By
Sampson Iroabuchi Onwuka
I Charles Soludo and Re-Denominating Nigerian Naira
We should begin by citing that the man who began this effort to stabilize the Nigerian Naira is the former Central Bank Chairman Charles Soludo. Charles Soludo was perhaps the first in recent years to speak of re-denominating the Naira and the persecution he got for it didn't seem to raise the curiosity of many Nigerians. The question is no longer is he was right or whether his suggestions of re-valuating the last 00 integer on the Nigerian Naira is a good canvass or not? The question is now how exactly did he propose to integrate his suggestions or other right course of action as from Sanusi into the growing economic gap of Nigerians and the World. The other question which we should not try to answer is if Soludo fall from grace was from this issue and from other public persecution? It must be said that Nigeria from its earlier years has always stressed the importance of its currency and from earlier years until now, it has tried its hands with various means of managing its currency including occasional reprinting of these curios notes to stem the tide of laundry.
There is the issue of liberal notes of foreign denomination in Nigeria, the prevalence of foreign notes or currencies in Nigerian Black Market and on the street has paved the way for several attempts at money laundry, where as criminal organization would have found it hard to earn through currency, heavily available Nigerian Naira for foreign currency of any type is increasingly lucrative and indulgent exercise. But all these can be arrested if the currency is re-denominated.
Balance of Trade, Deficit Spending, Inflation, and improper employment gauges are part of its sickness, then there is issue of 'implosion', characterized by undue plutocrats and monopoly by a new and rising few in Nigeria. To suggest that Nigeria as a country is actually doing better than its looks is hard case given the fact that many people living now around the world have not seen or heard of MADE IN NIGERIA product. The question is, how do Nigerians fail to profit from the big booms in the world, for instance the Internet, where as the poor crowd in these countries will be expected to have to manufacture these products themselves or import it a highest price to the country. In force, one of the problems why Nigeria, to some degree Ghana and West Africa is a dumping Ground for all illegal products - particularly drugs - is the issue of import Tariffs which many of these importers have no time of day to follow. It needs be mentioned in current time, it was Ghana that took the advice seriously and went the distance of removing the re-denominating their Ghanaian Cider. Ghana today is a success story largely for the fact that the age of Military finally gave way to a way of life in Ghana, and with that new way of life is the discovery of crude oil in Ghana.
Whereas the same advice for currency re-denomination that Soludo petitioned for was resisted in Nigeria, and some of the basic reasons for the resistance is that many persons of interest stood to loose a lot of very personal business and there was also the problem of exchange rate. Perhaps the resistance was due to the fact that the country was not ready for it then, which does not in anyway mean that Nigeria is now ready for it. For the fact that country is not ready was any changes with its currency does not mean that it is not the right course of action. Whatever may be the case, we can argue that Nigerian Naira has not exactly attracted the attention of the world since the currency is relatively new and that Nigerians, may not be doing something that wrong or unheard since the end result of any currency is in its application.
It is this author argument that re-denominating Nigerian Naira is however appropriate now in the country now than anytime and that the nation need act decisively and without excessive consultation regarding the placement of its resources and foreign embargo, since any such future would force the notional speculations on Naira's future and adverse outcome in shorting on the Naira to be fully exercised. That will be very bad for Nigeria or for the exercise. I also recommend an Indian System and the dalliance with crib notes.The re-denominating the Naira (even if it means removing a couple of Zeros of the Naira as Soludo suggested) is appropriate since the Nigerian Economic Structure, efficient money system is not well developed for that, Nigeria re-denominating its currency will propel itself into the future with the new resolve. It is not advisable to engage this exercise when your economy is doing badly, it is better when you are fairing better than expect, this is the whole meaning of St. Peterburg's Paradox and ordinals of Daniel Bernoulli
II THE PROBLEMS ECOWAS
May 28th, 1975 is a date that many old West African citizens living now remember as a date when the theory of economic "self sufficiency" of the Economic Community of West African States was initiated. The first phase of that initiative was designed to cover the ECOWAS experiment was slated to cover the questions of trans-border trade and then the process of economic unity between the member states. Ultimately these economic co-operation - not unlike the European Model - it was meant to arrive the West African nations a home run on one single currency. Some of the assumptions from the ECOWAS resolutions were eventually challenged by Nigerians and Ghanians, with individuals of import such as Ralph Onwuka (no relation) throwing in their dissent, including latterly, Amadu Sesay, and Aluko Olajide who joined the fore mentioned in 86 'The Future of Africa and New International Economic Order';86. Needless to say that their book raised several questions about the illusions of West Economic Society and NIE 'New International Economic Order' as derived from Europe, but did not exactly convert the questions to answers. But from the defense pact and from policies prodded by Government, it seems common sense that the business structure on these West African countries was likely to change, so also the structure and business community.
The full implementation of ECOWAS took place in 1979, set against the cultural unity of Expo '77, West Africa, braced the region for a future which included single currency money, but did not incorporate the price of that economic banter, for instance, debt across the border, problems of credit and the issue of acceptance in the Global economy. In Nigeria and in West Africa these days, we hear of the 'Millennium Development Goals', 'Privatization Schemes', 'Balance of Payment', 'Austerity Measures' (removal of oil subsidy), 'Foreign Direct Investment', IDAs, FDI; Foreign Direct Investment', 'Debt Crisis', but all of these are IMF measures which Nigeria that is U.S centered has no real party. But these Schemes exist and part of Nigerian politics and part of the Nigerian running of their plans for BETTER LIFE. This better life the case of Argentina and Mexico, like Brazil of the 70's and Korea of 70's, will not be achieved under these programs that are run by IMF.
If the total amount of energy required to create a business circle is equal to the force produced, then the growth of a third world Nigeria is priced into the overall growth of the IMF owner countries, and such endless conundrum is created to enabled degree that the present continuous time economic scheme and development project in Nigeria or other third world economies would never be enough to break free from the grips of the G-7. By accepting loans from IMF and WORLD BANK, the good fortunes of these Nigerians is stymied by process such that they can never succeed in current market and by future adverse effects since the Schemes creates an uncontested cyclonic pyramid and the end result is that Nigeria for instance, will always diminish in value.
Speaking of the politics, Nigerian President Goodluck Jonathan, who is battling the insurgence, the Boko Haram may have 'started' by the support of AUST; African University of Science and Technology and the promise to help Nigerian the Film Industry with a 3 Billion Naira, is supposed to be a welcome news. He has also began work on Electric Power Authority; NEPA and has signed new contracts concerning the Rail Roads, all to be settled in dollars. Under his leadership Nigeria received all sorts of incentives and in the riverside areas of South South, there is an international help, some from World Bank in tackling the problems associated with growth over these areas. But these things are not done for free and for the most part it is a product of IMF loans which is bound to the Nigerian Crude Oil. This is not without the help and lengthy court process and going by the effects of business transaction, there is more less that can be said about this. Pump money into Nigeria system is supposed to devalue Naira, meaning, with an end of year speculation. The aggregate amount of financial loses that Nigeria could incur, does not correspond to the overall investment.
III IMF
Nigerians has been forced to blend in to the fact that there is a New World Money Order called Euro. There is nothing wrong in accepting the doctrines of European Union and it does not seem that the policies pursued by Europe is as bad and misleading policy. Yes, some versions of the policies are desperate conceived for Third World economies or whatever name that is applicable and in terms of the quality of European Economy and its no-grow economy, these IMF programs and loans are very not called for and are basically predisposed to debtors damages.
Nigerian Oil Subsidy, ECOWAS; Economic community of West African States, Government policies driving currencies, SAP; Structural adjustment programs, WAI; War against indiscipline, Better life Program, 1986 Austerity Measures, Privatization Scheme, Removal of Crude oil Subsidy have all come and gone but IMF has still tied the country's future to these schemes and to Debt that don't count as a credit and has forced Nigeria and some West African countries downward with its policies, policies that even a progressive third world economy like Nigeria, can no longer absorb. It may be shown that these Scheme may not be appropriate since the structure has not lasted and that Nigeria has become a tool for G-7 countries of the World to survive. By so doing, it may just be said that Nigerians have done much of their job as the case with this specialist Banks such as IMF, which is one the Banks that tare owed by the International Banks through Banks operating across European Border. Yet in all Nigeria Naira is traded freely and floating freely and the economy itself is not doing that badly compared to many other Nations in the world. If Nigerian Naira is trading freely by the day and Nigerian Central Banks spend all the time in the world, conducting foreign currency from these same G-7 countries into Nigeria, the countries is basically hurting itself a sheer equivalence of Unequal Treaty. But International is product of a given market and the nations responsible for these trades are entirely responsible for it.
From that vintage of Economy corporation of West African Economies, we can now begin to understand the full measure of these theories since it also managed to lay the foundations for what became an IMF dominated economic theories in West Africa and particularly Nigeria. It was only a question of time that the theories of 'Structural Adjustment Program' which the IMF first used in Mexico, was applied to Indonesia and Nigeria, all of three whom fell victims to SAP as IMF defrayed its economic losses to these countries, to some oil-rich Asian Tigers to South Americans saving Brazil but not Argentina. But it may not have the original intention of IMF, but as some people may have also indicated that it didn't matter at all given the recurrent problem of debts incurred by these countries and the IMF willingness to defray these to crude oil. Above all, IMF and eventually World Bank was also intent of pursuing through some of the highlighted options for industrial development in these areas, and in return for the funding which even India got, these countries with crude resources where to meet the obligation in debt without knowing that the total accumulation of white elephant projects in the third world economies was one of the reasons why structure damage of its finances where possible in the first place. It was supposedly initiated in keeping to the Brenton Wood Agreement and it was done through IMF in order of John Maynard Keynes.
Conclusion
Nigeria can better serve the World, Africa, particularly West Africa, and above all itself if it chooses to abandon the current ratio of Nigeria Naira to the rest of world as determined by a market standing that they has kept them in negative territory from day one and may not escape from given the problems inherited from the Colonials years. There is also the issue of world markets which forced Nigeria into all kinds of instability and one that failed to create jobs.
The exchange rate of this country can better enhance its business portfolio in terms of the world if as suggested by others that the last two '00' of its current note can be denominated away from its current hiatus since the expensive Naira is a currency that suffers in neglect due to its previous militarily dominated economic past. The current democratic government should not inherit such sickness, or should they should the seating government force Nigerians (general market) to suffer the excessive devaluation of its goods because of poor currency rotation. Nigerian currency rate makes it impossible for Made in Nigerian products to reach others outside Nigeria, and for that, export tanks in Nigeria saving for the diminishing 'crude' oil and for Human resources; Nigerians traveling abroad. When any nation on earth is producing for public use other than its market, it is in fact not a market in the global macro and it is ultimately an economically dependent country. If or when the country decides to act, it must remember that the Great Migration of Nigerians into China and into
Sampson Iroabuchi Onwuka
I Charles Soludo and Re-Denominating Nigerian Naira
We should begin by citing that the man who began this effort to stabilize the Nigerian Naira is the former Central Bank Chairman Charles Soludo. Charles Soludo was perhaps the first in recent years to speak of re-denominating the Naira and the persecution he got for it didn't seem to raise the curiosity of many Nigerians. The question is no longer is he was right or whether his suggestions of re-valuating the last 00 integer on the Nigerian Naira is a good canvass or not? The question is now how exactly did he propose to integrate his suggestions or other right course of action as from Sanusi into the growing economic gap of Nigerians and the World. The other question which we should not try to answer is if Soludo fall from grace was from this issue and from other public persecution? It must be said that Nigeria from its earlier years has always stressed the importance of its currency and from earlier years until now, it has tried its hands with various means of managing its currency including occasional reprinting of these curios notes to stem the tide of laundry.
There is the issue of liberal notes of foreign denomination in Nigeria, the prevalence of foreign notes or currencies in Nigerian Black Market and on the street has paved the way for several attempts at money laundry, where as criminal organization would have found it hard to earn through currency, heavily available Nigerian Naira for foreign currency of any type is increasingly lucrative and indulgent exercise. But all these can be arrested if the currency is re-denominated.
Balance of Trade, Deficit Spending, Inflation, and improper employment gauges are part of its sickness, then there is issue of 'implosion', characterized by undue plutocrats and monopoly by a new and rising few in Nigeria. To suggest that Nigeria as a country is actually doing better than its looks is hard case given the fact that many people living now around the world have not seen or heard of MADE IN NIGERIA product. The question is, how do Nigerians fail to profit from the big booms in the world, for instance the Internet, where as the poor crowd in these countries will be expected to have to manufacture these products themselves or import it a highest price to the country. In force, one of the problems why Nigeria, to some degree Ghana and West Africa is a dumping Ground for all illegal products - particularly drugs - is the issue of import Tariffs which many of these importers have no time of day to follow. It needs be mentioned in current time, it was Ghana that took the advice seriously and went the distance of removing the re-denominating their Ghanaian Cider. Ghana today is a success story largely for the fact that the age of Military finally gave way to a way of life in Ghana, and with that new way of life is the discovery of crude oil in Ghana.
Whereas the same advice for currency re-denomination that Soludo petitioned for was resisted in Nigeria, and some of the basic reasons for the resistance is that many persons of interest stood to loose a lot of very personal business and there was also the problem of exchange rate. Perhaps the resistance was due to the fact that the country was not ready for it then, which does not in anyway mean that Nigeria is now ready for it. For the fact that country is not ready was any changes with its currency does not mean that it is not the right course of action. Whatever may be the case, we can argue that Nigerian Naira has not exactly attracted the attention of the world since the currency is relatively new and that Nigerians, may not be doing something that wrong or unheard since the end result of any currency is in its application.
It is this author argument that re-denominating Nigerian Naira is however appropriate now in the country now than anytime and that the nation need act decisively and without excessive consultation regarding the placement of its resources and foreign embargo, since any such future would force the notional speculations on Naira's future and adverse outcome in shorting on the Naira to be fully exercised. That will be very bad for Nigeria or for the exercise. I also recommend an Indian System and the dalliance with crib notes.The re-denominating the Naira (even if it means removing a couple of Zeros of the Naira as Soludo suggested) is appropriate since the Nigerian Economic Structure, efficient money system is not well developed for that, Nigeria re-denominating its currency will propel itself into the future with the new resolve. It is not advisable to engage this exercise when your economy is doing badly, it is better when you are fairing better than expect, this is the whole meaning of St. Peterburg's Paradox and ordinals of Daniel Bernoulli
II THE PROBLEMS ECOWAS
May 28th, 1975 is a date that many old West African citizens living now remember as a date when the theory of economic "self sufficiency" of the Economic Community of West African States was initiated. The first phase of that initiative was designed to cover the ECOWAS experiment was slated to cover the questions of trans-border trade and then the process of economic unity between the member states. Ultimately these economic co-operation - not unlike the European Model - it was meant to arrive the West African nations a home run on one single currency. Some of the assumptions from the ECOWAS resolutions were eventually challenged by Nigerians and Ghanians, with individuals of import such as Ralph Onwuka (no relation) throwing in their dissent, including latterly, Amadu Sesay, and Aluko Olajide who joined the fore mentioned in 86 'The Future of Africa and New International Economic Order';86. Needless to say that their book raised several questions about the illusions of West Economic Society and NIE 'New International Economic Order' as derived from Europe, but did not exactly convert the questions to answers. But from the defense pact and from policies prodded by Government, it seems common sense that the business structure on these West African countries was likely to change, so also the structure and business community.
The full implementation of ECOWAS took place in 1979, set against the cultural unity of Expo '77, West Africa, braced the region for a future which included single currency money, but did not incorporate the price of that economic banter, for instance, debt across the border, problems of credit and the issue of acceptance in the Global economy. In Nigeria and in West Africa these days, we hear of the 'Millennium Development Goals', 'Privatization Schemes', 'Balance of Payment', 'Austerity Measures' (removal of oil subsidy), 'Foreign Direct Investment', IDAs, FDI; Foreign Direct Investment', 'Debt Crisis', but all of these are IMF measures which Nigeria that is U.S centered has no real party. But these Schemes exist and part of Nigerian politics and part of the Nigerian running of their plans for BETTER LIFE. This better life the case of Argentina and Mexico, like Brazil of the 70's and Korea of 70's, will not be achieved under these programs that are run by IMF.
If the total amount of energy required to create a business circle is equal to the force produced, then the growth of a third world Nigeria is priced into the overall growth of the IMF owner countries, and such endless conundrum is created to enabled degree that the present continuous time economic scheme and development project in Nigeria or other third world economies would never be enough to break free from the grips of the G-7. By accepting loans from IMF and WORLD BANK, the good fortunes of these Nigerians is stymied by process such that they can never succeed in current market and by future adverse effects since the Schemes creates an uncontested cyclonic pyramid and the end result is that Nigeria for instance, will always diminish in value.
Speaking of the politics, Nigerian President Goodluck Jonathan, who is battling the insurgence, the Boko Haram may have 'started' by the support of AUST; African University of Science and Technology and the promise to help Nigerian the Film Industry with a 3 Billion Naira, is supposed to be a welcome news. He has also began work on Electric Power Authority; NEPA and has signed new contracts concerning the Rail Roads, all to be settled in dollars. Under his leadership Nigeria received all sorts of incentives and in the riverside areas of South South, there is an international help, some from World Bank in tackling the problems associated with growth over these areas. But these things are not done for free and for the most part it is a product of IMF loans which is bound to the Nigerian Crude Oil. This is not without the help and lengthy court process and going by the effects of business transaction, there is more less that can be said about this. Pump money into Nigeria system is supposed to devalue Naira, meaning, with an end of year speculation. The aggregate amount of financial loses that Nigeria could incur, does not correspond to the overall investment.
III IMF
Nigerians has been forced to blend in to the fact that there is a New World Money Order called Euro. There is nothing wrong in accepting the doctrines of European Union and it does not seem that the policies pursued by Europe is as bad and misleading policy. Yes, some versions of the policies are desperate conceived for Third World economies or whatever name that is applicable and in terms of the quality of European Economy and its no-grow economy, these IMF programs and loans are very not called for and are basically predisposed to debtors damages.
Nigerian Oil Subsidy, ECOWAS; Economic community of West African States, Government policies driving currencies, SAP; Structural adjustment programs, WAI; War against indiscipline, Better life Program, 1986 Austerity Measures, Privatization Scheme, Removal of Crude oil Subsidy have all come and gone but IMF has still tied the country's future to these schemes and to Debt that don't count as a credit and has forced Nigeria and some West African countries downward with its policies, policies that even a progressive third world economy like Nigeria, can no longer absorb. It may be shown that these Scheme may not be appropriate since the structure has not lasted and that Nigeria has become a tool for G-7 countries of the World to survive. By so doing, it may just be said that Nigerians have done much of their job as the case with this specialist Banks such as IMF, which is one the Banks that tare owed by the International Banks through Banks operating across European Border. Yet in all Nigeria Naira is traded freely and floating freely and the economy itself is not doing that badly compared to many other Nations in the world. If Nigerian Naira is trading freely by the day and Nigerian Central Banks spend all the time in the world, conducting foreign currency from these same G-7 countries into Nigeria, the countries is basically hurting itself a sheer equivalence of Unequal Treaty. But International is product of a given market and the nations responsible for these trades are entirely responsible for it.
From that vintage of Economy corporation of West African Economies, we can now begin to understand the full measure of these theories since it also managed to lay the foundations for what became an IMF dominated economic theories in West Africa and particularly Nigeria. It was only a question of time that the theories of 'Structural Adjustment Program' which the IMF first used in Mexico, was applied to Indonesia and Nigeria, all of three whom fell victims to SAP as IMF defrayed its economic losses to these countries, to some oil-rich Asian Tigers to South Americans saving Brazil but not Argentina. But it may not have the original intention of IMF, but as some people may have also indicated that it didn't matter at all given the recurrent problem of debts incurred by these countries and the IMF willingness to defray these to crude oil. Above all, IMF and eventually World Bank was also intent of pursuing through some of the highlighted options for industrial development in these areas, and in return for the funding which even India got, these countries with crude resources where to meet the obligation in debt without knowing that the total accumulation of white elephant projects in the third world economies was one of the reasons why structure damage of its finances where possible in the first place. It was supposedly initiated in keeping to the Brenton Wood Agreement and it was done through IMF in order of John Maynard Keynes.
Conclusion
Nigeria can better serve the World, Africa, particularly West Africa, and above all itself if it chooses to abandon the current ratio of Nigeria Naira to the rest of world as determined by a market standing that they has kept them in negative territory from day one and may not escape from given the problems inherited from the Colonials years. There is also the issue of world markets which forced Nigeria into all kinds of instability and one that failed to create jobs.
The exchange rate of this country can better enhance its business portfolio in terms of the world if as suggested by others that the last two '00' of its current note can be denominated away from its current hiatus since the expensive Naira is a currency that suffers in neglect due to its previous militarily dominated economic past. The current democratic government should not inherit such sickness, or should they should the seating government force Nigerians (general market) to suffer the excessive devaluation of its goods because of poor currency rotation. Nigerian currency rate makes it impossible for Made in Nigerian products to reach others outside Nigeria, and for that, export tanks in Nigeria saving for the diminishing 'crude' oil and for Human resources; Nigerians traveling abroad. When any nation on earth is producing for public use other than its market, it is in fact not a market in the global macro and it is ultimately an economically dependent country. If or when the country decides to act, it must remember that the Great Migration of Nigerians into China and into
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