By Zik Gbemre
We have reiterated severally that there is no magic on how to address the fall of the Nigerian Naira, if the nation does not produce anything for global consumption. Nigeria is best known as a ‘consumer nation’ that is producing next to nothing for export. Apart from our raw crude oil and natural gas, which we export at a cheaper global price index and then import refined petroleum products and other items at a higher cost, Nigeria cannot boast of anything else. This was the narrative the present Muhammadu Buhari led administration is trying to change, but it has become evident that some persons with selfish interests do not want that to happen, hence they are bent on frustrating the present Government from different angles.
This was the same revelation that was made some time ago by the Minister of Agriculture, Dr. Audu Ogbe, and we were amazed at the level this problem has been eating deep into the fabric of this nation. One of the points noted by Ogbe, tracing our present problems from a historical perspective, was the fact that the tragedy of Nigeria began in 1986, when the nation was forced by the then military regime of Ibrahim Babaginda, to the Structural Adjustment Program (SAP). It was when the nation was persuaded to devalue our Naira currency every week, and this continued for 32 years. But before then, there was a time when the value of the Naira was $1.50cent. The Nigerian Naira was almost one (1) Pounds Sterling. But they came and persuaded some supposed brilliant men from Harvard at the World Bank, that weekly devaluation was wonderful. And we had 32years of our Naira being devalued, and at a point it hit $527. Yet, they were still telling us that the Naira was still overvalued.
That of course brought poverty, misery and hardship upon Nigerians over the years. The interest rate went to 30%. Nobody could build a factory, engage in commercial farming, produce anything to create jobs. As a result, we were made an import dependent nation. But every time we ship in loads of rice for instance, we also bring in ship loads of unemployment because we are transferring our wealth as a nation, to sustain other economies. Somehow, Nigerians did not notice all of this, so we became a nation of importers. We even import toothpicks, and each year it cost us $18m importing that. Tomatoe paste cost us $400m yearly. Whereas, a basket of Tomatoes could go as low as N2, 000. But the farmers are losing money because the processors do not have enough money to set up factories. If one is going to do tomatoe paste, it’s full grade stainless steel because one cannot just use anything to produce tomatoes paste, else one will be putting poison in people’s stomach.
According to Ogbe, thanks to this administration, two factories have started off, and in few months, the importation of tomatoe paste will stop. Ogbe noted that, but when this is done, you make enemies. Even the rice the present Government is trying to reduce its importation, they have enemies – people who can kill if they have the chance, all because this administration is ‘spoiling’ their importation business. In the words of Ogbe, “let no one take it lightly. These guys have seized the economy. They have taken us hostage, and they have no intention of giving up because this is a huge market, a very sweet market for them, as they have taken control.
“This Buhari regime is unpopular in part because it is trying to cut down imports, and transfer the wealth to another people (The Nigerian masses).” Ogbe noted how he has been on this business for about 40years, so he knows what he is talking about. We import virtually every essentials into this country. From milk, sugar, toothpicks, toothpaste, handkerchief, pencils, etc. To cure Nigerians from that malady will take a while. It will take a strong Government that will not compromise. But the enemies of the nation are not happy that the Buhari Administration is cutting down these imports, because when the government cuts down imports, they lose money there. Hence, you see them write all sorts of publications like: the Buhari government is telling lies, we are not growing rice, all trying to demoralize the local farmers, and make sure that the economy fails. That has been the story of importation in this country.
Ogbe mentioned a story he read in the national newspaper, of the French (Champaign) Ambassador in Nigeria, who said Nigerians love life. That we are the biggest consumer of Champaign on planet earth, more than the French who make Champaign. There are parties you attend where what they drink is only Champaign. Of course the individual is free to spend his money, but his money comes from Nigeria’s common wealth.
So, on imports, it will take a while for us to get used to local goods, and it is important for us to accept that we should consume what we produce, and produce what we ought to consume. But we have to take stern measures to cut down on imports because the young boys and girls who have no jobs today, are not going to allow us to carry on our lives at their expense. They need jobs. They are graduates who are now back home to begin another round of childhood because there are no factories to employ them. And the Government Ministries cannot take anymore. But somebody is making sure this Government fails, when they are fighting to produce that hope.
It is really sad that aside from crude oil and gas exports, there is nothing much Nigeria is known for. Even with this, we are yet to tap its full potentials as a nation. In fact, there are over 6000 items that can be produced from crude oil and natural gas, but all are produced by others, while Nigeria is only good at importing them into the country at higher prices. How would a country that is producing nothing get a strong currency? It is not possible. That is why our Naira is weak. No economic magic policy that will address this if those Nigerians who are fighting to prevent us from being a producing nation, are put out of business and out of the system.
Zik Gbemre.
National Coordinator
Niger Delta Peace Coalition (NDPC)
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