By Mrs Abiola Daisy Igaga & Comrade Gifted Aghedo
We view the continuing collapse of the Naira in the foreign currency market as dangerous and ominous to our country. As patriotic citizens who are conscious of the regressive impact of this anomaly, it is imperative for us to forewarn the leadership of the country on the predictable catastrophic implication that this situation convey.
With the Naira presently exchanging for about N615 to the dollar, it is time to warn our leadership of the impeding danger this poses to national peace and development. We note that this government was voted into office with the Naira exchanging at about N140 to the dollar. We argue that the status of Nigeria as a dependent economy clearly encapsulate the state of the nation. In spite of the vast land potentials of the country and its favourable weather by geographical location, the country imports all categories of food to be able to feed its population. The country is technologically reclusive, unproductive, non-competitive and dependent.
We insist that the operation of dual window for foreign exchange currency market is a deliberate fraud sponsored and encouraged by government. While the Central Bank of Nigeria continuously insist that the Aboki foreign exchange market is not recognized, it is noted that over 80% of foreign currency transactions in Nigeria are facilitated through the Aboki market. It is horrible fraud for the leadership of our country to pretend that the Aboki market is not recognized.
We frown at the dual exchange rate windows being operated by the Central Bank of Nigeria. The exchange of the Naira at N415 to the dollar (Central Bank Rate) and the exchange of the Naira at N615 to the dollar at the black market (Aboki Market) opens a window of terrible fraud on the Nigerian economy. We inform that the withdrawal of two million dollars from the Central Bank of Nigeria traded at the Aboki market earns a profit of Four Hundred Million Naira. It is obvious that this window is attractive for exploitation by the comprador class who interface for the ruling elite. With a profit difference of N200 per dollar, the operation of the dual market regresses productivity as firms are likely going to find it more profitable to sell their earned dollars at the Central Bank at the Aboki market. This absurdity stifles industrial growth and sustains our economy as a mercantilist economy. Presently, the dollar can be assessed at the Central Bank window for N415 and sold at the Aboki window for N615.
In spite of the graveyard peace being experienced by the country, the situation of Nigeria will become unmanageable if the present trend of spiral inflation is not addressed by the government. We affirm that the present level of criminality in Nigeria is exacerbated by the level of poverty in the land. The worsened incapacity of the people to afford a meal a day is an enabling environment for kidnapping, recruitment by terrorist groups, internet fraud, advance fees fraud, robbery, ritual killings among others.
Also, the weak moral will of the law enforcement agencies in Nigeria largely derives from the high poverty index which is tied to the poor salaries and very weak foreign exchange rate of the country. It is appalling that the corruptive activities of the police and military in Nigeria has become brazen and unbridled public indulgence in disregard of any moral or legal injunction. Officers of the law who are supposed to be custodians of public morality openly and arrogantly insist on motorist complying with their instructions to pay bribes. A Nigerian who insists on not obliging the bribery request of the Nigerian police and army at checkpoints risks being shot and killed.
In other words, Nigerians are intimidated by policemen and soldiers to pay corruptive charges under a government that won election with anticorruption campaign slogans.
We urge the Governor of the Central Bank of Nigeria to resolve the contradiction of government’s inability to effectively control the exchange rate market. We inform that the rate that truly determine the functional pricing of the local consumers market is the supposed black-market rate which government label as not recognize. While government posit that it does not recognize the black-market rate, it actually stands out as the racketeer network exploited by its principals and compradors for shylock gains against the Nigerian people.
At a profit of nearly N200 to the dollar, an importer who have acquired $10m stands to profit Two Billion Naira by merely buying at the CBN window and selling at the Aboki window. To that effect, it is more profitable for an exporter to buy dollars at the official market and sell at the black market. While the Aboki window is allegedly not recognized by government, it is not declared illegal with deterrence policies by the government. It is an open market noticed and freely patronized by all, yet declared as unrecognized by government. This is the component of the deception and fraud deliberately orchestrated by the Nigerian government.
We inform that Nigeria cannot continue as a country that survive itself on deception. Government must be realistic and tell itself and Nigerians the truth. Guided by the moral prodding of the truth, the country might be able to recover and reverse its present degeneration. Achieving an enabling exchange rate is central to subjectively curtailing the present dangerous inflationary trend in the country. This requires an exchange rate that is clearly below the red line.
The above is a press statement of the Conference of Non-Governmental Organisations, CONGOs Edo State.
