Editorial

CBN And Nigeria’s Cash Crunch

Published

7 months 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

Hurray, Siminalayi Fubara Is 50!

Published

1 day ago

January 28, 2025

The Tide

Born on January 28, 1975, in Opobo Town, Mr. and Mrs. Joseph and Love Fubara welcomed their second of five children and first son. His father, a former soldier who completed an overseas training tour of duty, instilled in him a strong sense of discipline and dedication. His mother, a civil servant, taught him the importance of hard work and perseverance.
He received his primary education at Opobo Primary School and continued his studies at Comprehensive Secondary School in Opobo. His passion for numbers led him to pursue a degree in Accountancy at the then Rivers State University of Science and Technology, now known as Rivers State University.
Upon completion of his Bachelor’s degree, he pursued further education and obtained a Master of Business Administration (MBA) and a Master of Science (MSc) from the prestigious University of Port Harcourt in 2013 and 2016, respectively. Fubara’s dedication to his studies and his commitment to personal growth have shaped him into the accomplished individual he is today.
Sim, fondly called by his colleagues, started his career in 2003 as a principal accountant at the Rivers State Senior Secondary Schools Board. His dedication led to his promotion to Director of Finance and Accounts at the Government House in 2015. In March 2020, he was appointed Permanent Secretary and then became the Accountant-General of Rivers State on December 23, 2020.
His achievements are numerous, as he is a Knight of the St. Christopher (KSC) Order of the Church of Nigeria Anglican Communion. Additionally, he holds the prestigious traditional chieftaincy title of Amaopusenibo of Opobo Kingdom. The Governor’s commitment to family is evident through his marriage to Valerie Ibiere Fubara, with whom he shares three beautiful children.
Among Siminalayi’s other significant qualifications and accomplishments are his fellowship with the Nigerian Institute of Management and his fellowship with the Association of National Accountants of Nigeria (ANAN). He holds membership in the Chartered Institute of Forensic and Investigative Auditors. His impressive background has gained him the trust and support of the Peoples Democratic Party (PDP), leading to his victory in the party’s governorship primaries for the 2023 general elections.
Fubara embodies a leadership style defined by simplicity and compassion. He exhibits patience, confidence, and empathy in his interactions with those he serves. His humility and faith in God make him trustworthy. Representing the younger generation, Sim leads with the slogan “Consolidating and Continuing the New Rivers Vision,” focusing on developing infrastructure, healthcare, education, security, agriculture, and investment opportunities for Rivers State.
The bravery exhibited by His Excellency in resisting godfatherism has attracted respect from a wide array of Nigerians, Africans, and supporters of democracy around the world. He emphasises serving the interests of the people of Rivers over any godfather. His actions unify diverse groups in the state, promoting a sense of belonging among various ethnicities.
Our affable Governor exemplifies robust moral leadership rooted in his Christian beliefs. As a devoted Knight, he shows compassion and selflessness in his governance. He fosters an environment where all religions can peacefully coexist. Fubara sponsored Muslim pilgrims for the 2024 Hajj and personally wished them well, encouraging them to pray for the state and Nigeria. His religious tolerance has earned him respect among Nigerians who value coexistence.
Moreover, the Governor’s appealing physique and charming smile have garnered admiration from many Nigerians, who view physical beauty as a reflection of inner qualities. His tall stature has solidified his status as a revered figure, commanding respect across the nation. Fubara has shown dedication to women’s issues by initiating several programmes in collaboration with the Women Affairs Ministry and the Office of the First Lady, highlighting his strong commitment to women’s empowerment and gender equality.
Sir Fubara has focused on actively involving young people in his governance by launching entrepreneurship and training schemes, notably the Rivers State Youth Empowerment Scheme. His efforts to support youth have earned him the backing of many young Nigerians. Additionally, he provides scholarships and makes donations to orphanages, demonstrating his commitment to investing in education for the benefit of children in the state.
Known for his strong commitment to national unity, this Governor reaches out to Nigerians from various backgrounds. As a state Governor, he demonstrates great nationalism by supporting citizens from other states, especially in Rivers. He respects the rule of law and democratic values, which has enabled past local government chairmen to complete their terms without issues. His effective management of Rivers State’s resources promotes transparency and accountability.
Despite facing numerous distractions, the Rivers Chief Executive has made remarkable strides in steering the state’s affairs, reflecting his unwavering focus and commitment to delivering results. He has encountered challenges but remains dedicated to his vision for a better state. His peaceful and caring leadership style has made him popular, inspiring new leaders to emulate similar qualities. By being strong yet compassionate, he has redefined the concept of leadership. Fubara’s selfless nature prioritises the state’s needs above his own. This has earned him widespread support.
As he commemorates his Golden Jubilee birthday today, even the most ardent critics, adversaries, and accusers cannot overlook that he embodies a worthy precursor in every sense.
Happy Birthday, His Excellency!

Editorial

Fubara’s 2025 Budget Of Inclusive Growth

Published

2 weeks ago

January 17, 2025

The Tide

On December 30, 2024, Rivers State Governor, Sir Siminalayi Fubara, unveiled an ambitious budget proposal amounting to N1.188 trillion for the year 2025. This proposed budget, aptly termed the “Inclusive Growth and Development Budget,” seeks to address the socio-economic needs of the state while simultaneously fostering sustainable growth and development. This marked the second budget cycle under Governor Fubara’s administration. Fubara signed the budget into law on January 2, 2025, after the House of Assembly had passed it.

The 2025 budget builds upon the framework established by the previous year’s appropriation, which was themed “Renewed Hope, Consolidation, and Continuity.” That 2024 budget projected a total revenue of N800.392 billion, aiming to perpetuate the administration’s agenda focused on economic recovery, infrastructure development, and the enhancement of social welfare programmes. Moreover, it sought to stimulate economic growth, uplift the quality of life for citizens, and facilitate the overall sustainable development of the state.

The 2024 budget was a resounding success, surpassing both its revenue and expenditure targets and achieving its objectives concerning performance, expectation management, and project delivery. Remarkably, this was accomplished in the face of macroeconomic challenges, including prevalent high inflation rates, the devaluation of the naira, and a backdrop of political instability. Notably, this budget was financed without resorting to loans, achieving full implementation with a success rate of 100%. The growth in the Internally Generated Revenue (IGR) was especially impressive; by the end of November 2024, the IGR surged to N282.557 billion, surpassing the projected figure of N231.057 billion by more than N51 billion.

However, the 2025 budget reveals a more refined and methodologically sound financial strategy that places emphasis on both immediate operational needs and forward-thinking long-term investments. The breakdown shows Recurrent Expenditure totalling N462,254,153,418.98 alongside a Capital Expenditure of N678,088,433,692.03. Additionally, the budget establishes a planning reserve of N35.688 billion and anticipates a closing balance of N12.931 billion. In this way, Fubara’s administration reaffirms its unyielding commitment to expedite the development of Rivers State.

An important element of this budget is the ratio of Recurrent to Capital Expenditure, which stands at a notable 44:56%. This metric illustrates the administration’s deliberate allocation of funds, directing a substantial portion towards capital projects — vital components for fostering infrastructure and facilitating developmental goals. This balanced approach indicates a strong recognition of the need for investment in both immediate operational efficiency and sustainable long-term growth strategies.

Considering the contemporary economic complexities and pressing policy priorities, the 2025 appropriation estimate is a carefully calculated reflection of the state’s economic landscape. The budget’s stable assumptions and its intrinsic flexibility are designed to address the various financial challenges the state faces, thereby ensuring its ongoing relevance to current and future economic scenarios. These elements demonstrate a realistic and reliable approach in the projections of the N1.188 trillion budget, thereby enhancing the effectiveness of its implementation.

The estimate further acknowledges the complicated dynamics of the current economic climate and adjusts strategic plans to navigate unforeseen disturbances. By incorporating a degree of flexibility, the budget is designed to anticipate and mitigate potential economic shocks stemming from an array of domestic and international influences. This proactive posture enables the state to respond efficiently to economic downturns and explore avenues for growth.

In the allocation of funding, Governor Fubara emphasizes critical sectors such as infrastructure, health, education, agriculture, and social development, showcasing an understanding of the core challenges faced by Rivers State. The largest portion of the budget, amounting to N195.074 billion, has been specifically earmarked for infrastructure development, followed closely by allocations for health (N97.750 billion), education (N63.275 billion), agriculture (N30.954 billion), and social development (N15.477 billion).

The government’s commitment to infrastructure development is particularly commendable. Key projects such as the Port Harcourt Ring Road and the Trans-Kalabari Road remain essential drivers for economic expansion. The allocation dedicated to social development is a commendable move towards empowering the youth population. Investments in youth initiatives are integral for laying the groundwork for a more inclusive and equitable society.

Recognising that food security is a non-negotiable priority, the administration’s substantial commitment to the agricultural sector deserves praise. By supporting interventions aimed at agricultural development, the government is creating employment opportunities, fostering economic growth, and achieving necessary diversification and rural development. Moreover, the initiative to roll out a comprehensive agriculture transformation support programme geared towards youth in the upcoming fiscal year stands to tackle the challenges of youth unemployment, poverty, and food insecurity effectively.

In parallel, the budget emphasizes the administration’s intent to fortify health and educational institutions. It is paramount that primary healthcare systems and general hospitals receive the necessary investments to drive transformative outcomes, alongside substantial renovations of public schools. The government must remain focused on bolstering foundational sectors within the education system. Furthermore, the planned establishment of a college of education in Opobo is a welcome initiative that aligns perfectly with the need to enhance educational opportunities in the area.

In recognition of these concerted efforts, the Opposition Coalition, alongside the All Progressive Congress (APP) and the Human Rights Writers Association of Nigeria (HURIWA), has lauded Governor Fubara as an astute economic tactician whose leadership has seen Rivers State’s IGR increase by N100 billion. They further commended his administration for achieving the 2024 budget’s objectives without incurring debt, despite the ongoing attempts by various disgruntled elements to disrupt governance in the state.

A statement from the opposition emphasized, “This remarkable achievement is a testament to the economic acumen of Governor Fubara, who, despite distractions and provocations, has maintained his focus on the economic rejuvenation of the state following years of mismanagement. It is both reassuring and inspiring that even while the Federal Government grapples with domestic and foreign borrowings to fund its operations, the Rivers State Government has succeeded in financing the 2024 budget without resorting to borrowing.”

Governor Fubara’s pragmatic approach to fiscal management presents a remarkable opportunity to transform governance at the state level in Nigeria. If effectively executed, the 2025 budget could serve as a model for leveraging state governance to propel economic growth and enhance the quality of life for Rivers people. The successful implementation of the budget could redefine the role of state governments in Nigeria’s overall development trajectory, thereby paving the way for a more prosperous and inclusive future for all.

Editorial

Opobo And The Proposed Higher Institution

Published

2 weeks ago

January 15, 2025

The Tide

Rivers State Governor, Sir Siminalayi Fubara, has recently taken an important step by unveiling plans to establish a new institution of higher learning in the historic Opobo Town. This forward-thinking initiative is designed not only to enhance educational opportunities but also to stimulate sustainable academic and economic growth in the region, thereby addressing some of the long-standing needs of the community.

The Governor made this important announcement during the inauguration ceremony for the 7-kilometre Opobo Town Ring Road, which stands as a testament to the government’s unwavering commitment to infrastructure development within the state. The proposed institution will serve as a vital educational resource, providing local students from Opobo and its surrounding areas with access to quality education. This initiative seeks to empower learners with the skills and knowledge necessary to actively contribute to economic prosperity and community development.

Additionally, the new institution is envisioned as a hub for research and innovation. It aims to promote sustainable practices and develop solutions tailored to the specific challenges faced by the local community. By investing in education, the government acknowledges the transformative power of learning as a crucial component in shaping the future of Rivers State and empowering its citizens.

The announcement has sparked a wave of enthusiasm among the native and resident population of Opobo Town, who eagerly anticipate the realisation of this promise to establish a higher educational institution in their community. This momentous development brings a renewed sense of hope and relief to a town that has historically been deprived of access to quality tertiary education.

For many years, the youths of Opobo have faced the daunting challenge of leaving their hometown to pursue higher education elsewhere. The emotional strain and financial burdens associated with this necessity have proven overwhelming for numerous families. However, the establishment of this institution is poised to transform the landscape of educational opportunities, allowing countless individuals — sons and daughters of this ancient kingdom — to attain affordable and accessible education right within their own community.

The gratitude expressed by the natives and residents of Opobo is truly palpable, with many extending heartfelt appreciation to the Governor for his steadfast dedication to fulfilling their educational aspirations. This strategic investment not only aims to empower the local population but also seeks to invigorate the economy through job creation and increased civic engagement.

The Tide commends the Governor for his initiative to establish a world-class educational institution in this historic town. Education is not merely a means of acquiring knowledge; it serves as the cornerstone of societal advancement. By equipping individuals with critical skills and the tools necessary for navigating the complexities of modern life, this initiative will undoubtedly foster a more informed and engaged citizenry. Furthermore, it would be prudent for the Governor to consider replicating such initiatives in other deserving riverine communities, extending the benefits of higher education throughout the region.

Looking ahead, it is imperative that the Rivers State Government ensures that this higher institution is adequately funded and supported. Prioritising the development of students, staff, and curriculum, as well as providing state-of-the-art research facilities, will be essential in guaranteeing that the institution meets international quality standards.

It is noteworthy to mention that, apart from a previous attempt to locate the Faculty of Law at what was then known as the Rivers State University of Science and Technology (UNITECH) in Degema during the administration of the late Chief Melford Okilo, the proposed higher education institution at Opobo marks the second concerted effort by a Governor of Rivers State to enhance academic opportunities in the area.

Governor Fubara’s initiative has effectively dispelled the notion that the riverine areas of the state are unsuitable for accommodating momentous projects due to land scarcity. His administration sets a precedent for future leaders, encouraging them to view riverine areas as viable and valuable locations for launching economic projects.

Undoubtedly, this transformative project will not only enhance the potential for human settlement in that portion of the state but also mitigate the ongoing trend of rural-urban migration. This higher learning institution will draw industrialisation and provide vital job opportunities, serving as a symbol of hope for the many unemployed young individuals in the area while unlocking fresh prospects for growth and advancement.