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CBN And Nigeria’s Cash Crunch

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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.

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Editorial

In Support Of Neighbourhood Watch Revival

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Governor Siminalayi Fubara’s decision to reintroduce the Rivers Neighbourhood Watch, also known as Rivers State Neighbourhood Safety Corps, after six years of its establishment, reflects the Governor’s dedication to the security of the residents of the state. The Neighbourhood Watch, which was established by the previous administration, serves as a community-based security organisation with a primary goal of boosting community safety, especially in addressing the prevalent issue of oil theft in the region.
Neighbourhood Safety Corps has been inactive or inadequately funded for approximately six years as a result of several administrative challenges. Governor Fubara recently convened a meeting with the leaders of the security outfit in a private setting, expressing a firm commitment to rejuvenate the organisation. This initiative is accompanied by assurances of improved assistance and incorporation into the state’s security framework.
The leader of the Corps, Wogbo Lawrence, expressed gratitude to the Governor for the initiative, emphasising the challenges the outfit faces in sustaining its operations with limited support. He mentioned that they had successfully kept about 1,150 personnel engaged throughout the 23 local government areas of the state. The Director-General of the agency, Mike Chukwuma, who is a retired Assistant Commissioner of Police and former experienced police public relations officer (PPRO) in Rivers State, also praised Fubara’s decision.
Governor Fubara’s actions exemplify a comprehensive approach to addressing local security concerns by actively involving communities, thereby establishing a potential model for state governments to interact with local residents on security issues. Nevertheless, the success of this initiative will hinge on its proper execution, adequate funding, and sustained support from the community in the long term.
Following the signing of the bill for the establishment of the agency into law by former Governor Nyesom Wike in March 2018, its complete implementation faced obstacles due to allegations from the opposition All Progressives Congress (APC) in the state. The APC claimed that the security structure was intended to intimidate its members during the 2019 elections, leading to a prolonged legal dispute that was ultimately resolved in the Supreme Court.
The Tide highly commends the Governor for his efforts in revitalising the stagnant institution. If implemented, security will be accessible throughout the entire state. This initiative will facilitate the smooth operation of businesses for all residents. By promoting the establishment of individually designed security systems by states, the prevailing security issues plaguing the nation can be effectively eliminated.
Upon the outfit becoming fully operational, it is important that the state government expeditiously address the outstanding salaries owed to the employees by the previous administration. Resolving these unsettled obligations is essential not only for boosting the morale of the workforce but also for optimising operational efficiency. Unpaid salaries have the capacity to reduce productivity and increase discontent among employees, thereby jeopardising the overall efficacy of public services.
Like any conscientious organisation, the Rivers State Neighbourhood Safety Corps has clear objectives. The objectives are (a) gathering information about crime, crime in progress, suspicious activities and crime suspects away from other things; (b) making available such relevant information on crime, crime in progress; suspicious activities and crime suspects to the police or other security agencies that require it; (c) putting structures in place to ensure that hoodlums and cult groups do not have the opportunity to operate within the state.
Others include (d) undertaking routine motorised patrol day and night; (e) reducing the crime rate and ensuring that offenders are identified and made to account for their misdeeds; (f) following up on arrest of offenders to court and ensuring justice; (g) timely reporting of suspicious activities and crimes in progress to the police or other security agencies; (h) improving relationship between the police and the community as it concerns law enforcement.
Also, (i) contributing in maintaining community peace; (j) providing the police with relevant information that will enhance their understanding of how to effectively police the communities and; (k) assisting the police carry out any other lawful activities in maintaining law and order.
Indeed, the underlying objectives of this legislation are commendable as they reflect the desire for a more secure state. Proper execution holds the potential to offer a greater sense of protection to all individuals. However, Rivers people place a strong emphasis on the agency’s neutrality. There is a lasting concern that it could be misused against political opponents, a worry that has been present since its inception in 2018. Therefore, it will be vital to establish transparency and accountability in its undertakings to address these anxieties and cultivate a truly safe environment for all residents of the state.
Unlike the previous administration, there is necessity to effectively fund the enterprise to guarantee its sustainability. Without adequate resources, the organisation faces a risk of stagnation, which could lead to it becoming inactive once more. Strategic financial investment is obligatory for maintaining operational consistency, as well as for promoting innovation and expansion. Giving precedence to financial backing can establish a strong foundation that enables the enterprise to prosper, overcome obstacles, and ultimately accomplish its mission more efficiently in a continuously changing environment.
Through the implementation of the Neighbourhood Watch programme, it is anticipated that the obstacles currently encountered by law enforcement agencies in the state will be alleviated. This initiative aims to address concerns like delayed police responses to emergencies and mishandling of information, ultimately leading to improved public safety. The outfit is expected to generate employment opportunities for the youth, foster stronger relationships, respect, and trust between the organisation and community members. Residents will feel more actively involved in crime prevention and management. Rivers people should rally behind the Governor in actualising this laudable project.

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Editorial

One Building Collapse Too Many

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The death of nine persons with 31 others injured when a seven-storey-building collapsed along Woji Road in the GRA Phase 2 axis of Port Harcourt on Friday, November 23, 2018, has once again called attention to the level of abnormality going on in Nigeria.
According to reports, the building which was under construction, collapsed after an additional floor was added to it. The government has sympathised with those who lost their loved ones. The Governor of Rivers State, Chief Nyesom Wike, who visited the site also ordered the arrest of the owner and all those involved in the construction of the ill-fated building.
Experts have said that some factors responsible for such occurrences include dominance of quacks in the construction industry, design error, poor construction supervision, conversion of residential buildings to commercial houses, abandoned structures, civil commotion; natural disasters, code of practice, effect of high temperature, developers interference, poor building materials and lack of building maintenance culture, among others.
But basic requirement for approval of building plans is that planning and design should be executed by persons with current licences from the Council for the Regulation of Engineering in Nigeria (COREN), Architects Registration Council of Nigeria (ARCON) and the Council of Registered Planners. There have been cases where building plans of a one-storey building are approved without being certified, and sealed by COREN registered engineers.
It is against this backdrop that The Tide welcomes the swift action taken by the Rivers State Government in setting up a five-man judicial commission of inquiry headed by Hon. Justice Adolphus Enebeli to look into the circumstances surrounding the collapsed building in Port Harcourt. We expect the panel to do the needful and come out with measures that will lead to a permanent solution to the menace and check the re-occurrence of such ugly incident.
We equally urge all stakeholders to place emphasis on use of right materials for construction of buildings and other infrastructure, periodic testing of building materials and concretes during construction, employment of the right calibre of professionals and artisans in the design and construction of buildings, ensure that designs are checked, cross-checked by the right professionals, sealed and approved before construction can commence.
We also suggest that Nigerians should imbibe the practice of adopting preventive, corrective and condition-based maintenance culture and reporting cases of buildings showing signs of failure to the Nigerian Society of Engineers (NSE) and Prevention Investigation and Failure Analysis Committee. By so doing, lives may be saved. Also, there should be a review and enforcement of urban planning laws to regulate building products and processes.
The professional bodies should come together and set up a development control resource centre as it has become obvious that development control in the public sector is not working. Government must come up with specific legislations and set up specific standards on building construction.
We reckon that as long as artisans are left to manage construction processes, and until defaulters are convicted and jailed, building collapse would persist in the country.
Therefore, to avert a repeat of this sad development, the prevailing disregard for professionalism must stop henceforth. Professionals engaged in building projects should be sanctioned if found culpable. Professional bodies in the built sector should as a matter of urgency demand the immediate reconciliation of all the urban and physical planning laws as well as the immediate domestication of the National Building Code.
While we commiserate with the families of victims, an improved level of compliance to constructive principles by construction industry stakeholders is required to check building collapse.

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Editorial

Ugochinyere’s Allegation, Time For PDP To Act

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Some opposition lawmakers, under the aegis of the Coalition for United Political Parties (CUPP), recently raised an alarm over a renewed plot by the 27 lawmakers of the Rivers State House of Assembly to impeach Governor Siminalayi Fubara. The legislators had defected to the All Progressives Congress (APC) from the Peoples Democratic Party (PDP) last December.
The spokesman of the coalition, Hon. Ikenga Ugochinyere, made this claim during a press briefing held in the National Assembly, Abuja. He revealed some leaked court documents signed by the PDP Acting Chairman, Illiya Umar Damagun, and the PDP Secretary, Senator Samuel Anyanwu, to aid the pro-Wike APC interest against a party in Rivers State and to assist in their attempt to remove Governor Fubara from office.
Speaking during the media chat, Hon. Ugochinyere said: “The opposition lawmakers coalition under the main opposition coalition umbrella, the CUPP, today raised serious allegations against the party’s Acting National Chairman, Mr Umar Damagum, and National Secretary, Senator Samuel Anyanwu.
“The lawmakers accused the two party leaders of a covert plot to sabotage the PDP’s interests in an ongoing legal battle involving defected former members of the Rivers State House of Assembly which is part of a desperate and shameful effort to betray their party, destroy all legal efforts and aid the pro-Wike APC elements have the legal backing to attempt their impossible plot of removing the PDP government led by Gov. Fubara out of office.”
He further claimed that the national chairman of the PDP, along with the secretary, shamefully opposed the national legal adviser’s effort to neutralise and prevent the pro-Wike dismissed APC lawmakers from jeopardising the interests of the PDP. The chairman and secretary sought to support the pro-Wike APC lawmakers who were dismissed, hoping to help them regain their lost legitimacy and make another attempt to remove their party’s governor.
No doubt, Ugochinyere’s accusation carries significant weight and raises serious concerns that warrant a thorough investigation to determine its truthfulness. It is particularly disheartening and unfortunate that such assertions are directed at the individuals holding the two highest offices in the party, as this tarnishes the integrity of the institutions they represent. The gravity of the troubling situation cannot be overstated.
We unequivocally denounce the actions of the Chairman and Secretary of the main opposition party in their purported involvement in a plot to impeach the Rivers State governor. It is shocking to witness such a betrayal of trust and blatant disregard for a dedicated party member. The governor has been tirelessly working to uplift the lives of his people and promote development in the state, only to face opposition from within his political party.
It is deeply disappointing to witness the leadership of a major political party prioritise the interests of a single individual over the well-being of the people they were elected to serve. Governor Fubara has been a beacon of hope for the PDP and residents of Rivers State, and his dedication to good governance should be celebrated and supported, not undermined by those within his party. The move to impeach him reeks of political opportunism and a lack of regard for party commitment and loyalty.
Though the PDP Governors Forum and the Board of Trustees (BOT) have condemned the move to unseat Fubara, however, to truly safeguard democracy and party dignity, they must do more than offer solidarity. They must proactively mobilise their party machinery and thwart the nefarious plans of those seeking to subvert the party’s interests. They should move against the defected 27 lawmakers and the machinations of the APC. By denying these individuals a platform within the PDP, both organs can effectively neutralise their ability to disrupt the affairs of the once formidable PDP.
Other organs of the party should collaborate and resist the chairman and the secretary. These two officers have caused enough problems for the opposition party and do not deserve to continue in their offices. The current crisis in the PDP is attributable to them and their cohort, former Governor Nyesom Wike. The constant power struggles, lack of respect for party laws, and questionable decision-making have led to a loss of trust and support from party members and the general public. The PDP must take swift action to remove these individuals from their positions to restore unity and credibility within the party.
Stakeholders must take immediate action to prevent the potential demise of the PDP. Allowing the current crisis, fueled by the self-serving actions of the implicated officials, to continue unchecked could lead to irreparable damage. These leaders must prioritise the party’s unity over personal interests. Every member must work to safeguard the PDP’s future and reinforce its role as a vital opposition force. The time for decisive intervention is now; complacency could ultimately seal the party’s fate.
Ugochinyere’s allegations demand a prompt and transparent response from those implicated; silence may be interpreted as tacit admission of guilt. The party organs must act decisively to reclaim their party. It is disheartening to witness a once awe-inspiring political party struggle to present a cohesive front, particularly with the 2027 elections looming. This fragmentation signals a troubling departure from the PDP that Nigerians once revered, raising concerns about its future viability and relevance in a rapidly evolving political landscape. Unity, discipline, and internal democracy are essential for the party’s revival.

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