WITH ALL OF OUR EGO AND PRIDE AS SUPPOSED GIANT OF AFRICA – 5 GHANIAN CEDI (GHC) IS EQUIVALENT TO ALMOST 500 NIGERIAN NAIRA (N)
June 12, 2021 | News
Nigerians have always been known to brag and pride itself as the supposed giant of Africa. Probably because of its sheer size and population as the world’s most populous black nation in Africa, and the abundant natural and human resourcefulness it has, despite being the world’s poverty capital having overtaken Indian on that spot few years ago.
-By Zik Gbemre
WITH ALL OF OUR EGO AND PRIDE AS SUPPOSED GIANT OF AFRICA – 5 GHANIAN CEDI (GHC) IS EQUIVALENT TO ALMOST 500 NIGERIAN NAIRA (N)
We cannot be claiming to be Africa’s biggest economy when our Nigerian currency is becoming valueless in the face of Africa…
The Government cannot be flooding the system with printed money and expect inflation not to be high in an economy that produces next to nothing…
“A country led by apparently visionless leaders, which produces almost nothing, will never meet up. Policies only control your currency, not the value of another countries currency against yours…”
Nigerians have always been known to brag and pride itself as the supposed giant of Africa. Probably because of its sheer size and population as the world’s most populous black nation in Africa, and the abundant natural and human resourcefulness it has, despite being the world’s poverty capital having overtaken Indian on that spot few years ago.
Well, someone just busted out laughing at our bubbles with all of our egos, in a viral video online recently, as he showed how just 5 Ghanian Cedi (GHC) is almost equivalent to Nigeria’s 500 Naira. I am sure many Nigerians are shocked by this obvious revelation. The person in the said video then went on to say how the Nigerian Central Bank Governor, Godwin Emefiele, does not seem to understand inflation. As they are denying that they did not print N60billion. Whereas, this same guy in the video, showing an N1000 note which was printed in 2021, and has been in circulation. Even with the Federal Government still denying they did not print any money. Obviously overwhelmed and disappointed, the said guy in the video concluded with these words: “I pity us for this country. We be dey de to find ‘Change" – The Change has come!”
Let us recall that some weeks back, the Edo State Governor, Godwin Obaseki, revealed how the Federal Government printed an additional 50 to 60 billion to augment its March Federal allocations to States across the country. And he explained the dire and severe financial crises Nigeria has continued to be inside because of the way our past and present leaders have been running the country with their skewed and unproductive leadership style. In the words of Governor Obaseki: “Because of crude oil, we always believe that there will always be money. So, we run a very strange economy and strange Presidential system where people; the local government, the State governments, the Federal government, at the end of every month, they go and earn a salary.”
In response to that revelation by Obaseki, I wrote a piece, in which I stated that this is primarily because, as a country, we have allowed the discovery of crude, condensate and natural gas, and the huge money it brought, to make our political leaders at all levels of Government practically lazy, and not wanting to think on innovative ways to internally create wealth for the people. Even with the enormous oil wealth, our political leaders have over the years, been running governments that are wasteful, rather than using the oil/gas wealth to develop other sectors to boost and sustain the entire economy of the country. They have also maintained a culture of external borrowing to ‘sustain their waste.’ This has left us with a country that is seriously in debt, and the majority of its people regarded as the poorest in the world.
In case you are wondering how Ghana’s currency is now stronger than that of Nigeria. According to Wikipedia, “the economy of Ghana has a diverse and rich resource base, including the manufacturing and exportation of digital technology goods, automotive and ship construction and exportation, and the exportation of diverse and rich resources such as hydrocarbons and industrial minerals. These have given Ghana one of the highest GDP per capita in West Africa. Owing to a GDP rebasement, in 2011 Ghana became the fastest-growing economy in the world. The Ghanaian domestic economy in 2012 revolved around services, which accounted for 50% of GDP and employed 28% of the workforce. Besides the industrialization associated with minerals and oil, industrial development in Ghana remains basic, often associated with plastics (such as for chairs, plastic bags, razors, and pens). 53.6% of Ghana's workforce were employed in agriculture in 2013.
“Ghana embarked on a currency re-denomination exercise, from Cedi (?) to the new currency, the Ghana Cedi (GH?) in July 2007. The transfer rate is 1 Ghana Cedi for every 10,000 Cedis. Ghana is Africa's largest gold producer, after overtaking South Africa in 2019, and the second-largest cocoa producer (after Côte d'Ivoire). It is also rich in diamonds, manganese ore, bauxite, and oil. Ghana's industrial base is relatively advanced. Import-substitution industries include electronics manufacturing. Rlg Communications is the first indigenous African company to assemble laptops, desktops, and mobile phones, and is West Africa's biggest information and communications technology (ICT) and mobile phone manufacturing company.”
Here in Nigeria, it is apparent that Emefiele’s CBN has unofficially devalued the Nigerian Naira because the Naira hit N413.25 to the US Dollar recently. It is no news that Nigeria has not developed as it ought to, which is basically because the country’s past and present political leaders have been ‘comfortable’ with the fact that the country has remained a Consuming nation rather than a Productive nation.
Nigeria has always been a country that imports each of its consumable items from other countries. But the question is, what has the current administration done to reverse this trajectory? Have they not made it worse since they came in? Right now, the country is about importing fuel from the Republic of Niger. A product that we have in abundance in reserves and which we can actually be the ones exporting to other nations if only our political leaders would do the right thing. In other words, if the current President of Nigeria has refused to, or not willing to provide the ‘enabling environment’ for industries and the productive sector to strive, and for prospective investors to find attractive, then whose fault is it, should the Nigerian currency continue to depreciate at an alarming rate? Who should take responsibility for what is happening to the nation’s currency in the face of the US Dollar and Ghana Cedi?
As noted by Dr. Oni Gbolabo in a recent write-up: “A confused country (led by apparently visionless President), that produces almost nothing, will never meet up. Policies only control your currency, not the value of another countries currency against yours.”
Nigeria, as a country, as noted by Gbolado, is: “A country where over 500 industries died within 30 years… A country that exports all raw materials without adding value… A country that deliberately operates a banking system that gives loans to importers at the expense of local industries… A country that gives loans in billions to the Agric sector without Monitoring & Evaluation of such loan on how it gets to the real farmers…A country that spends more on few privileged politicians at the cost of the populace who are unemployed… A country that keeps paying NNPC staff N10 billion as salaries every month when a single drop of petrol was not processed… A country where it is difficult for investors to register businesses because of the government officials demanding bribes… A country where the cost of traveling for treatment abroad by officials will build world-class hospitals… A country where few people have access to the federal reserve and those few can get loans are not because of what they can produce but the connection they have… A country where we import what we produce because it's cheaper over there, should not complain about the depreciation of its Naira against other currencies.
“A country that has arable land, teaming idle youths and still complain of hunger… A country where free money flows can never control the inflow and outflow of forex… A country where banks are involved in round-tripping and inflated cost to siphon money is doomed…”
It is the duty of the Executive Governments - President and Governors, to provide the vision and direction of development by investing heavily in the provision of the necessary infrastructure and conducive atmosphere for industrial development. Where there are no reliable power supply, no security assurance due to the criminal activities of Boko Haram, Fulani herdsmen, kidnappers, armed robbers, etc., no good Federal and State roads, no good standard airports (like the oil city of Warri has been without a standard and functional airport), no functional Sea Port across the regions where they are meant to be and not just concentrated in Lagos; then one begins to wonder if really we have a Government in this country or not?
Zik Gbemre.
June 12, 2021
We Mobilize Others To Fight For Individual Causes As If Those Were Our Causes
-By Zik Gbemre
WITH ALL OF OUR EGO AND PRIDE AS SUPPOSED GIANT OF AFRICA – 5 GHANIAN CEDI (GHC) IS EQUIVALENT TO ALMOST 500 NIGERIAN NAIRA (N)
We cannot be claiming to be Africa’s biggest economy when our Nigerian currency is becoming valueless in the face of Africa…
The Government cannot be flooding the system with printed money and expect inflation not to be high in an economy that produces next to nothing…
“A country led by apparently visionless leaders, which produces almost nothing, will never meet up. Policies only control your currency, not the value of another countries currency against yours…”
Nigerians have always been known to brag and pride itself as the supposed giant of Africa. Probably because of its sheer size and population as the world’s most populous black nation in Africa, and the abundant natural and human resourcefulness it has, despite being the world’s poverty capital having overtaken Indian on that spot few years ago.
Well, someone just busted out laughing at our bubbles with all of our egos, in a viral video online recently, as he showed how just 5 Ghanian Cedi (GHC) is almost equivalent to Nigeria’s 500 Naira. I am sure many Nigerians are shocked by this obvious revelation. The person in the said video then went on to say how the Nigerian Central Bank Governor, Godwin Emefiele, does not seem to understand inflation. As they are denying that they did not print N60billion. Whereas, this same guy in the video, showing an N1000 note which was printed in 2021, and has been in circulation. Even with the Federal Government still denying they did not print any money. Obviously overwhelmed and disappointed, the said guy in the video concluded with these words: “I pity us for this country. We be dey de to find ‘Change" – The Change has come!”
Let us recall that some weeks back, the Edo State Governor, Godwin Obaseki, revealed how the Federal Government printed an additional 50 to 60 billion to augment its March Federal allocations to States across the country. And he explained the dire and severe financial crises Nigeria has continued to be inside because of the way our past and present leaders have been running the country with their skewed and unproductive leadership style. In the words of Governor Obaseki: “Because of crude oil, we always believe that there will always be money. So, we run a very strange economy and strange Presidential system where people; the local government, the State governments, the Federal government, at the end of every month, they go and earn a salary.”
In response to that revelation by Obaseki, I wrote a piece, in which I stated that this is primarily because, as a country, we have allowed the discovery of crude, condensate and natural gas, and the huge money it brought, to make our political leaders at all levels of Government practically lazy, and not wanting to think on innovative ways to internally create wealth for the people. Even with the enormous oil wealth, our political leaders have over the years, been running governments that are wasteful, rather than using the oil/gas wealth to develop other sectors to boost and sustain the entire economy of the country. They have also maintained a culture of external borrowing to ‘sustain their waste.’ This has left us with a country that is seriously in debt, and the majority of its people regarded as the poorest in the world.
In case you are wondering how Ghana’s currency is now stronger than that of Nigeria. According to Wikipedia, “the economy of Ghana has a diverse and rich resource base, including the manufacturing and exportation of digital technology goods, automotive and ship construction and exportation, and the exportation of diverse and rich resources such as hydrocarbons and industrial minerals. These have given Ghana one of the highest GDP per capita in West Africa. Owing to a GDP rebasement, in 2011 Ghana became the fastest-growing economy in the world. The Ghanaian domestic economy in 2012 revolved around services, which accounted for 50% of GDP and employed 28% of the workforce. Besides the industrialization associated with minerals and oil, industrial development in Ghana remains basic, often associated with plastics (such as for chairs, plastic bags, razors, and pens). 53.6% of Ghana's workforce were employed in agriculture in 2013.
“Ghana embarked on a currency re-denomination exercise, from Cedi (?) to the new currency, the Ghana Cedi (GH?) in July 2007. The transfer rate is 1 Ghana Cedi for every 10,000 Cedis. Ghana is Africa's largest gold producer, after overtaking South Africa in 2019, and the second-largest cocoa producer (after Côte d'Ivoire). It is also rich in diamonds, manganese ore, bauxite, and oil. Ghana's industrial base is relatively advanced. Import-substitution industries include electronics manufacturing. Rlg Communications is the first indigenous African company to assemble laptops, desktops, and mobile phones, and is West Africa's biggest information and communications technology (ICT) and mobile phone manufacturing company.”
Here in Nigeria, it is apparent that Emefiele’s CBN has unofficially devalued the Nigerian Naira because the Naira hit N413.25 to the US Dollar recently. It is no news that Nigeria has not developed as it ought to, which is basically because the country’s past and present political leaders have been ‘comfortable’ with the fact that the country has remained a Consuming nation rather than a Productive nation.
Nigeria has always been a country that imports each of its consumable items from other countries. But the question is, what has the current administration done to reverse this trajectory? Have they not made it worse since they came in? Right now, the country is about importing fuel from the Republic of Niger. A product that we have in abundance in reserves and which we can actually be the ones exporting to other nations if only our political leaders would do the right thing. In other words, if the current President of Nigeria has refused to, or not willing to provide the ‘enabling environment’ for industries and the productive sector to strive, and for prospective investors to find attractive, then whose fault is it, should the Nigerian currency continue to depreciate at an alarming rate? Who should take responsibility for what is happening to the nation’s currency in the face of the US Dollar and Ghana Cedi?
As noted by Dr. Oni Gbolabo in a recent write-up: “A confused country (led by apparently visionless President), that produces almost nothing, will never meet up. Policies only control your currency, not the value of another countries currency against yours.”
Nigeria, as a country, as noted by Gbolado, is: “A country where over 500 industries died within 30 years… A country that exports all raw materials without adding value… A country that deliberately operates a banking system that gives loans to importers at the expense of local industries… A country that gives loans in billions to the Agric sector without Monitoring & Evaluation of such loan on how it gets to the real farmers…A country that spends more on few privileged politicians at the cost of the populace who are unemployed… A country that keeps paying NNPC staff N10 billion as salaries every month when a single drop of petrol was not processed… A country where it is difficult for investors to register businesses because of the government officials demanding bribes… A country where the cost of traveling for treatment abroad by officials will build world-class hospitals… A country where few people have access to the federal reserve and those few can get loans are not because of what they can produce but the connection they have… A country where we import what we produce because it's cheaper over there, should not complain about the depreciation of its Naira against other currencies.
“A country that has arable land, teaming idle youths and still complain of hunger… A country where free money flows can never control the inflow and outflow of forex… A country where banks are involved in round-tripping and inflated cost to siphon money is doomed…”
It is the duty of the Executive Governments - President and Governors, to provide the vision and direction of development by investing heavily in the provision of the necessary infrastructure and conducive atmosphere for industrial development. Where there are no reliable power supply, no security assurance due to the criminal activities of Boko Haram, Fulani herdsmen, kidnappers, armed robbers, etc., no good Federal and State roads, no good standard airports (like the oil city of Warri has been without a standard and functional airport), no functional Sea Port across the regions where they are meant to be and not just concentrated in Lagos; then one begins to wonder if really we have a Government in this country or not?
Zik Gbemre.
June 12, 2021
We Mobilize Others To Fight For Individual Causes As If Those Were Our Causes