By Jon West
The inevitable decline of rational and intellectual thinking at the commanding heights of socioeconomic and political process in Nigeria was brought to the fore by the recent interaction between the Governor of the Central Bank of Nigeria, Godwin Emefiele, a “seasoned Banker”, and members of the Finance Committee of the Senate. In response to concerns about the rapid depreciation of the national currency, the Naira, in the unofficial current market, as a reaction to plummeting oil prices and the depletion of national hard currency reserves, the guardian of Nigeria’s monetary policy had this to say:
“Nigerians(and the Senate) should not worry about the falling value of the Naira currently” , assuring that the value of the currency would soon stabilise. He added; ” By our records, 45 per cent of our foreign exchange earnings go into importation of food, fuel and fertilisers. With the coming on board of Dangote factories, we are sure that 45% will stay with us. That is why we are backing him to complete the projects in record time”.
In a nutshell, and according to Emefiele, the fortunes of Dangotes factories constitute the basis of Nigerian monetary policy. Did Emefiele say this , and in the hallowed chambers of the Senate? If indeed he was quoted correctly, the the descent to mediocrity and ineptitude as Government policy has found new impetus in the current Chanji ideology. This reliance on the fortunes of a single ‘industrialist’ for the economic salvation of over 100million Nigerians is equivalent to India relying on the Ambani brothers of Reliance notoriety for national fiscal policy.
It’s quite interesting that both Dangote and the Ambani brothers, Anil and Mukesh, are really products of sweetheart monopoly arrangements by the power elite, which has succeeded in making the beneficiaries’ immense wealth dependent, not really on the productive aspects of their commercial activities, but the exploitation of immensely favourable fiscal policies, tax breaks, foreign exchange support with round tripping and arbitrage opportunities, subsidies etc. How can this be the basis of a country’s fiscal policy?
As if this was not enough, both the Vice President and the Minister of State for Petroleum Resources, at the Davis economic summit, also made statements that betrayed their poor appreciation of the economic predicament of the country. The Vice President waxed lyrical about the positive effects of the end of petroleum subsidy(expected to end this year ) on the viability of the 2016 budget, without saying anything about plans to end the absurd situation where the 6th largest exporter of crude oil needs to import refined products;, while,the Minister was effusive about Nigeria’s ability to survive $20 per barrel oil, because of average production costs of $13 per barrel for onshore fields. It did not occur to the Harvard alumnus, that a Country of over 100million, cannot sustain the economic and social consequences of an 70-80% drop in revenue.
As if this was not enough, both the Vice President and the Minister of State for Petroleum Resources, at the Davis economic summit, also made statements that betrayed their poor appreciation of the economic predicament of the country. The Vice President waxed lyrical about the positive effects of the end of petroleum subsidy(expected to end this year ) on the viability of the 2016 budget, without saying anything about plans to end the absurd situation where the 6th largest exporter of crude oil needs to import refined products;, while,the Minister was effusive about Nigeria’s ability to survive $20 per barrel oil, because of average production costs of $13 per barrel for onshore fields. It did not occur to the Harvard alumnus, that a Country of over 100million, cannot sustain the economic and social consequences of an 70-80% drop in revenue.
The foregoing revelations do not bode well for the economic future of Nigeria, as these inexplicably pedantic rantings from the commanding heights of Nigerian political and economic policies, confirm the national slide to economic, fiscal and social ineptitude. If these are the the ideas of our leaders, then we are headed on the road to national perdition.
The destructive, heady influence of easy oil revenues on the application of basic knowledge to the solutions for our problems has now come to the fore. Oil and the greed associated with its easy money underpinnings, has destroyed the ability for Nigeria to be an economically and intellectually independent state.
The destructive, heady influence of easy oil revenues on the application of basic knowledge to the solutions for our problems has now come to the fore. Oil and the greed associated with its easy money underpinnings, has destroyed the ability for Nigeria to be an economically and intellectually independent state.
Emefiele, Osinbajo and Kachikwu’s forays at the Senate and Davos are rude awakenings that should frighten those who still have hope for a Nigerian Renaissance . The greed generated by cheap oil money has finally destroyed the last vestiges of intellectual thought in Nigeria.
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