We would like to appeal to the government to urgently put the correct structure and policy in place to ensure the stabilisation of the economy and the Naira. This may include organising a national economic stabilisation conference
OPEN LETTER TO NIGERIA AND NIGERIANS
By Nigerians in Diaspora
London, February 19, 2016 – What macroeconomic steps should the Nigeria government take to control the economy and the Naira slide?
A Nigeria problem certainly requires a Nigerian solution!
As Jide Ijaniwura, a UK based entrepreneur said “Most small businesses dealing with Nigeria and expecting payments may not survive this. The loss may be too much for most to bear”.
This can be related to some companies, including media outfits where payment for their services are being hindered, thus creating unfavourable conditions for their businesses to survive.
In the words of Dr. Nicholas Okoye, a financial expert, who noted that the challenges are deep and therefore called on the Government to act NOW to support local businesses and SME’s recapture opportunities to make ‘buy made in Nigeria’ products not just a thought but a reality.
“We are minded to say a few things about the various comments on the Nigerian economy and its management. On the economy, we are not aware that the President is either the “de facto or de jure” manager or in the economic management team even though the buck stops on his table and success or failure are his. The value of the Naira affects mostly the elite and not the vast population who eke out a living on a dollar a day.
Yes, it affects the cost of imported goods but if the rate of foreign exchange is the major factor of measuring economic success, the Chinese Yuan Renminbi was artificially low against US$ for so long that successive USA governments have usually complained against it. Things were worse in China in the late nineties and early 2000s while the economy was being re-engineered and we saw first-hand the pain.
Rebuilding a moribund economy is like piloting an hovercraft which for those who don’t know is more difficult than most transportation vessels. You have a corrupted system with most previous government investment focus on Oil & Gas, Telecoms and Finance, some focus on Agriculture, indifference to Education, minimal interest in Manufacturing, indifference to Solid Minerals etc, yet in 9 months this administration is supposed to suddenly turn around the juggernaut and sail in calm waters. What about the impact of capital flights, with billions of dollars stolen from the nation’s coffers.
Yes, Nigerian importers will be affected especially those of luxury goods; Nigeria Media Tourism
Yes, Medical and Educational tourism will be affected but industrial machinery that would be used in the industrialisation of the country as well as their spare parts will not be negatively impacted.
Yes, currency speculators and “round trippers” will be affected for the good of the country.
Please check the exchange rate for the Chinese currency to US$ or GB£ today and advise whether it is commensurate with that of the second largest economy in the world.
China’s economy is currently sneezing and the world is jittery”, explained by Dr Yemi Adegoke, an industrialist.
Let’s call our economic management team members and ask them the questions rather than call the dog a bad name to hang it.
On the focus on corruption, the only way we could respond to some of our attitude is to use a building metaphor of a house leaking in the roof, dodgy plumbing, subsidence at the foundation, dry rot in the fabric and faded external painting.
The calls to face the decorative aspect of external painting without tackling the structural underlying issues of the house would be an exercise in futility and eventually end in the same socio-economic and political cul-de-sac that we currently find ourselves. The Government’s strategic focus and resolute in fighting corruption must be seen as the main hub for achieving economic stability and growth and not just one of its spokes.
Tangible gains have been made, including identifying large-scale misappropriation, recovering over one trillion Naira in just seven months.
The challenges we face transcends party politics, ethnic or religious affiliation contrary to what those caught with their soiled hands in the cookie jars will say.
While the Nigerian Leadership Forum would like to commend the Government for the milestones reached so far, we would like to appeal to the government to urgently put the correct structure and policy in place to ensure the stabilisation of the economy and the Naira. This may include organising a national economic stabilisation conference.
The Nigerian Leadership Forum invites willing partners and stake-holders to a meeting of banks and business men to discuss ways forward with the private sector and NEW ENTREPRENEURS that will take direction and mentorship and build a new manufacturing base for Nigeria. The stakeholders’ team should comprise young, dynamic leaders and willing partners.
We need the President and his team to welcome other ideas and views on the approach to developing sustainable economic policy which is more inward looking and grass-root orientated that would deliver sustainable economic and social dividends to Nigerians.
NIGERIA as a nation depends far too much on imports – this must stop. We would like to see the Minister of Trade & Investment etc compile a list of all imports and prepare a study/report of which ones can be produced in Nigeria by categories and processing time.
For examples; The ones Nigeria can produce right away, the ones that require 3 to 6 months, or those requiring 6 to 12 months and the ones requiring longer terms.
The pressure on the naira is coming from four sources
1. Imports (including generators, fuel, consumer products)
2. Schools fees
3. Medical bills
4 Capital flight ( corruption and money laundering)
These can be redressed by redirecting the demand and the naira can gain back considerable value.
Fellow Nigerians, let’s us start producing, let us start buying made in NIGERIA goods If our economy is to grow and create better jobs.
How can a country like Nigeria be importing toothpick, cutting bud, cotton wool, matches, rubber band e.t.c?
The situation is even pathetic now when you see Nigerians prefer another African country’s garri to that of Ijebu, buy their pineapple and they say it is better than that of Nigeria.
That is why you will see an expatriate remuneration been juicier than that of his Nigeria counterpart even if that Nigerian is more certificated than the expatriate. (This also happen in government parastatals).
Any nation that import majorly foreign made goods/ services rather than producing their own are hurting its people….
When we keep importing foreign made products into Nigeria, we keep importing poverty into our country and exporting jobs abroad…
Let’s go back to the land to grow and patronise MADE IN NIGERIA products
Few years ago, in India, you have to pay more than 1000% duty on imported luxury cars and other non essential items. The Nigerian economy as being managed has brought little or no improvement to the lives of the common people and NO COUNTRY IN THE WORLD PRACTICES THE UNFETTERED IMPORTATION OF GOODS LIKE NIGERIA WAS.
We are not defending anyone but merely situate issues in contextual settings. For example, If the Chinese solution of executing people found guilty of corruption were to be implemented in Nigeria, there would be a near break-up of the communities due to an absence of nationally agreed value system.
On the role of the market, we should be careful as Stiglitz argued, the market is not blind or neutral as we are being taught. It could and is being manipulated by players as countless criminal investigations and prosecutions have shown.
USA spent its way out of recession with public funds to help “too big to fall” banks and financial institutions. The UK government and other Western countries did similar intervention but their system would frown on any developing country doing similar things. The market reflects is fickle and reflects certain entrenched interests. When they had interest and working with the previous administrations, what direct and indirect benefits did they bring to the table or contribute to the country’s teeming poor?
The market follows profit and if tomorrow the economy picks up, they will be back and if you try to prevent them, their home countries will make a song and dance about it.
In conclusion, it will be better and ideal we’d rather wait until 18 months after an appointment of 4 years before we pass a definitive comment on performance.
The Nigerian government should look more inwardly towards indigenous industrialisation strategy to boost local production of those essential products that we may have a more positive comparative advantage and the development of our local industries.
We are happy to recommend the “LOCAL CONTENT STRATEGIC INITIATIVE” which we have been found to support the designed and development of local products or local inputs into the value chain of many industries. We would love to see a National rebirth to thinking and acting local. We can get out of this mess but we need strong leadership.
The Nigeria Leadership Forum is a global Nigeria-Focused Think Tank base in Europe with diverse professional members and experts. www.nidmecorp.com
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