OPINION
Taking the Right Steps to Save Naira from Further Decline
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By Tony Obiechina
Against the backdrop of continued fall of the Naira, the Office of the National Security Adviser (ONSA) had recently announced that it would join forces with the Central Bank of Nigeria (CBN) to clamp down on currency speculators and economic saboteurs.
There is no doubting the fact that the increasing scarcity of the dollar and its growing demand in Nigeria remain the principal reasons for the troubled Naira.
Infact as at Friday, the Naira’s summersaults reached an unimaginable low level of N2000/$1, even as analysts say that all is not well with the Naira.
According to financial experts the unwholesome activities by manipulators who operate through several digital channels are remotely contributing to naira’s weakness and even inflation, resulting to rising food costs and negating financial stability.
One of such unwholesome activities is the crypto environment that is largely not regulated by the Securities and Exchange Commission(SEC) and the Central Bank of Nigeria(CBN).
In other climes, especially the United States, there are regulatory frameworks for crypto environment and violations of any extant regulations attract severe sanctions.
Of particular note is Binance which has digital tentacles with large players here in Nigeria. The regulations inherent in the United States crypto space was enough to deal with violations by Binance and its management.
According to the US Justice department, Binance admitted it engaged in Anti-Money Laundering, Unlicensed Money Transmitting, and Sanctions Violations in Largest Corporate Resolution to Include Criminal Charges for its Executive.
The justice department further said “Binance Holdings Limited (Binance), the entity that operates the world’s largest cryptocurrency exchange, Binance.com, pleaded guilty and has agreed to pay over $4 billion to resolve the Justice Department’s investigation into violations related to the Bank Secrecy Act (BSA), failure to register as a money transmitting business, and the International Emergency Economic Powers Act (IEEPA).
The company’s founder and chief executive officer (CEO), Changpeng Zhao, a Canadian national, also pleaded guilty to failing to maintain an effective anti-money laundering (AML) program, in violation of the BSA and has resigned as CEO of Binance.
In Nigeria, the concern now is how Binance and other digital assets platforms are serving as window for peer-to-peer (P2P) transactions giving opportunity to users to showcase interest to sell or buy currencies of their choice.
It is reported that Nigeria is currently the biggest P2P market in the world, which came about after the Central Bank of Nigeria banned institutions from buying and selling crypto in 2021. However, a circular issued to banks in December 2023 lifted the crypto ban on Nigerian banks facilitating cryptocurrency transactions.
Many Nigerians dealing with foreign exchange struggle to conduct transactions through traditional banking and Bureau de Change channels. This is due to significantly higher fees for transferring foreign currency within the banking system than in the crypto market, making P2P transfers more attractive.
Consequently, in this unregulated market, individuals or groups place large buy or sell orders on the platform with no plans to execute them.
This development has therefore created a false illusion of high demand , influencing others to buy or sell at manipulated prices. This deceptive practice, targets unsuspecting investors, leaving them with significant financial losses and as in the case of naira.
However government crack down on the parallel markets has started yielding positive results as noticed in the reaction of the Association of Bureau De’Change Operators of Nigeria (ABCON). Its President, Mr. Aminu Gwadabe has commended the management of the CBN for the action.
He said, “for the past two and a half years this is the first time we have seen engaging and a listening CBN. We have seen how to collaborate to ensure that we get a solution on how we can solve the problem because it is a national crisis that’s where we are now.
“Two, we have witnessed a lot of raids and arrests I want to draw a caveat. Unfortunately there is stigmatisation and criminalisation of the sector due to lack of understanding even with the security agencies there is lack of clarification between who is licensed and who is not. So the raids that is going on, as a licensed Bureau De’Change a regulatory entity.
“For us we are licensed and regulated and as a licensed Bureau De’Change there are criteria, you must have an office, you must render returns you must comply with necessary regulations. What is happening is not targeted at licensed Bureau De’Change but the operator of FX street trading. For us we are against any street trading and we support any actions that will remove street trading. It affects me also, I have an office but my clients cannot come to my office because of the menace of street traders”.
“I want to congratulate the government, the CBN if it can be sanitize. We support any sanitization that can remove street trading. We have all seen it, there is no place on earth that you can go and see rampant street trading of FX so we’re in support of it”.
However, the recent pronouncement from the presidency in respect of how naira can be strengthened is a welcome development going by a statement from the office of the National Security Adviser(ONSA) it spoke of its synergy with the CBN to sanitise the foreign exchange market.
Similarly, Special Adviser to President Bola Tinubu on information and strategy, Mr Bayo Onanuga said Binance and other crypto platforms should be banned from operating in Nigeria.
In an X post on Wednesday, he also said foreign exchange (FX) aggregator, abokiFX, should be banned again.Onanuga made the statement while reacting to a comment by Mikael C. Bernard, an X user, who shared posts on cryptocurrency and FX rates.
The presidential aide said Bernard stated in an X post that “Naira is going to zero”.
Onanuga’s statement is coming amid the continuous depreciation of the naira, which fell to N2000/$ at the parallel section of the FX market on February 23, 2024.
In his post, the special adviser said Binance is “blatantly setting exchange rate for Nigeria,” and hijacking the role of the Central Bank of Nigeria (CBN).
He said the cryptocurrency trading platform is facing restrictions in multiple jurisdictions, such as the United States, Singapore, Canada and the United Kingdom.
It would be recalled that previous CBN guidelines, while aiming to curb banking involvement with crypto, leave the P2P space largely unsupervised and country is at the receiving end.
The vacuum created by non-regulation has allowed manipulative tendencies in P2P market, making the integrity of the market to nosedive, while eroding investor confidence.
Nigeria, and indeed the regulatory authorities should consider a review of the existing guidelines to check this menace, or probably liquidate their operations in the country as their activities pose a great risk to national security.
OPINION
Obaseki’s Failure and Urgent Need for Good Governance in Edo State
![Mr Godwin Obaseki](https://dailyasset.ng/wp-content/uploads/2019/07/Mr-Godwin-Obaseki.jpg)
By Augustine Osayande
As the September 21 gubernatorial election approaches, I feel compelled to address the urgent issue of governance in Edo State. My concerns have been intensified by recent news: “Benin Group Issues Ultimatum to Obaseki, Demands Apology to Oba of Benin” and “200 Members of Governor Obaseki’s Family Defect to APC, Endorse Okpebholo for Governor.
” These reports highlight the growing discontent with Governor Godwin Obaseki’s administration.While poor governance is not unique to Edo State, Governor Godwin Obaseki’s administration has been particularly disappointing. His tenure has been characterized by unfulfilled promises and significant lapses in leadership, positioning him as a notable example of ineffective governance.
Compared to his peers, his administration’s failures are especially stark, making him one of the most prominent figures among underperforming governors.It is not surprising that the most recent damning verdict showing the woeful performance of Governor Godwin Obaseki for the past eight years is coming from his immediate family. According to the news report, the Agho Obaseki’s family in Edo State announced their decision to abandon the Peoples Democratic Party (PDP) and throw their support behind the All-Progressives Congress (APC) candidate, Senator Monday Okpebholo, for the upcoming gubernatorial election.
Osaro Obaseki, a prominent figure within the Obaseki clan, revealed the reasons behind their dramatic decampment. “We have stood by our brother, Governor Godwin Obaseki, since 2016. However, his administration has failed to deliver on the promises made to the people of Edo, and we can no longer support him, especially when he intends to bring and foist his replica on us,” Osaro stated, expressing the family’s disillusionment with the current state of affairs in the state.
The Obaseki family, which numbers over 200 members, voiced their dissatisfaction with the perceived neglect of crucial infrastructure and the lack of respect shown to traditional institutions, including the Oba of Benin. “We believe that Senator Monday Okpebholo has the vision and commitment to turn things around for the better. His track record and dedication to the people of Edo have convinced us that he is the right leader to guide our state forward,” Osaro Obaseki added.
Again, just before his family verdict, concerned People of Benin Nation (CPBN) issued a seven-day ultimatum to Obaseki, demanding a public apology to the Oba of Benin, Omo N’Oba N’Edo Uku Akpolokpolo, Oba Ewuare II, for what the group described as “sacrilegious disrespect” to the Benin throne.
In a press statement issued on Tuesday by Prof. Amen Uhunmwangho, and co-signed by prominent figures, including Dr. Jacob Abusomwan, Barr. Osarenkhoe, Leftist Agho Omobude, Mr. Iyamu Osaro Culture, Comrade Eseosa Omoregbee, Chief Omuemu Etinosa, Chief Friday Omoragbon, and Rev. Osamuyimen Isibor, the group demanded that the apology be published in at least three national newspapers.
The CPBN, representing a wide, cross-section of Edo State residents, also outlined several other demands, including an immediate halt to the construction of a museum intended for repatriated Benin artefacts, which they asserted was being undertaken without the Oba’s consent.
They also called for the withdrawal of lawsuits allegedly filed by certain Enigie against the Oba, the reallocation of lands whose Certificates of Occupancy were revoked by the governor, and the return of communal land they claimed were illegally acquired by the state government.
The group is advocating the payment of salaries and allowances to 14 Edo State House of Assembly members who have been prevented from taking their seats for the past four years, in what they described as unconstitutional actions by the state government. The CPBN’s demands reflect a growing discontent with the governor’s actions, which the group believed had undermined the Benin Kingdom and its people.
In evaluating the numerous controversies surrounding Governor Godwin Obaseki, it is essential to start with his actions that contradict the very principles that facilitated his rise to the governorship of Edo State. Democracy, widely regarded as the most effective form of governance, derives its legitimacy from the people, with the legislature serving as its essential safeguard. The constitutionally enshrined principles of checks and balances require the three branches of government to function independently and harmoniously for the benefit of the populace.
Governor Obaseki, in a troubling display of disregard for democratic norms, obstructed the inauguration of 14 duly elected members of the Edo State House of Assembly in 2019. This act, which remains a documented breach of democratic process, significantly harmed the people of Benin, as 10 of the excluded members represented the Edo South Senatorial District, including the elected representative of the governor’s own Oredo East Constituency, Hon. Chris Okaeben. Consequently, the Benins were reduced to a minority in the House, with only four members. This undemocratic exclusion deprived millions of Edo citizens of representation for four years, during which governance in the state was marked by an unchecked and unbalanced consolidation of power by the governor.
This pattern of governance has continued, with two members of the Edo State House of Assembly—Hon. Emankhu Addeh and Hon. Ojeme Donald Okogbe—recently suspended from the House without due process, further depriving their constituencies of effective representation. Such acts of oppression, exclusion, and intimidation have marred Edo’s recent history.
Furthermore, Governor Obaseki has repeatedly undermined the progress of prominent Benin citizens by allegedly sponsoring protests against their appointments to significant positions, such as the nomination of His Excellency, Rt. Hon. Pius Odubu, and Chief Victor Ekhator for leadership roles within the Niger Delta Development Commission (NDDC) in 2019. This, along with other actions, reflects a pattern of hindering opportunities that could have brought substantial development to Edo State.
The abandonment and destruction of critical state infrastructure, such as the Benin storm water project and the Ekehuan road project, further highlight the administration’s failure to prioritize the welfare of Edo citizens. Governor Obaseki has also been accused of demolishing long-standing public institutions like the specialist hospital on Sapele Road and the Institute of Continuing Education, replacing them with private ventures.
In the lead-up to the 2020 gubernatorial election, the governor’s alleged indifference to assassination attempts on political opponents and his persistent conflicts with the Benin traditional institution, particularly his attempts to interfere with the repatriation of Benin artefacts, have further estranged him from the people he is supposed to serve.
The governor’s actions have also included the demolition of property in Oke-Oroma Community, despite a subsisting court order, and the allocation of vast forest reserves to private entities, often at the expense of local communities and without transparent benefits to the state.
Governor Obaseki’s administration has been marked by what many perceive as a series of high-handed actions against individuals and communities, including the revocation of land titles and the demolition of property belonging to prominent citizens, often on grounds seen as politically motivated.
In conclusion, the people of Edo State are urged to critically assess the character of those who seek to lead them, especially as the next gubernatorial election approaches. It is vital to resist choices that could lead to further hardship and regression for the state. The resilience of the Edo people and their commitment to democratic principles should guide their decisions in this crucial period.
Augustine Osayande, PhD contributed this piece from Abuja via austinelande@yahoo.com
OPINION
Joining Hands to Build a China-Nigeria Community with a Shared Future
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By Yu Dunhai
On 10 August, I departed from Beijing and landed in Abuja, from a city near the western side of the Pacific, to a capital adjacent to the eastern side of the Atlantic, and started my journey as the 15th Chinese Ambassador to Nigeria, with a lofty mission and great excitement in my heart.
Upon arrival at the Nnamdi Azikiwe International Airport, I deeply felt the hospitality of the Nigerian people and their friendship with China, which boosted my confidence in my tenure in the coming years.There is much common ground between China and Nigeria, and between our two peoples. China is the second largest economy and one of the most populous countries in the world, while Nigeria is a major economy and the most populous country in Africa.
Both of our countries are blessed with vast lands, ancient histories, rich natural resources, multiple ethnic nationalities and splendid cultures. Both the Chinese and Nigerian people cherish peace and yearn for development. They are both hospitable people, and treat each other as brothers.Meanwhile, the 1st of October is China’s National Day and Nigeria’s Independence Day, respectively. Although separated by oceans, the two countries and two peoples are closely linked by these similarities. Therefore, since the establishment of diplomatic ties on 10 February, 1971, our relations have stood the test of changes in the international landscape and gone from strength to strength. Furthermore, over the years China-Nigeria relations have stood at the forefront of China-Africa relations.
In 2018, our two countries signed a Memorandum of Understanding for cooperation on the Belt and Road Initiative (BRI), and Nigeria joined the Belt and Road family. In October, 2023, Vice President Shettima attended the Third Belt and Road Forum for International Cooperation in China on behalf of President Tinubu, which was a complete success. In June this year, Foreign Minister Yusuf Tuggar visited China and held talks with HE Wang Yi, member of the Political Bureau of the Central Committee of the Communist Party of China and minister of Foreign Affairs.
The two foreign ministers co-chaired the first plenary session of the China-Nigeria Intergovernmental Committee, which further promoted the political mutual trust and mutually beneficial cooperation between our two countries.
Upon arrival in Abuja, I witnessed its modern international airport that was built by a Chinese enterprise. The airport is just one of the numerous flagship projects constructed by Chinese companies through China-Nigeria cooperation, which include the Lekki Deep Sea Port, the Abuja Metro Line, the Lagos Rail Mass Transit, the Zungeru Hydropower Plant, the National Data Centre in Kano, and the Lekki and Ogun industrial parks, etc. The projects stand as a testament to the fruitful results of China-Nigeria practical cooperation and the friendship between our two peoples.
Nigeria is China’s third largest trading partner in Africa, with bilateral trade amounting to $22.56 billion in 2023. The country is also China’s second largest export market and a major investment destination in Africa, and the number of projects contracted by China in Nigeria ranks first in Africa. Featuring enormous potential and a bright future, the practical cooperation between China and Nigeria serves as a role model of high quality Belt and Road Cooperation.
People-to-people friendship holds the key to state-to-state relations. After the COVID-19 pandemic, we have developed closer cultural exchanges. We have established cultural centres in each other’s capital and Chinese and Nigerian universities have co-founded two Confucius Institutes in Nigeria, and Nigerian people’s enthusiasm for learning the Chinese language keeps on growing.
The number of Nigerian students learning in China has reached its peak at more than 7,500, and a large number of Nigerian citizens are doing business in China. We have co-hosted with the Nigerian side a series of cultural events such as the “Happy Chinese New Year” Temple Fair, the Chinese Film Festival and the “Chinese Bridge”– the Chinese Proficiency Competition, which have all largely brought our hearts closer. I am expecting more Nigerian friends to pay visits to China and act as the envoys connecting China-Nigeria friendship.
China and Africa enjoy a long-standing friendship. In the 1960s and 1970s, despite its economic hardship, China built the world-renowned Tazara Railway for its African brothers. In 2013, President Xi Jinping put forward the principles of sincerity, real results, amity and good faith for China’s Africa policy. Over the past decades, China and its African friends have stood together in weal and woe in the face of changes in the international landscape and joined hands to meet challenges.
Taking into consideration African countries’ yearn for modernisation, President Xi Jinping proposed, in 2023, the Initiative on Supporting Africa’s Industrialisation, the Plan for China Supporting Africa’s Agricultural Modernisation, and the Plan for China-Africa Cooperation on Talent Development respectively, accelerating Africa’s integration and modernisation.
In September this year, the Summit of the Forum on China-Africa Cooperation (FOCAC) will be held in Beijing, during which Chinese and African leaders will jointly plan future China-Africa development, after the previous summit held six years ago. Currently we are actively preparing for President Tinubu’s state visit to China and his attendance of the Summit in September, along with our Nigerian colleagues.
I am confident that with our joint efforts, President Tinubu’s visit is certain to deepen our cooperation in such fields as industry, agriculture, infrastructure, financing, poverty reduction, technological innovation, digital development and the blue economy, upgrading and expanding the depth and width of China-Nigeria cooperation, and bringing more benefits to our two peoples. President Tinubu, as the chairman of the Economic Community of West African States (ECOWAS), will also discuss with Chinese and African leaders about China-Africa cooperation and development.
In July this year, the third plenary session of the 20th Communist Party of China Central Committee was successfully held, with the adoption of an important resolution which included more than 300 important reform measures. The measures are aimed at further deepening reform comprehensively and advancing Chinese modernisation. China strives for modernisation through a path of peaceful development.
The country will leverage the strengths of its enormous market and enhance the capacity to open up by expanding international cooperation. China’s development plays an important role for the stability and prosperity of a multi-polar world. We will also continue to support Nigeria’s social and economic development with concrete actions, and share our development benefits with the country.
When I passed by the majestic Zuma Rock, it reminded me of the Great Wall of China. Both of them represent the national character of tenacity possessed by our two peoples and symbolise our friendship. I look forward to meeting more Nigerian friends from government bodies, the National Assembly, the business community, the media, think-tanks, etc., visiting different states in Nigeria, and gaining more insights into its history, ethnic cultures and local customs.
With the support of my like-minded Nigerian friends, I will make my utmost efforts to contribute to the resilient relations between China and Nigeria, to the profound friendship between our two peoples, and to the building of a high-level China-Nigeria community with a shared future.Dunhai is the Ambassador of the Peoples’ Republic of China to Nigeria.
OPINION
The Olympics and Lessons for Nigeria
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By Yahaya Etila
The commentaries on the just concluded 2024 Olympics are well in place given the quantum of resources expended by the Nigerian contingent. On the medals table, Nigeria sat comfortably at the bottom with no medal, marking it as one of the country’s worst Olympic outings in recent history.
However, as embarrassing as the outing was, there are lessons to learn about planning and strategy and how they are necessary in our quest for sustainable growth and development.
My verdict about the performance of Team Nigeria is that we left things to chance because one year is not enough to prepare and participate effectively in such a global sporting event. That would be wishful thinking.The Olympic Games are held every four years. And that gives ample time for preparations. But the truth remains that you can’t give what you don’t have. It is not about participation alone. It is about a culture that is lacking in the country. We always wait till the last minute before we make attempts at preparations. This has been our culture and one wasn’t surprised with the performance of the Nigerian contingent.
There was no magic to conjure to mitigate the lack of preparation. Other countries prepared for the event for several years and it paid off as amply demonstrated on the medals chart. It is akin to when preparation meets opportunity, success becomes inevitable.
I like the position of the Minister of Sports, John Owan Enoh. He was blunt about the outing of the Nigerian team. One cannot but salute his presence of mind to admit that the country’s performance at the Olympics “fell short of expectations”.
In his words, “When I assumed office as the Minister of Sports Development in August 2023, I was confronted with the task of executing four international competitions namely the AFCON, the African Games, the Olympic and Paralympic Games in a matter of a few months. I was also reminded that the Olympic Games is the world’s supreme sports competition, and countries require at least four years to prepare for it. I held extensive discussions with the management staff of the Ministry and got to know that preparations for the Olympics, which was less than a year away, had not started.”
This is the point one wishes to bring to the fore. The country was not prepared for global events. What happened? This question should be channelled to the former Minister of Sports Development in the previous administration. At the 2020 Olympics in Tokyo, Team Nigeria won only two medals, a silver and a bronze, in wrestling and long jump.
Blessing Oborududu is currently ranked as the world’s number two woman wrestler and the first to win an Olympic medal representing Nigeria at the 2020 Olympics. She is also a 12-time African champion from 2010 to 2023. This time around she crashed out in the semi-finals, despite expectations for her to excel and make us all proud. In a letter she wrote to Nigerians after the Olympics, she stated that she was medically ruled out of the Games, but she fought to represent the country in Paris. What does this tell us? This is an example of when we leave things to chance and expect miracles to happen.
Ese Brume won a bronze medal in the long jump at the last Olympics. She is the current Commonwealth champion and a three-time African senior champion in the Long Jump. She finished in fifth position and confessed that she was hampered by an injury. She too, admitted that she competed with an injury. In her words, “Looking back to where I’m coming from, I didn’t compete much this year because of injuries.
Even up to today, I also competed with an injury, but I’m glad that I made it this far. I’m happy with myself and thankful to God.” This again is leaving things to chance and expecting a miracle to happen. Tobi Amusan also crashed out of the Women’s 100m Hurdles at the semi-finals. Amusan is the current world record holder in the 100-metre hurdles.
She is also the current Commonwealth and African champion in the 100-meter hurdles. At the 2023 World Championships, she finished sixth in the final. This is also indicative that she probably nursed an injury and still participated in the 2024 Olympics. I stand to be corrected.
I used the three examples for a reason. The trio of established athletes are record holders. However, a critical analysis would reveal that the trio sustained their tempo solely through their efforts with little or no support from the sports federations. I will try to explain. Daniel Igali became president of the Nigerian Wrestling Federation in 2020, a position he has occupied to date.
As an experienced wrestler, he should know and do better in preparing our wrestlers for such an important event. The confession by Blessing Oborududu suggests where the blame should go. Tonobok Okowa has been the president of the Athletics Federation of Nigeria, (AFN) since 2021. Who is Tonobok Okowa?
The much I could glean about him is that he is: “First Vice Chairman of Delta State Football Association; Chairman of Delta Force Football Club; Patron of Delta State (Football) Referees Council and Executive Chairman of Delta State Sports Commission. He was eventually consecrated President of the Athletics Federation of Nigeria. And we expect magic to happen?
Let’s take the clock back. The Minister of Sports Development in his statement about the short of expectations performance of Team Nigeria at the Olympics blamed the federations for prioritizing “qualification over preparations for the Olympic Games.
In his words “After the African Games, subsequent meetings were limited to the Federations that had bright chances of qualifying for the Olympics. Medal projections were made by all the Federations, although their athletes were still trying to qualify, which lasted until about June 2024.” We need to read between the lines of the minister’s statement to understand where the problem arises from. This is a systemic problem and those who have heaped blame on Senator Enoh the Minister of Sports Development need to rethink.
He is barely a year in office and I struggle to understand what magic he could have performed which would have translated to a good outing for the Nigerian contingent at the Olympics. I am glad the minister is blowing hot. I hope he matches his words with action.
We need to plan and strategize in all our endeavours. It is not enough to make projections without commensurate action. This has been the trend and explains why the recent outing of Team Nigeria at the concluded Olympics should not come as a surprise to Nigerians.
It is irrational to heap the blame on the minister of Sports Development. It is tantamount to putting the cart before the horse. I stated earlier that I liked the fact that he has taken responsibility for the uninspiring outing of the contingent in Paris. He didn’t mince his words.
This is an unacceptable performance. This much I agree, but with a caveat. The minister must begin the process of rejigging the various sporting federations to avoid the mistakes of the past that culminated in the embarrassing outing of Team Nigeria. The quote, when preparation meets opportunity, success becomes inevitable readily comes to mind. These are indeed lessons for the leadership class in Nigeria.
Etila, a development expert, wrote from Abuja.