I listened with rapt attention to the new financial policy been proposed by the Central Bank of Nigeria. I was impressed that someone is proactive enough to want to experiment with such a concept as cutting down the number of Zeros on the Naira by two. In contrast to the Zimbabwean record of having the highest currency denomination in the world, the redenomination policy of the CBN is expected to strengthen the Nigerian Naira.
It is a wonderful idea to have the 20Naira note as highest currency but I just wonder how we would pay for goods and services that run into millions of naira. How much would we be permit as the highest amount to possess or carry about as ordinary citizens? How much bags of “GMGs” will an average politician be allowed to have in his trunk? Agreed that the currency will be stronger but do we have workable policies in place to migrate us into a cashless economy? Are the banks ready to make the necessary investment to support such infrastructure that is able to support the opportunities that is been thrown on their laps? If recapitalization has caused so much money to be in the coffers of our banks, how much more will this new policy create a challenge for the surge in growth we foresee?
It is not enough to plan economic growth and cause excitement to keen watchers and believers alike, it is also more important to work with other segment of the economy to strategically position them for the challenge ahead. As a lay man, I do know that the energy sector is a core sector that needs proactive fixing. Until things are put right in this important sector, financial policies may be frustrated. The banking sector is not enough to drive the economy. Electricity and other infrastructure that aid local production need to be improved upon and made to function effectively. A situation which still makes Nigeria an import dependent economy will only lead us back to where we want to run away from. We do have the raw materials and personnel to satisfy local production but the cost of running a cottage industry is so high that most people have abandoned such ventures all together. I still believe that if Nigeria is able to improve on the power situation and have constant energy supply, more than 75% of the problem will be addressed. Attitudes of people and the fight against corruption added to the course will lead Nigeria to the promise land earlier than postulated.
Despite the skepticisms of the past about the workability of the Nigeria state and the state of insecurity in the Niger Delta, a clear roadmap, sincere and concerted efforts are essential ingredients that will prove that Nigeria can solve its own problem. I do not doubt the input of international donor agencies in the development or otherwise of the Nigeria economy, but I am sure that Nigeria can also rise and grow its own policies in line with realistic and positive projections. With good intentions, governments in the past have bought already made quick fix solutions instead of observing local trends and prioritizing specific areas of growth. While those packaged solutions might have worked in some sectors, it is also obvious that a number of them have generated a lot of wastes and their residue of debt will be paid by generations yet unborn. I think it is time to act and the time is now. Redenomination or decimalization, at least someone is thinking of economic growth and he deserves to be supported. Prof. Soludo, its your game, you can be sure your fans are hailing!
It is a wonderful idea to have the 20Naira note as highest currency but I just wonder how we would pay for goods and services that run into millions of naira. How much would we be permit as the highest amount to possess or carry about as ordinary citizens? How much bags of “GMGs” will an average politician be allowed to have in his trunk? Agreed that the currency will be stronger but do we have workable policies in place to migrate us into a cashless economy? Are the banks ready to make the necessary investment to support such infrastructure that is able to support the opportunities that is been thrown on their laps? If recapitalization has caused so much money to be in the coffers of our banks, how much more will this new policy create a challenge for the surge in growth we foresee?
It is not enough to plan economic growth and cause excitement to keen watchers and believers alike, it is also more important to work with other segment of the economy to strategically position them for the challenge ahead. As a lay man, I do know that the energy sector is a core sector that needs proactive fixing. Until things are put right in this important sector, financial policies may be frustrated. The banking sector is not enough to drive the economy. Electricity and other infrastructure that aid local production need to be improved upon and made to function effectively. A situation which still makes Nigeria an import dependent economy will only lead us back to where we want to run away from. We do have the raw materials and personnel to satisfy local production but the cost of running a cottage industry is so high that most people have abandoned such ventures all together. I still believe that if Nigeria is able to improve on the power situation and have constant energy supply, more than 75% of the problem will be addressed. Attitudes of people and the fight against corruption added to the course will lead Nigeria to the promise land earlier than postulated.
Despite the skepticisms of the past about the workability of the Nigeria state and the state of insecurity in the Niger Delta, a clear roadmap, sincere and concerted efforts are essential ingredients that will prove that Nigeria can solve its own problem. I do not doubt the input of international donor agencies in the development or otherwise of the Nigeria economy, but I am sure that Nigeria can also rise and grow its own policies in line with realistic and positive projections. With good intentions, governments in the past have bought already made quick fix solutions instead of observing local trends and prioritizing specific areas of growth. While those packaged solutions might have worked in some sectors, it is also obvious that a number of them have generated a lot of wastes and their residue of debt will be paid by generations yet unborn. I think it is time to act and the time is now. Redenomination or decimalization, at least someone is thinking of economic growth and he deserves to be supported. Prof. Soludo, its your game, you can be sure your fans are hailing!
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