Opinion
Cautious Optimism As Naira Rebounds

It has been good news since the past three weeks as our national currency, the Naira, continues to regain its lost value. The recovery follows frantic efforts by a government whose ill-advised, inaugural policies had set the legal tender, and the whole economy, tumbling.
The naira took an unprecedented plunge from last June and hit bottoms by the middle of March, 2024, following a hasty decision by President Ahmed Tinubu’s administration, to let it float freely on the market forces of demand and supply, in addition to removing petroleum subsidy, in disregard of the handicap of Nigeria’s import-dependence.
Without provisions to boost productions that satisfy domestic demands, or prime export capacities to balance import pressures on the local currency, a floating naira depreciated by 25 per cent in a single day in June, 2023, dropping to N1,950 per dollar in March, 2024, from about N750 per dollar earlier in May, 2023, while the price of petrol jumped overnight to 295 per cent, from N189 to N557. By December, 2023 overall inflation, according to official estimates, reached 28.92 per cent and food inflation shot beyond 33.33 per cent.
According to a World Bank report, whereas about 24 million Nigerians crossed the poverty line during the first half of 2023, in the twilight of the Buhari administration, situations got worse by the end of 2023, when accelerating inflations ushered-in by Tinubu’s hasty policies, pushed 63 per cent of Nigerians (about 133 million) into multi-dimensional poverty.
By the first quarter of 2024 hardships drove restive youths to near-uprising, which forced government into another haste – a concoction of palliatives – ironically, a form of subsidy, which it had earlier denounced as government wastefulness.
With the naira regaining its losses, it appears a panicky government has finally groped unto a solution. But if Mr President’s men are remorseful for the havoc done to Nigerians, they should be more sober this time in their computations to avoid distressing the country further.
The Federal Government has resorted to offloading dollar raised from sovereign bonds (in essence, loans), petroleum export proceeds and drawdowns from the external reserves, into the economy to reduce Foreign Exchange (FX) supply pressures, and to help it buy time in the hope of finding solutions to the wider unfavourable economic fundamentals bedevilling the economy.
On the dollar demand side, government has freed-up official restrictions that it believes created artificial scarcities that favour the black market. The Central Bank of Nigeria (CBN) has also cleared-off a backlog of FX obligations to assure investors, lifted the ban on sale of dollar to Bureau De Change Operators (BDCs), clamped down on currency speculators, closed down Binance, a crypto platform government accused of opaque dealings with money launderers, and borrowed dollar through short-term, sovereign bonds to ‘defend’ the naira.
Ever since, the CBN has offloaded dollar to BDCs at progressively reduced rates in the hope of prompting currency hoarders to cut losses and release supposed stockpiles. But in a clime where looted funds are desperately exchanged and exported, not much may be squeezed from hoarders, if surveillance is not stepped up. However, as at April 8, 2024, the CBN has offloaded a second tranche of $10,000 per BDC operator at N1,101 per dollar with a charge not to sell above 1.5 per cent margin. Many predict the CBN would offer the dollar below N1,000 in the coming weeks.
But for how long can the CBN go on with its bonanza to ‘defend the Naira’? And what has been the cost of that defence? While the impact of strengthening naira is yet to reflect on commodity prices in Nigeria, the nation’s foreign reserve has dropped within 18 days by $0.95billion, down from $34.45billion on March 18, 2024, to N33.50billion on April 3, which represents a daily average depletion rate of $52.78 million. This is despite the $3billion loan from the AFREXIMBANK and petro-dollar revenues also thrown into the fray. To sustain its strengths, reports say the federal government plans to take stabilisation loans by June, 2024, speculated at a tune of $15billion, through the issuance of domestic bonds denominated in foreign currency. FG seeks the loans within the window of short-term, volatile Foreign Portfolio Investment (FPI) bonds which may disappoint the country in times of crises, as against Foreign Direct Investments which are more reliable. According to Bloomberg reports, FG has contacted investment banks, JPMorgan Chase & Co, Goldman Sachs and Citibank NA, for advice on Eurobonds, but Nigeria’s Debt Management Office denies Federal Executive Council’s approvals for such.
Certainly, a stronger currency is beneficial to an import-dependent nation like Nigeria, but without strengthening national productivity to generate surpluses for trade-balancing exports, the pursuit of merely high currency valuation becomes a vain strategy. While the naira strengthens, the reality of the adverse economic fundamentals that erode its worth remain unchanged, implying that its buoyancy rides merely on costly FX floods being pumped by the CBN. It is easy to guess the result, should the CBN halt supply.
For years Nigeria relied on its petroleum sector which at present provides about 78 per cent of FX earnings, but constitutes far less than 10 per cent of its real Gross Domestic Product (GDP), implying that to stabilise, Nigeria needs to grow its non-oil sector of over 90 per cent of GDP. Even the petroleum revenue is endangered by sabotage, illegal bunkering, dwindling investments and insecurity.
The FG may have taken the bet that sustaining the naira could buy it time from hard-pressed Nigerians, in the hope that a number of tangible local productions might kick-off. Notable among the expectations is the Dangote Refinery which, with its 650,000 barrels per day refining capacity, is expected to satisfy local demands of petroleum products to ease the huge FX demand in that front, and may hopefully earn FX through exports. Already, Dangote’s recent release of 100 million litres of diesel crashed the price of the product from N1,700 to N1,350, with another batch of 100 million litres expected to crash prices further, while the company plans to supply petrol by next month, but government-owned refineries which have drained so much resources remain dysfunctional. Again, the recent break through against reprocity flight barriers between the UK and Nigeria by Airpeace, reportedly crashed ticket prices to UK by 60 per cent.
FG may also see reliefs in the successful take-off in Aba, of 24-hour power supply by the Geometric Group and the recent commissioning of 700 Megawatt Zungeru hydro-electricity station, a tomatoe processing plant in Nassarawa, and a steel mill in Kaduna. However, agricultural, petroleum and manufacturing sectors remain at their lowest and beseiged by insecurity, while the financial services sector appears to be strong but has incommensurate impact on industrialisation. If government does not encourage productivity in the real economy, its efforts in buoying the naira would be hopeless, while Nigeria falls deeper in debts. Already, as at December 31, 2023, Nigeria’s total debt stood at $106billion, while the 2024 budget of N28.7 trillion projects a deficit of N9.8 trillion to be debt-financed.
When public debt grows fast ahead of GDP growth rate, mounting debt service costs under-cut funds required for investment. That became the plight of Nigeria from Buhari’s era, when from 2016 to 2022 public debt grew by yearly average of 52.4 per cent, and GDP below 2 per cent. In that fateful 2022, debt service cost exceeded government revenue, which is why we are where we are.
The International Monetary Fund projects that Nigeria’s reserve would plummet to $24billion by end of 2024. Meanwhile, a nation’s FX reserve reflects the country’s balance of payments and its ability to settle international obligations. Severe declines in reserve may erode investor confidence and lead to downgrading of its credit ratings, which further worsens the nation’s borrowing costs.
Therefore the current approach towards buoying the Naira through loans can not be any other thing, but a gamble.
By: Joseph Nwankwo
Opinion
Addressing Nigeria’s Social Ills Through Cultural Education
One of the critical problems confronting Nigeria today is the lack of recognition and appreciation of our tangible heritage, values, and norms – elements that are crucial for fostering social cohesion and responsibility. These values, which are inherently adaptive, can only be transmitted effectively through cultural education.Nigerian food Cultural education involves socialising individuals into the norms, values, and heritage of a given society through mediums such as folktales. Its primary intent is to nurture socially responsible and morally upright individuals who contribute positively to their community. In essence, cultural education is a learned behavioral pattern shared and transmitted from one generation to another. It encompasses customs, traditions, beliefs, arts, and philosophies of life. As Babs Fafunwa (1994) observed, every society, regardless of its size, has its unique ways of transmitting its cultural heritage.
Cultural education plays a vital role in shaping a child’s character and physical skills. Cultural education also has unique ways of instilling respect for elders and authority in the child. In addition, cultural education helps in developing intellectual abilities, fostering a sense of belonging, and promoting active participation in family and community affairs. This concept also cultivates a healthy attitude towards honest labour while it also helps to preserve the community’s cultural heritage. However, since Nigeria’s independence in 1960, the infiltration of foreign cultures, technological advancements, religious beliefs, and political systems have significantly helped in the erosion of the country’s social fabric. Today, Nigeria grapples with the loss of cultural values in more ways than one. The country also grapples with moral laxity among youths, violence, delinquent behaviours as well as the disruption of traditional political systems.
Beyond these, lack of cultural education has also triggered a decline in political will among the country’s citizenry. Thus, social issues such as sex abuse, prostitution, drug trafficking, kidnapping for ransom, internet fraud (which are more commonly known as 419); cybercrime, militancy, armed robbery, and examination malpractice have become rampant. However, these challenges can be mitigated through the promotion and sustenance of cultural education in Nigeria. Bringing cultural education forward in the country’s socio-political and economic systems would go a long way in redirecting the citizenry from the identified social ills. For instance, cultural socialization teaches children the proper ways to greet elders and interact respectfully. Observing parents during ceremonies are also a way to achieving this. Ceremonies such as weddings, child-naming, or funerals help children learn appropriate behaviour at such and sundry ceremonies, and decorum. Unfortunately, many youths today lack respect for elders and are antagonistic to cultural values. Instead, they are influenced by foreign films, contents and literature which often glorify disrespect to our culture; violence and weapon use. As a result, some have become political thugs, religious extremists or armed robbers. They now pose a severe threat to Nigeria’s national survival.
Furthermore, exposure to undesirable foreign cultures has led to extensive moral degradation which manifest in ways such as drug abuse, prostitution, theft, and internet fraud. Dressing among Nigerian youths is another concern. Many young people disregard their cultural heritage and show utmost disdain for their geographical environment. For example, some young women wear clothing that leaves vital parts of their bodies exposed, while young men adopt unkempt appearances, including sagging their trousers and leaving their shirts unbuttoned. There are also instances of unfastened shoelaces. These issues can be addressed through family-based cultural socialisation, where parents play a critical role in imparting cultural education. It is therefore recommended that, to address these social ills, the following measures are suggested. The first is that there should be ways to incorporate cultural education into the curriculum of our schools. Nigeria’s education system should be reviewed to emphasise cultural education, including the use of indigenous languages for instruction. Cultural elements such as morality, taboos, mores, and folktales should be promoted to shape human behaviour positively.
Another suggestion is that we should indigenise the Nigerian political systems. The political system should incorporate cultural principles and practices specific to Nigeria’s diverse cultural environments. This will encourage greater participation and accountability among political leaders. Thirdly, we must promote local content in media. A ban should be placed on the excessive use of foreign entertainment packages in media houses and on social media. Instead, Nigerian cultural content should be prioritised and promoted to reinforce cultural identity. Also, we must strengthen parental socialisation. Through this, families must embrace parental socialisation as a key method for imparting cultural education. Parents should model cultural values and behaviours to guide their children effectively. Cultural education is very essential for curbing social ills in Nigeria. By integrating it into our education system, political practices and media content, we can foster a society rooted in strong moral values and cultural heritage, thereby ensuring a strong and brighter future for generations to come.
Modupe is Chief Museum Education Officer, National Commission for Museums & Monuments, Osogbo, Osun State.
Veronica Adewole
Opinion
Promoting Citizens’ Power In Democracy
2027 is sealed for Mr. President. When I say 18 over 18, it means we are going to deliver our 18 local governments to Mr. President.”
Reading the above statement by the governor of Edo State, Mr. Monday Okpebholo, one wonders what the future holds for Nigeria’s democracy. In any true democracy, the power to elect leaders rests solely in the hands of the people. This principle is the foundation of democracy, ensuring that governance is based on the will of the majority rather than the rule of a single individual or a privileged few. Unfortunately, in Nigeria political elites and influential figures attempt to manipulate the electoral process, undermining the will of the citizens. We often hear governors and some other politicians talking tough, boasting of how they would sweep all votes in an election. This practice not only weakens democracy but also fosters corruption, inefficiency, and a disconnect between leadership and the people’s actual needs.
Such statements suggest a predetermined outcome of an election rather than a free and fair electoral process. And in a democratic society such as our, this has several implications. Firstly, there is a threat to free and fair elections. Democracy thrives on competitive, transparent, and credible elections where citizens freely choose their leaders. The claim that all votes will go to one candidate suggests electoral manipulation, coercion, or suppression of opposition. Secondly, it portrays a disregard for voter choice. It is said that in a democracy, the electorates are the kings because they are supposed to have the power to determine who sits on any political seat. But when a governor claims that the votes to be cast in his state in the next two years are already meant for a particular candidate, it suggests that the election result is already determined, it makes voters feel powerless and discouraged to participate in politics.
Statements and actions like Okpobholo’s erode political pluralism. Democracy requires multiple parties competing fairly. Declaring total victory before an election dismisses the role of opposition parties and reduces political competition to a mere formality. The statement also raises concerns about potential election rigging, vote-buying, or manipulation of electoral institutions to favor one candidate, which damages public trust in the democratic system. If there are no plans to commit these electoral offences, how possible is it that all the numerous opposition parties, including the Peoples Democratic Party (PDP) which just handed over power to the ruling party in Edo State will not win even a single local government area?
This idea of a government in power winning elections at all cost and making elections in Nigeria less competitive and predetermined outcomes is the reason institutions like the Independent National Electoral Commission (INEC), judiciary, and security agencies are seen as compromised.
This, no doubt, weakens our democracy. Another implication of Okpobholo’s rhetoric is that it can provoke political unrest, resistance from opposition parties, and loss of faith in democratic processes, leading to increased instability and potential conflicts. Nigeria is already soaked with too much political and economic tensions and cannot afford to have more due to the selfish interest of a few individuals. Another troubling trend is the growing influence of governors, party leaders, and other politicians in handpicking candidates for elections. Instead of allowing a free and fair process where citizens decide, these power brokers often impose their preferred candidates, who may not necessarily represent the interests of the people. Such interference leads to a leadership that is accountable not to the electorate but to the few individuals who orchestrated their rise to power.
Have we not seen enough of this in display where elected lawmakers both on the federal and state levels would choose to do the biddings of their masters in the executive arm of government over the interest of Nigerians who elected them? Former President, Olusegun Obasanjo while speaking on the failure of democracy in Africa recently aptly defined what we currently have in Nigeria thus, “Today we have democracy which is government of the people, of a small number of people, by a small number of people over a large number of people who are deprived of what they need to have in life.” Some people have come heavily on the former president and the former governor of Anambra State, Peter Obi who shared the same sentiment for daring to criticize the present-day practice of democracy in Nigeria when in their days in offices some of their actions accountable and effective leadership.
Additionally, the legal framework governing elections should be strengthened to ensure transparency. INEC and the states’ electoral umpire free from political interference, must oversee the entire process, guaranteeing that every vote counts and that the people’s choices are respected. Political parties should also be mandated to conduct primaries that genuinely reflect the will of their members, rather than serving as a mere formality for predetermined outcomes.Our elected leaders across board should be advised to face governance and deliver the dividends of democracy to Nigerians who put them in office instead of politicking all the time. It is about two years to the next general elections and the major preoccupation of the leaders seems to be plans and scheming of how to come back in office in 2027 instead of dealing with economic, insecurity, unemployment and other challenges facing the country. How can Nigeria move forward like that?
Calista Ezeaku
Opinion
Making Wise Decisions Amid Pressure
Look before you leap”, is one of the wise sayings that over the years I have been emotionally attached to. It means so much to me because the debilitating consequences of unguided actions are better imagined than experienced. “Look before you Leap” teaches me to be thoughtful, articulate, discreet dispassionate and solicit for advice of the experienced and reasonable people where necessary. I have seen people reveal their stark ignorance because they took decisions rashly and without considering the implications of their actions or inactions, only to say, “had I known” which is an euphemism for failure. It has therefore, become necessary to “look before you leap”. Rehoboam, son of Bible’s King Solomon lost 10 of a 12-tribe kingdom of lsrael to Jeroboam. The negative consequences of lack of conscientious and enlightened guide before taking action has landed many to avoidable regrets.
Thoughtless actions happen every day and they are evidenced in the unpleasant outcomes of such decision. In 2024, a Federal High Court, Abuja sacked 20 Cross River State House of Assembly members which serves as an object lesson for thoughtless Lawmakers’ and elected representatives who want to defect from the party on whose platform they were elected to a preferred political party, whether the choice was based on sound judgement, ignorance or pecuniary gains. The Electoral Act is unambiguous and crystal clear so does not make judicial interpretation necessary, on the ground for an elected representative to leave his or her political party for a preferred one either by inducement, anticipated pecuniary benefits or blind loyalty.And the sublime reason must be premised on irreconcilable crisis in the political party of those elected who want to decamp or cross-carpet
Recall that on Monday March 18, 2024 a Federal High Court in Abuja sacked 20 members of the Cross River State House of Assembly. The Peoples Democratic Party (PDP) had instituted a suit against the lawmakers over their defection to the All Progressives Congress (APC). Ruling on the case marked “FHC/ABJ/CS/975/2021 , Taiwo Taiwo, the presiding judge, held that the lawmakers should vacate their seats, having abandoned the political party that sponsored them to power. The affected lawmakers are: Michael Etaba, Legor Idagbor, Eteng Jonah William, Joseph A. Bassey, Odey Peter Agbe, Okon E. Ephraim, Regina L. Anyogo, Matthew S. Olory, Ekpo Ekpo Bassey, Ogbor Ogbor Udop and Ekpe Charles Okon.Others are Hillary Ekpang Bisong, Francis B. Asuquo, Elvert Ayambem, Davis Etta, Sunday U. Achunekan, Cynthia Nkasi, Edward Ajang, Chris Nja-Mbu Ogar and Maria Akwaji.
The Independent National Electoral Commission (INEC), Speaker of the House of Representatives, National Assembly, Clerk of the National Assembly, Cross River State House of Assembly, Clerk of the Cross River State House of Assembly and the All Progressives Congress, were also joined as defendants in the suit. Though, in their defence, the lawmakers argued that there was rancour in the Peoples Democratic Party (PDP),which led to their expulsion from the party, the judge held that the defendants had intentions to mislead the court. He said he found gaps and loopholes in their defence as they tried to twist events to suit their own narratives.”They wined and dined under the umbrella of the plaintiff who also gave them shelter,” he said Taiwo noted that they not only defected loudly, “they took pictures of their defection and were received by the officials of the 26th defendant”.
“There is no doubt that the defendants can belong to or join any political association and assembly as they are free to do so,” he ruled. “I consider the attempts of the 6th – 25th defendants to justify their defection feeble in the circumstances of this case.” Taiwo said the public voted for the lawmakers through the plaintiff who sponsored them and they were not elected as independent candidates.”They had a vehicle which conveyed them and that vehicle belongs to the plaintiff. They cannot abandon the vehicle,” he held. Justice Taiwo’s judgment and several other judgments on thoughtless defections should have been a basis, landmark and precedent to determine whether the 27 Rivers State House of Assembly members elected on the platform of the Peoples Democratic Party (PDP), have the locus to publicly decamp to the All Progressives Congress (APC) and still retain their seats in the House as elected and honourable members of the House as declared by the Supreme Court in its Judgment on consolidated suits on the political crisis in Rivers State.
The judgment of the “learned” justices of the Supreme Court on the 27 defectors is a bitter pill to swallow. It is however, not a surprise because the aroma of the fart tells the substance of the poo. The wise man learns from the experiences of others and history. History repeats itself because people have refused to come to understanding. They are close-ended in learning. The essence of history is to avoid a reinvent of the negative past, use the ugly past to reconstruct the future. Legislators are elected to represent constituency consisting of people of all walks of life. They should rather strive to serve the people, solicit the consent of popular opinions on critical issues rather than serving their selfish interests. Those elected should see themselves as stewards and as stewards they are accountable to the people and God, not their political godfather.
It is high time our political leaders knew that the legitimacy of their positions is derived from the magnanimity of the people. They should therefore not take decisions without taking into cognisance the interest of the people they are representing, through intentional consultation.
By: Igbiki Benibo