By Fr. Evaristus Bassey
I remember how in 1984, there was so much pressure on Muhammadu Buhari to devalue the naira, and how he stuck to his guns. Perhaps if we had continued with the policies of the era, we would have by now become a manufacturing nation, because we would have been forced to diversify our economy in order to defend the naira.
I dread what would have happened if Jonathan were still in the saddle and we had these orchestrated pressures on the naira. With such eloquent and influential speakers as the Emir of Kano campaigning for devaluation, towing the line of a host of financial products dealers, the Central Bank would have devalued the naira to 350 per dollar. So it is good that the man who is now in the saddle is a stubborn person who doesn’t have to budge even when those experts are churning out economic theories that would only mean more hardships for ordinary Nigerians. Perhaps, the campaign should rather be for all those countries we import from: UK, China, UAE(Dubai), USA, to devalue their currencies so that we could make more purchases since Nigerians love foreign products.
The problem, however, is that Nigerians would not wait for government to devalue the currency; they just do it. Banks charge nearly the parallel market rate when you use your ATM abroad; they get official dollars from the Central Bank and yet devalue the naira when you spend abroad. Not to talk of manufacturers. Even when they manage to get foreign exchange at the official rate, you could be sure that they would factor in the parallel market rate as cost of business. The most annoying used to be foreign consular offices. They would make up their own rate far above the official rate when they are charging for their visas, and Nigerians, because we see these foreign nations as preparatory heavens, a man is ready to sell his whole property to move abroad and start an uncertain life.
Most things have gone up, even those not directly connected with the dollar. There was a protest recently in Benin, Edo State, on the 100% increase in the price of pure water. The prices of yam, plantain, garri, have all gone up. Of course, it is expected that the ones connected with the dollar would increase astronomically, with the penchant of Nigerians exploiting every situation to maximum advantage and transferring the costs to the consumer. Car dealerships are poised to rip Nigerians off, as they get vehicles at official value rate and sell at parallel market dollar value. The resilience of Nigerians is such that whereas in other countries, spontaneous and sometimes violent protests would erupt at the slightest increase in price of essential commodities, Nigerians would complain, adjust, and simply move on. There can be no revolution in Nigeria.
It is disheartening how deposit money banks would flagrantly discard the official rates and deduct near parallel market rates from travelers. Perhaps, they try to outsmart Nigerians who would think that they could travel abroad and withdraw foreign currency and come back and exchange at the parallel markets for more naira. I can understand where an entity sources its forex outside CBN and patronizes the parallel market. It is killing to the naira that a bank that gets its forex from the CBN would turn around and round trip, or as it is being alleged, even manufacturers who get funds through “Form M” eventually find ways of round tripping because it is more profitable in the short term rather than wait for the value chain of the investment to materialize.
It is quite tempting even for a saint. The CBN Governor, Mr Godwin Emefiele has been doing all in his capacity to defend the naira. The ultimate effect should be that for things we have the raw materials and the market here in Nigeria, as Reuben Abati has suggested, pressure should be mounted on the manufacturers of those products to open factories here in Nigeria. This should be an objective of President Buhari’s trips. Manufacturing shouldn’t simply be a case of importing completely knocked down parts (CKDs) which are then assembled. As Nigerians, we should change our attitudes towards travel within. Many Nigerians, know more European and American cities than they know other parts of Nigeria. How many Nigerians have taken time out to visit the Yankari Game Reserve or the Mambilla Plateau ? Or the Obudu Cattle Ranch? Or the Oban Natural Pool? At the slightest opportunity, a well to do Nigerian jets out and enriches the economies of Europe and America, sometimes with a dose of insult. It should not remain a matter of banning the sale of forex on certain items, or simply asking Nigerian to change their tastes overnight. Apart from Standards Organization of Nigeria becoming more effective, government at all levels should improve infrastructure. The roads that lead to tourism sites should be pot-hole free. No one wants to get sick while trying to make one’s way to a place of rest and pleasure.
Going back to the issue of forex, I think CBN should team up with the leadership of the Bureau de Change and facilitate access to forex from oil companies and foreign financial products investors. CBN could then work with the National Assembly to amend the EFCC Act to reflect the fact that it should be an economic crime to sell forex got from CBN beyond a certain percentage point. I personally believe the naira is undervalued. Whereas one could get a plate of food from mama put at 200 naira, I don’t know of anywhere in Europe or America I could get a plate of food at one dollar or euro. The naira needs our love and protection.
. Fr. Bassey works at the Catholic Secretariat of Nigeria
Why the naira needs our protection
