Daily Independent Online.
*
Friday, June 11, 2004.
Can Soludo rediscover the Naira?
If in a position to serve Nigeria in any
official appointment, there are three prime jobs, which I would never accept,
no matter their quid
pro quo. These
positions are the Chief Coach/Technical Adviser of the national team, the Super
Eagles, the other is the Managing Director of Nigeria's foremost money-guzzling
project, the National Electric Power Authority (NEPA) and of course, the
biggest of them all, that of the Governor of the Central Bank of Nigeria,
(CBN). My reason is simple, and that is, no matter how pukka your performance
in any of these national assignments, you can never get the satisfaction of
anybody. As far as these jobs are concerned, therefore, anyone at the helm of
their affairs is usually a recluse. Frankly speaking, save for the loss of
dignity and sovereignty, Nigerians would have long time ago called for the
appointment of foreigners to occupy the eminent positions of the Governor of
CBN and that of the Chief Executive of NEPA, as is being done with the Super
Eagles job.
The above scenario, notwithstanding, I would wish to
join millions of Nigerians, particularly those wishing him well, to extend
hearty felicitations to Prof. Charles Soludo, whose appointment as Governor of
the Central Bank of Nigeria (CBN) recently got the approval of President
Obasanjo. I wish him a successful tenure of office and Divine wisdom to enable
him to steer the ship of the apex bank efficiently with a view to achieving
prosperity for our battered economy.
Many economic watchers have suggested several agenda
for Soludo as he takes over the mantle from Chief J. O. Sanusi. To my mind,
however, the only agendum the new Governor should pursue, as plan of action, is
the urgent need to salvage the Naira out of the thick forest. The challenge
posed by his appointment is enormous considering the valueless rate of the
Naira vis-a-vis other foreign currencies particularly the US dollar, which at a
time was lower in exchange rate than the Naira, and the British Pound. The
strength of the Naira nose-dived to the lowest ebb when the Babangida regime
introduced the Second Tier Foreign Exchange Market (SFEM) under the dreaded and
widely publicised Structural Adjustment Programme (SAP).
It is the state of the Naira that makes some
critiques to oppose the planned introduction of the N1000 bill by the CBN more
so when the denominations currently in circulation have lost their value just
as their purchasing power has been eroded due to persistent devaluation. It is
sad to recall that Nigeria's N5 was once worth about US$7.50, but today, the
reverse is the case as the present N500, which is the highest of the
denominations, is worth less than the old N5 bill. Where then lies the strength
of our dear currency?
With the return to civil rule, May 29, 1999,
Nigerians had thought that the Obasanjo-led government would face the issue
squarely by restoring the power of the Naira through pragmatic monetary
policies, but alas, the government seemed to also fall in love with the
comatose state of the Naira, with dire consequences for the national economy.
As it is, it appears the Naira is dying since resuscitating it has defied all
credible economic solutions including the introduction of the Dutch Auction
System (DAS).
As usual, the common man has been the one carrying
the burden of the collapsing currency. Before May 1999, a bag of rice was
purchased for about Nl,200; the same bag now sells for between N4,500 and
N5,000. Prices of other essential commodities such as beans, yam, plantain,
meat, fish, garri, etc are not exempted, thereby making the poor to always
prostrate when buying food items. It is also due to the complete erosion and
heavy depreciation of the Naira value that is making the people of the oil rich
Niger Delta see the financial contributions of the oil companies operating in
the area as nothing; and this is also the single reason why both hosts and
visitors see one another as a fiend rather than a friend.
Gab
Oyovota,
Lagos
