensible position, even if the complete abolition of the veto remains the more desirable goal.

The lopsided composition of the Council helps explain why the international community has struggled to make meaningful progress on some of the world’s gravest conflicts. A chamber in which a handful of powers pursue their strategic interests, with limited accountability to the regions most affected by its decisions, can hardly be described as democratic. Legitimacy is the currency of any international institution. When that legitimacy is squandered, confidence in the Council’s decisions weakens, and the cause of multilateralism suffers.

Several practical steps should follow. First, Abuja and the African Union must speak with one voice, agreeing on the criteria for selecting Africa’s representatives and establishing a credible process for identifying candidates for the two seats. This would prevent internal divisions from being exploited by opponents of reform. Second, Nigeria should build alliances beyond the continent, notably with Brazil, Germany, India and Japan, as well as Caribbean and Pacific states that share an interest in reforming the international system. Third, Nigeria must continue to strengthen its credentials through sustained contributions to peacekeeping, sound democratic governance, and timely financial contributions to international institutions.

The Security Council was fashioned for a world that has long since vanished. To pretend otherwise is to court irrelevance. Africa is asking not for charity but for representation commensurate with its population, its responsibilities and its potential. Reform is long overdue, and the international community can no longer afford to ignore the issue. President Tinubu has set out Nigeria’s case with clarity; it is now incumbent on the major powers to demonstrate that the United Nations is a community of nations, not a private club reserved for the victors of a bygone era. History will judge them by how seriously and swiftly they respond.

Editorial

Time To Resolve The Pension Crisis In Rivers

Published

2 weeks ago

October 12, 2026

The Tide

The prolonged suffering of Rivers State pensioners who have remained unpaid since retiring in July 2025 demands urgent executive and legislative intervention. The Nigeria Labour Congress (NLC) has rightly put its finger on the Contributory Pension Scheme (CPS) as the root cause of this crisis. The state government must now bite the bullet, dismantle this failed experiment, and bring the pensioners’ protracted ordeal to an end.

Since July 2025, the affected retirees have been left high and dry, their monthly pensions unpaid, and their dignity worn away. The NLC, under the leadership of Comrade Alex Agwuanwon, has also linked this deplorable situation to the political storm that engulfed the state, while expressing cautious optimism that the prevailing calm will pave the way for the payment of outstanding arrears. The Tide shares that optimism. However, optimism alone will not put food on the table for men and women who gave the best years of their lives to the service of the state.

The genesis of this crisis is not shrouded in mystery. The CPS was introduced in Rivers State in 2012 under the administration of former Governor Chibuike Rotimi Amaechi, pursuant to the Rivers State Pension Reform Law of that year. The scheme was ostensibly designed to bring the state into line with the federal Pension Reform Act of 2004, which had established a contributory framework for retirement benefits across the country. What was sold as a progressive reform has, in truth, become a millstone round the neck of the very workers it was meant to protect.

The CPS has failed in the state, and it has failed spectacularly. Its fundamental flaw lies in the government’s chronic inability, or unwillingness, to honour its counterpart funding obligations. The arrangement was meant to be a joint endeavour: employees contribute a portion of their salaries, and the employer matches it. But the state has consistently failed to keep its side of the bargain, leaving the pension fund anaemic and unable to meet its obligations. The result is as predictable as it is unconscionable. Retirees are left with only their own contributions to fall back on, a mere pittance that cannot see them through their twilight years.

The human cost of this institutional failure is staggering. Men and women who devoted decades to the civil service now find themselves cast adrift, their legitimate expectation of a secure retirement shattered. The psychological toll of such betrayal is beyond measure. A pension is not an act of charity. It is a contractual obligation, a deferred wage for services already rendered. To withhold it is to break a sacred trust. The authorities must understand that every delay in resolving this crisis costs lives, both in the literal sense as elderly retirees struggle to pay for healthcare and sustenance, and in the figurative sense as the social contract between the state and its workforce wears thinner with each passing month.

This development does not show the government in a favourable light. For a state to allow people who served it with dedication and integrity to languish in penury after retirement is morally indefensible. It sends a chilling message to serving civil servants that loyalty will be repaid with abandonment. This is precisely why organised labour must not rest on its oars. The NLC’s call for the termination of the CPS is not mere grandstanding. It is a necessary corrective. The scheme, as presently administered, is irredeemably broken and must be done away with.

The most damning indictment of the CPS since its inception is its one-sidedness. The government has failed to pay its counterpart funding, reducing the scheme to a hollow shell. Of what use is a contributory arrangement when only one party contributes? Retirees cannot be expected to live on the meagre sums they themselves set aside, sums which have been steadily eroded by inflation and administrative charges. Workers have been short-changed, left to carry the can while the government looked the other way. It is a quiet expropriation of their future.

The time to put this right is now in the interest of justice, equity, and fairness. The NLC should push harder for the swift implementation of its committee’s report to Governor Siminalayi Fubara. That report contains a sensible and pragmatic recommendation: that the CPS should apply only to those employed in the year it was enacted, thereby allowing existing civil servants to remain under the Defined Benefit Scheme (DBS) to which they were originally entitled. This is not a radical proposal. It is a reasonable compromise that recognises the legitimate expectations of long-serving workers and rights the wrongs of the past.

The authorities must act with dispatch. Governor Fubara should, without further ado, send a draft amendment of the Pension Law to the House of Assembly for passage into law. With such legislative intervention, those who retired from July 2025 to date would be returned to the DBS, receiving pensions calculated on their terminal salaries and years of service rather than the paltry sums available under the failed contributory arrangement. The NLC, for its part, should keep its foot on the pedal through dialogue, advocacy, and, if necessary, peaceful protest. Pensioners deserve not just fine words but concrete action.

Rivers State cannot lay claim to be progressive while its retirees are forced to go cap in hand for their rightful entitlements. The measure of any civilised society is how it treats its elderly. By that yardstick, the present situation is a blot on the state’s escutcheon. The government must clear the backlog of arrears, scrap the CPS for the category of workers it should never have applied to, and restore the DBS in full. Nothing less will suffice.

Editorial

Forestalling Ondo Herbal Drink Tragedy

Published

2 weeks ago

October 9, 2026

The Tide

The recent public health disaster in Ondo State, which claimed 48 lives and left 182 people severely ill, is a gloomy reminder of the dangers posed by unregulated beverages. According to NAFDAC Director-General, Prof. Mojisola Adeyeye, the victims consumed contaminated local alcoholic and herbal drinks in communities in Odigbo Local Government Area. The drinks contained high levels of industrial methanol, while 11 of 15 samples also contained Cannabis indica. The substances were linked to organ failure, neurological deterioration, and permanent blindness. The tragedy should serve as a warning to the entire country.

The incident underscores the wider problem of unregulated and adulterated drinks across Nigeria. From roadside kiosks and motor parks to informal markets, unverified alcoholic and herbal products are readily available, often marketed as cheap alternatives or medicines. The World Health Organisation estimates that about 25 per cent of alcohol consumed globally is unrecorded. Such products operate outside formal regulatory control and may expose consumers to toxic substances and serious health risks.

The problem is compounded by deliberate evasion of regulatory requirements. Products under NAFDAC’s mandate must be registered and subjected to regulatory checks before manufacture, distribution, or sale. Yet some producers ignore these requirements for profit, while others falsify NAFDAC registration numbers and markings and use them on substandard products. Such practices deceive consumers and undermine public confidence in the regulatory system.

The reported arrest of 15 suspects linked to the Ondo distribution network is an important first step. Those found responsible should be prosecuted and, where convicted, appropriately punished. However, enforcement must go beyond responding to tragedies. NAFDAC should strengthen preventive measures through regular post-market surveillance, random testing at transit points, and intelligence-led inspections of informal production centres.

Consumers also have a responsibility to exercise caution. Economic hardship, high inflation, and declining purchasing power have created opportunities for unscrupulous producers to market cheaper but potentially dangerous products. Consumers should, therefore, avoid unlabelled drinks, suspiciously cheap products, and goods sold through unverified outlets. Public education and consumer vigilance can help deny unscrupulous traders the opportunity to put profit before human life.

The danger extends beyond alcoholic and herbal drinks to medicines. Counterfeit and substandard medicines have entered both formal and informal supply chains, causing treatment failure, poisoning, and avoidable deaths. The WHO estimates that at least one in 10 medicines in low and middle-income countries is substandard or falsified, although the prevalence varies. Ensuring the safety and authenticity of medicines is essential to protecting lives and maintaining confidence in the healthcare system.

Food safety is another concern. Poor practices in food handling, processing, and preservation expose consumers to serious health risks, particularly when commercial interests override safety. Concerns over the improper use of chemical agents such as calcium carbide to accelerate the ripening of fruits further demonstrate the need for stronger monitoring throughout the food-supply chain.

These challenges expose weaknesses in Nigeria’s regulatory system and reinforce the need to strengthen it. NAFDAC faces the enormous task of monitoring products across all 774 local government areas. Meeting this challenge requires greater operational capacity, reduced bureaucratic delays, and modern systems capable of tracking regulated products from production to the point of sale.

Inadequate personnel, laboratory facilities, equipment, and logistics remain major obstacles. NAFDAC field offices, especially those serving remote communities, need modern testing equipment, reliable screening tools, and adequate transportation. The Federal Government should provide sustained funding to recruit specialised personnel, upgrade laboratories, and deploy technologies capable of rapidly detecting dangerous substances such as methanol.

Preventing the spread of adulterated products also requires coordinated action by federal and state governments. The Federal Ministry of Health, NAFDAC, and other relevant agencies should intensify operations to remove unregistered alcoholic and herbal products from motor parks, transit centres, and informal markets. The National Assembly should review existing laws and strengthen penalties for deliberately producing, falsifying, or distributing toxic and unregistered food, beverages, and medicines.

NAFDAC should expand its digital verification systems to enable consumers to confirm product registration before purchase. State ministries of health, local government councils, and community institutions should intensify grassroots education on the dangers of unlabelled drinks, unsafe food practices, and counterfeit medicines. Traditional, religious, and community leaders can also help identify and report illegal production and distribution activities.

The Ondo tragedy must not become another statistic that is quickly forgotten. The loss of 48 lives and the permanent blindness suffered by some survivors are devastating and unacceptable. Nigeria must respond by strengthening regulatory institutions, providing adequate funding, enforcing the law, and educating the public. A sustained, coordinated effort is essential to protect the nation’s food, beverage, and medicine supply chains and prevent another tragedy caused by products that should never have reached the market.