Showing posts from January, 2016


  There was a time in the biblical Israel when money was said to have failed . At that time, I believe there was famine for about three years because there was no rain. People had money but there was nothing to buy. It got so bad that women were eating their Children in turns and it was actually when the King reigning at that time was called to settle a quarrel between two women, because one of them reneged on the agreement of surrendering her own Child for cooking, after she had participated in eating the other woman's son that he really became acutely aware of how things were. Thereafter he went in search of the prophet who had shut down Heaven, prohibiting it from sending rain .   Since after the Nigeria-Biafra which was fought partly because of oil, Nigeria has lived on Crude oil and it's associated gas. In the 70s following the Middle East crisis, prices of oil jumped and Nigeria got high on Petrodollar. That was when as alleged Gowon made the famous declaration


  Last week, I was surprised that many Nigerians were shocked that the US dollar exchanged for over 300 Naira. Our Senators seemed to be in greater shock than many, no wonder they have summoned the CBN Governor to appear in their chamber this week to explain why the Naira is being pummeled in the parallel market which as I said last week is the true foreign exchange market.    O-level Economics taught me that the price of every product or commodity is fixed at the point where supply intersects with demand. If supply remains constant while demand increases, price goes up and when supply dips in the presence of high demand, the price goes further up. And that's why I am surprised that any body is asking why the Naira is losing value rapidly, competing to join the league of Italian Lira, the Greek Drachma, the old Ghanaian Cedi, the  Gambian Dalasi or the old Panya money. For a while now, I believe it started when Prof Chukwuma Soludo was CBN governor and intensified when Sanu


In this column in the last two weeks, I have looked at the Economy and concluded that 2016 will be a tough year. I will not deserve any awards for saying so because many other commentators and analysts have come to  similar conclusions. But if an award must be given, then President Muhammadu Buhari( PMB) is the undisputed winner. First, since he assumed office , he has been consistent in telling Nigerians that our economy was in bad shape and that difficulties lay ahead. This call has intensified by the day rather than abate. In his recent media chat he again harped on the subject of the difficult economy that lies ahead.   The only award that has no obvious winner is that which will go to whoever tells us exactly what must be done to heal the economy and restore it to sanity as quickly as possible. All kinds of ideas are floating in the air and some tentative and experimental measures are being taken, but so far nothing has changed. Or rather nothing has changed for the better.


 We are thankful to God, that we survived 2015. It was indeed a monumental year for our Country. It was largely a year of mixed blessings. As I opined last week, we had a positive political outcome with the unexpectedly peaceful transfer of power from PDP to APC at the Federal level but we ended the year with miserable economic outcomes, fueled by the precipitous decline in oil prices and the restrictive measures taken by the government to contain the fall out. Every body that I met and every Industry that I reviewed closed the year hoping for a better 2016. I therefore wish to join all these people to express my wish for Nigeria in 2016. ECONOMY  First, I wish that the 2016 Federal budget is approved speedily. Though the 2015 budget has been extended to the 31st of March, 2016, it is clear that 2015 budget has no answer to the prevailing economic challenges. Perhaps the only thing left in the 2015 budget is the supplementary budget aimed at ensuring payment of Salaries and petrol