Editorial
CBN’s E-Naira Gamble
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Is Nigeria putting out its Bitcoin? Will the Naira equal the value of the dollar? Shall we conserve our Naira on crypto exchanges? These and many other concerns need to be raised and addressed as the Central Bank of Nigeria (CBN) lays the groundwork to launch a digital currency for the country this October. Financial connoisseurs say that over the past two years, CBN has researched the technology and made portentous progression.
During the Monetary Policy Committee (MPC) meeting on Tuesday, 27 July 2021, the CBN Governor, Godwin Emefiele, confirmed the start date of Central Bank Digital Currencies (CBDCs) for October 2021. Since 2017, the CBN has been researching CBDCs alongside over 80 per cent of central banks, and only the Bahamas, Eastern Caribbean and China have enforced them.
Emefiele claimed the economy was going digital and “cash cannot play in that space,” adding that “e-Naira which will represent the digital equivalent of cash will be used as fiat currency for transactions”. On how the e-Naira will work, the CBN boss stated: “If you choose to convert some of the Naira in your account to e-wallet or digital currency, we will support that.
“When this starts, the CBN will move some of the balances in CBN to those banks into digital currency. You go to your bank, you decide to move N2 million from the N10 million you have in your account to digital currency, they will debit your account and move it into your e-wallet. Then you have N2 million digital currency which you can spend across countries”.
According to Emefiele, “the use of cash is declining all over the world,” noting that “with the advent of digital currency, more and more people are adopting the use of electronic money to facilitate little commerce”. He believes that cryptocurrencies are private funds that are not regulated, so using them is a personal decision.
Recall that the Central Bank banned and warned players in the financial ecosystem against conducting any crypto transactions or facilitating payments for crypto trades in a circular dated 5th February 2021 and circulated to financial institutions. In addition, the CBN called on all financial institutions to immediately shut down the accounts of any individual or business involved in or operating cryptocurrency businesses. With the ban, Nigerians have turned to peer platforms that bypass these rules.
In support of that decision, the apex bank had previously issued an avowal that digital assets developed by unregulated and unregistered companies raised legal concerns. The CBN further says that crypto assets are used to support a variety of illicit activities, including money laundering and terrorism. Hence, the e-Naira is a step in the direction of satisfying people’s demands for a digital currency in this technology-driven age.
CBDCs are issued by the government. Whereas they may share similarities with crypto currencies (such as operating on a “blockchain”), they are not necessarily the same. Cryptocurrency transactions can be done with the aid of decentralised “blockchain” technology. With the CBN as the primary controller, the CBDC has a mainline topology. Moreover, cryptocurrency is not recognised as legal tender in Nigeria, but the CBDC will be acknowledged by the CBN as legal tender. That is, CBDCs are the direct responsibility of the Central Bank, but cryptocurrency is not the liability of the apex bank or its regulated institutions.
A CBN source revealed the stages of carrying out the plan, saying the first stage of the proposal would be assessment and socialisation, including setting goals. CBDC design is the next step, meaning the technical infrastructure required to purchase and manage digital currencies. The third stage is to undertake a feasibility and viability analysis using a proof of concept. CBN will then take training and information steps to introduce the CBDC. Ultimately, the apex bank will ensure that CBDC is fully implemented across the country.
We fully maintain any action to reanimate the Naira to enhance its global value in exchange and promote a rapid growth of the economy. However, several questions remain unanswered about the upcoming project. We are unsure what to expect, in particular how cross-border payments will operate; how the confidentiality and security of the digital currency will be guaranteed.
The question is whether e-Naira will be treated as an essential national infrastructure to protect against operational and cybersecurity risks. Again, will there be a co-existence of traditional payment systems and the CBN Digital Currency to address interoperability risks that might be associated with the implementation?
For the policy to function effectively, there is a need for adequate awareness and education of the masses on its benefits. A further challenge in implementing this programme is the high rate of illiteracy. Many in remote villages are not financially literate enough to understand how cashless or digital transactions can work, particularly bearing in mind that those at the hinterland often lack entree to the banking system.
CBN has indexed the benefits of the digital currencies, including macro-management and growth, facilitating cross-border trade, financial inclusion, monetary policy effectiveness, increased payment efficiency, revenue tax collection, increased remittances, and targeted social interventions. Other benefits are lower costs of minting and printing physical currency, less fraudulent activity, circulation of counterfeit currency and armed robbery.
Although the apex bank has not expressed the flaws of this idea, the reality is that the proposed digital currency cannot be without obstacles. Some obvious defects are that quite a few Nigerians are not proficient in the use of technology, and most considerably, transactions may be subject to unrestricted monitoring.
Editorial
Solid Minerals, Cesspit Of Corruption
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The recent revelations by former Labour leader and current Chair of the Senate Committee on Interior, Senator Adams Oshiomhole, have exposed a deeply troubling reality in Nigeria’s solid minerals sector. His disclosure that former military generals and foreign operators have systematically seized control of the country’s mineral deposits illuminates the extent of institutional decay and regulatory capture plaguing this vital economic sector.
Minister of Solid Minerals, Dele Alake’s confirmation of these allegations strengthens Oshiomhole’s claims. The minister’s clear identification of “powerful Nigerians” as the masterminds behind illegal mining operations, along with their alleged ties to terrorist financing networks, paints a troubling picture of the complex web of corruption that is undermining national security.
The audacious manner in which these mining syndicates operate reflects their deeply entrenched position within Nigeria’s power structure. Their apparent immunity from prosecution or oversight demonstrates how thoroughly they have infiltrated key institutions, enabling them to continue their exploitative activities without fear of consequences. This systemic failure has persisted across multiple administrations, highlighting the challenge of confronting these well-connected networks.
Former President Muhammadu Buhari’s tepid response to detailed intelligence briefings about the crisis represented a significant failure of leadership. The current administration under President Bola Tinubu appears to be following a similar pattern of inaction, raising serious questions about the political will to address the endemic corruption. This continued paralysis suggests either inability or unwillingness to challenge powerful vested interests.
The grim contrast between enforcement approaches in different regions of Nigeria reveals troubling inconsistencies in governance. While unauthorised petroleum refineries in the Niger Delta face swift and severe military action, illegal mining operations in the North continue largely unimpeded. This disparity in enforcement not only undermines the rule of law but also fuels regional tensions and perceptions of discriminatory treatment.
Selective enforcement practices by the government have created a dangerous precedent. Small-scale refiners in the South face immediate persecution, while large-scale illegal mining operations in the North proceed with apparent impunity. The uneven application of law enforcement has exacerbated security challenges and deepened existing regional divisions.
Shamefully, the deafening silence from authorities regarding widespread corruption in the mining sector strongly suggests high-level complicity. The “conspiracy of silence” has created an atmosphere of resignation among citizens, who witness the systematic looting of their national resources by a privileged few operating outside the bounds of law and accountability.
Further compounding this crisis is the psychological impact on the Nigerian populace. The visible impunity enjoyed by these mining cartels has fostered a sense of helplessness among ordinary citizens, who increasingly view government institutions as serving the interests of a corrupt elite rather than the general public.
Immediate and decisive actions are required to dismantle these criminal networks and restore integrity to the mining sector. Superficial reforms or symbolic gestures will prove insufficient; what’s required is a comprehensive strategy to investigate, prosecute, and punish all parties involved in illegal mining activities, regardless of their status or connections.
No one can imagine the security implications of allowing illegal mining to continue unchecked. The illicit funds generated from these operations provide essential financing for criminal organisations and extremist groups, creating a direct link between mineral theft and national security challenges. Addressing illegal mining therefore becomes critical for both economic and security reasons.
Reform of the extractive sector must extend beyond enforcement to include comprehensive regulatory overhaul. New frameworks must be established to ensure all mining operations adhere to strict environmental standards and contribute appropriately to national development. This includes implementing transparent permitting processes and ensuring proper revenue collection and distribution.
Transforming Nigeria’s mining sector represents a vital test of governance and national resolve. Success requires not only technical solutions but also the political courage to confront entrenched interests and implement lasting reforms. The future prosperity of Nigeria depends remarkably on whether its leaders can summon the will to protect and properly manage its vast mineral resources for the benefit of all citizens.
Editorial
Checking Terrorism Spread In The South
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The intensified Nigerian Military campaigns against terrorists and bandits in the North have started to produce promising results, signalling a cogent turning point in the nation’s battle against insecurity. For years, these despicable elements have inflicted intolerable levels of hardships on innocent civilians, disrupting lives, livelihoods, and communities with unrestrained violence.
However, the military incursion, characterised by strategic raids, airstrikes, and well-coordinated operations, has considerably constrained their activities, leaving them on the defensive. The once-emboldened insurgents and bandits, who operated with impunity and plunged the North into chaos, are now feeling the heat gravely and are unable to prolong their reign of terror.
The aggressive push by the military is a welcome development, as it restores hope to the millions of Nigerians who have long yearned for peace and stability in the region. The exacerbating strikes disrupt not just the movement and operations of the criminals but also their supply chains, logistics, and communication networks, weakening their ability to regroup and reorganise.
The triumphs are a proof of the resolve of the Nigerian government and the armed forces to address insecurity directly, boosting the confidence of citizens in their efforts. However, maintaining this momentum is critical. Continued investment in intelligence, technology, and collaboration with local communities will not only solidify the progress made but also guarantee the ultimate eradication of these felons.
Nonetheless, the growing influx of battle-weary outlaws into the South-West region is becoming a cause for concern, as it raises questions about the security and stability of the area. This move by the culprits to establish a base for their illegal activities is seen as a calculated strategy, highlighting the changing tactics of terror groups and banditry networks.
Reports of security operatives apprehending suspected members of these groups during training sessions in Osun State indicate the seriousness of the situation. Such incidents not only suggest a possible increase in violence but also highlight the growing vulnerabilities within the South-West, a region that was once considered relatively shielded from the insecurity affecting other parts of the country.
The arrests in Osun State are just one example of the broader threat facing the area. With terror groups reportedly regrouping in large numbers, the implications for governance, economic development, and societal peace are profound. The porous nature of security infrastructure, the vast terrain, and the availability of soft targets make the region an enticing option for these outlaws to establish a base.
If left unchecked, the attempts of these felons to infiltrate the South-West could potentially lead to a spillover of terror and devastation experienced elsewhere. Therefore, it is vital to bolster intelligence-gathering mechanisms, enhance community-based surveillance, and ensure the rapid deployment of security forces to thwart the machinations of these bad actors before their activities escalate into a full-blown crisis. Proactive measures are needed now more than ever to protect the region from descending into a state of chaos.
Nigeria’s Department of State Services (DSS) has lately increased its efforts to ensure national security by conducting strategic operations in parts of Ijesaland, leading to the arrest of numerous individuals allegedly involved in terrorist activities. Acting on credible intelligence, the DSS carried out preemptive raids across several locations within the state, targeting individuals whose presence and actions posed potential threats to safety.
Among those apprehended were illegal immigrants who failed to present valid residential permits or provide satisfactory explanations for their presence and mission in both the state and the country at large. The operation calls attention to the agency’s commitment to safeguarding national integrity and underscores the extensive issue of porous borders, which have facilitated the convergence of undocumented aliens.
Given these developments, all the governors in the South should act in unison and strategise against the security threats posed by the terrorists to avoid being caught off guard. The South-South and South-East geopolitical zones should establish regional security outfits like their South-West counterpart. This requires cooperation with all other relevant stakeholders, such as socio-cultural groups and non-governmental organisations, that are willing to help in warding off criminals from the Southern part of the country.
On April 11, 2021, South-East governors announced the formation of a new regional security group called ‘Ebube Agu’ after a meeting at the Imo State Government House. This decision came in response to violent attacks on police and correctional facilities. Unfortunately, the initiative was not followed through and has since faded away. The lack of response from the South-South region is depressing. It is important that governors prioritise the security of their respective zones.
As the military ramps up its campaign against terrorists and bandits in the North, the temptation for survivors to flee to relatively peaceful locations, particularly in the South, is real. However, it is the duty of leadership to clearly communicate that they will not find refuge in the forests of states within the three geo-political zones in the South.
We hope that the apprehension of suspected trainee terrorists in Osun State will serve as a stark warning of the dangers that lie ahead. It underlines the need for all Southern states to strengthen their vigilance and preparedness. If rogue elements fleeing from the North wrongly assume that they can regroup and find solace in the South, their plans must be met with strategic defence mechanisms and a united regional response.
Editorial
New Federal Varsity In Ogoni
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President Bola Ahmed Tinubu has made history by signing into law a bill that establishes the Federal Univer-
sity of Environment and Technology in Ogoni, Rivers State. This significant occasion marks a bold step forward not only for the Ogoni people but also for the Niger Delta region and Nigeria as a whole. It signifies a commitment to education, environmental sustainability, and technological advancement.
For the Ogonis, who have long been impacted by environmental challenges, the university represents a beacon of hope. It is more than just bricks and mortar; it is a symbol of empowerment and a pathway to a brighter future. This development is akin to a seed, planted with the promise of a flourishing harvest of skilled professionals.
The university’s emphasis on environmental technology is extremely important, especially given Nigeria’s climate crisis. Education plays a crucial role in developing sustainable solutions. The institution will provide students with the necessary skills and knowledge to address the environmental challenges affecting the Niger Delta region and beyond. This will have a momentous impact.
Signing the bill, the President praised the Ogoni people’s resilience and unity. He stressed that the institution would mark a “significant milestone in our national journey towards environment justice, education and sustainable development”. Tinubu said the university is a reaffirmation of his administration’s “unwavering commitment to the people of Ogoni, the Niger Delta and the nation as a whole. For decades, the Ogoni people have been at the forefront of fight for environmental restoration and sustainable development, shaping both national and global conversation of these critical issues.
“By signing this bill into law, we are taking a decisive step towards addressing historical grievances and creating new opportunities for learning, growth and prosperity. The university will serve as a centre of excellence, equipping young Nigerians with the knowledge and skill to tackle present environmental challenges, drive clean energy solutions and contribute to our national sustainable economic development.”
We commend President Tinubu for his visionary decision to establish the much-needed institution aimed at fostering development and progress. This initiative is a testament to his commitment to addressing critical social and economic knots and creating opportunities that will benefit the people. The President has laid a solid foundation for sustainable growth while demonstrating a genuine desire to empower and advance the nation’s collective interests.
In addition to his commendable action, we applaud Tinubu for initiating peace talks to bring stability and reconciliation to the troubled area. The decision to engage in constructive dialogue demonstrates a deep understanding of the relevance of inclusive governance and the role of peace in fostering meaningful development. For decades, Ogoni has endured turmoil and neglect, impeding its potential and the return of oil exploration activities.
By opening the door to peaceful negotiations, the President has made a bold and necessary move towards healing fractured relationships and fostering trust among stakeholders. This initiative holds the promise of ensuring that the voices and needs of the Ogonis are heard and respected. We urge all parties involved to seize this golden opportunity for lasting peace and progress. It is only through unity and mutual respect that the full potential of Ogoni, and by extension the nation, can be realised.
As steps are taken to acknowledge and remediate the damage caused by years of oil exploration and production, the Ogonis must reciprocate Mr. President’s gesture by fostering a climate of equanimity and stability. This will ultimately pave the way for the resumption of oil exploration and production. This is not a call to forget the past, but a pragmatic recognition that meaningful change and sustainable development require a collaborative approach.
The Federal Government has a responsibility to ensure that all academic disciplines offered by the new university are fully accredited to maintain the integrity and quality of the school. Without proper accreditation, the institution risks producing graduates who are ill-equipped to compete in the global workforce or contribute substantially to national development. Accreditation serves as a benchmark that ensures programmes meet academic standards and adhere to best practices across various fields of study.
Staff recruitment should be conducted carefully, as the individuals brought into a team can greatly influence an organisation’s performance, culture, and long-term success. The primary focus of recruitment efforts at the university should be on attracting the best candidates who possess the necessary skills, qualifications, experience, and values. Merit should be the guiding principle in decision-making throughout the hiring process, rather than favouritism or personal bias.
For a nation to thrive in the 21st century, a strong higher education system is not only desirable, but essential. Universities serve as the catalysts for innovation, the breeding grounds for future leaders, and the foundations of a knowledge-based economy. The Federal Government must acknowledge this vital role and take intentional actions to properly fund the university in Ogoni and develop infrastructure to ensure it meets international standards. Neglecting this responsibility would put its future prosperity and global competitiveness at risk.
This institution must not suffer the same fate as other federally-owned universities that have been left to decay. That will be a disservice to its purpose and potential. Many government-owned universities in the country have struggled with dilapidated infrastructure, underfunding, insufficient staffing, and interruptions caused by industrial actions due to unpaid wages or poor working conditions. These challenges have led to declining standards in education, putting both students and staff at a disadvantage. The Ogoni University must not be another victim of this worrying trend.
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