OPINION
The Naira Abuse Palaver
By Dakuku Peterside
There is no disputation that naira abuse or more specifically the act of spraying money at social events has become an acceptable norm or cultural practice in Nigeria. Nigerians have a cultural affinity for lavish social gatherings. Many people regard these occasions as avenue for displaying social statuses and wealth.
Spraying naira notes, and other currency notes, at events progressively appear to be the ultimate way to flaunt one’s social standing.Even burials that are supposed to be sober moments have been turned into considerable fanfare. This has created a new industry of mint note trading and events management. All of these constitute the social infrastructure of naira abuse.
A new dimension to this abuse has been the arrival to the scene of the dodgy nouveau rich. Society has labelled these folks through all sorts of nomenclatures, such as: Yahoo Yahoo, Yahoo Plus, and 419.Nigeria has since recognised the dangers of naira abuse but that is not the focus of this piece. The government has made rules and laws to check it and provided enlightenment campaigns to educate people on the ill. The Central Bank of Nigeria (CBN) gave naira abuse as one of the reasons why it is pushing for digital-based financial transactions. Naira abuse, like its ancestor – the social epidemic of corruption, has remained stubborn and refused to go away.
There is, however, ambiguity about what constitutes naira abuse. Section 21 of the Central Bank of Nigeria Act of 2007 clearly defines naira abuse and prescribes various punishments to deter citizens from engaging in it. The abuse includes: spraying banknotes at events; writing on banknotes; stapling banknotes; tearing banknotes; dancing or stumping on naira notes; defacing bank notes with substances or ink or oil; selling banknotes; the mutilation of naira notes; and creating money bouquets.
However, there has been a pervasive laxity on the enforcement of the law. It is generally though that the laws against naira abuse are either symbolic or desuetude, because no one is held accountable for it; everyone gets away with it.
The social phenomena of naira abuse, especially the spraying of money, have become epidemic in Nigeria. Lately, the abuse is of significant concern. We have exported it to many parts of the world, and social media is replete with evidence of this in weddings and other social events attended by Nigerians in different parts of the world.
Malcolm Gladwell’s book, The Tipping Point: How Little Things Can Make a Big Difference explores the idea that social phenomena, like trends and epidemics, often reach a tipping point where they suddenly become widespread. He identifies three key factors that contribute to this tipping point: the Law of the Few (the idea that a small number of people have a disproportionate influence), the Stickiness Factor (how messages or ideas stick in the minds of people), and the Power of Context (how the environment influences behaviour).
Through engaging anecdotes and research, Gladwell illustrates how understanding these factors can help individuals and organisations create or manipulate trends and epidemics. The book emphasises the importance of paying attention to small details and understanding the social dynamics behind spreading ideas and behaviours.
The fundamental concepts of the book in relation to naira abuse are twofold. First, the cultural context or external environment provides the soil for bad or good behaviour to grow and spread. Second, key people with remarkable personalities can cause or stop social epidemics because of their social profile or social network.
There is a link between the recommendation of Malcolm Gladwell and the arrest and prosecution of Idris Okuneye, better known as Bobrisky, a cross-dresser and social influencer, for naira abuse, and the arrest and ongoing prosecution of Cubana Chief priest (Pascal Okechukwu), in connection with naira abuse. Why selectively arrest the duo when everybody is involved in some form of naira abuse or the other, either by trampling on, spraying, mutilating or rumpling our banknotes? The truth is that it is nearly impossible for any law enforcement organisation to find and apprehend every perpetrator of this offence. Resources exist in limited supply. It is simple wisdom to begin with people who have disproportionate influence. This is perhaps what EFCC has done.
The first common ground is that both of these prosecuted celebrities enjoy considerable social media influence, whether for positive or negative reasons, depending on personal value systems. These two cases, though similar, are following different paths.
Bobrisky, in court, pleaded guilty and has since been handed a six-month imprisonment. Cubana Chief Priest did not plead guilty, so his case will go to full trial, putting the law to the test. This court case will assist us in providing answers to some critical questions: What are the societal ramifications of naira spraying, and how can naira misuse be proven? Is there need to amend the existing law and make it more relevant to the challenge? Will this fresh wave of enforcement stop the epidemic of naira abuse?
Regardless of how the legal proceedings turn out, they have highlighted how important it is to take the triplet societal plague of poor social behaviour, naira abuse, and their ancestor – corruption, very seriously.
I have identified six pillars for controlling or stopping naira abuse: Fight corruption because it is an enabler of abuse of the naira. The incestuous relationship between corruption, illicit financial transactions and naira abuse is well established.
Second, the government should deepen knowledge and change people’s orientation by embarking on mass enlightenment, as people must understand clearly what constitutes naira abuse and what the punishment is for the offence.
Third, address cultural issues relating to naira abuse through community engagement. People gifting money to celebrants at occasions is no crime but the manner of gifting has become the issue.
Fourth, government should renew the push for digital transactions.
Fifth, government must strengthen the structures of law enforcement. It is not just a police and EFCC matter. The judiciary must upend its knowledge on the subject matter.
Sixth, government must be impartial and objectively enforce the law to change cultural norms and public behaviour that defaces the naira. This may entail revisiting and improving the law.
The CBN, Police and the EFCC should study different models of changing public behaviour and draw up a model and strategy to deal with the issue of naira abuse, especially since it has become embedded in some cultures. Good examples abound abroad and in Nigeria. The British government employed various strategies to change public behaviour regarding spitting and other personal vices. Spitting in public places was prohibited through by-laws or municipal regulations, but it is social persuasion that finally gave the result.
These laws serve as deterrents and can result in fines or other penalties for offenders. They launched public awareness campaigns, collaborated with community stakeholders, and monitored and enforced the law.
However, most of all, they leveraged social norms and peer pressure to influence behaviour and encourage individuals to conform to accepted standards of behaviour by highlighting the societal consensus against spitting and certain destructive behaviours, while showcasing positive role models who embodied desirable conduct.
A model that seems to be working in Akwa Ibom State is the State Ethical and Attitudinal Reorientation initiative. Before 1999, the Akwa Ibom people experienced a severe social epidemic, “The pervasive and prevalent house help syndrome,” which gained widespread notoriety and led to the dubbed moniker, “Ekaette” for nearly every female domestic helper. The administration of Obong Attah took up the task of reorienting the Akwa Ibom people’s mindset. He established the Ethical and Attitudinal Reorientation Commission (EARCOM) and gave it the responsibility of raising public awareness about the importance of “minoring” vices and “majoring” in moral principles.
The struggle has persisted throughout the regimes, and Pastor Umo Eno’s present administration appears to be taking it to newer, more profound heights by hiring assistants for each ward and unit, and charging them to carry out the Commission’s work of value reorientation in remote areas.
The success story of Akwa Ibom is a model that the Federal Government can replicate. Changing public behaviour requires a multifaceted approach that combines legislation, education, community engagement, social support and enforcement efforts. By addressing the underlying factors contributing to undesirable behaviours and promoting positive alternatives, governments can effectively shape public attitudes and foster a more socially responsible society.
Peterside is a public sector turnaround expert, leadership coach, public policy analyst and columnist.
OPINION
Mohammed: A Visionary Leader Revolutionizing The Paradigm Of JEDC
By Friday Adakole Elijah
On October 18, 2022, Engr. Abdu Bello Mohammed assumed the mantle of leadership as the Managing Director/Chief Executive Officer of Jos Electricity Distribution Plc thereby inheriting a plethora of formidable challenges that threatened to stifle the organization’s growth.
Undeterred by the complexities of the task, Mohammed embarked on a transformative odyssey, driven by an unwavering determination to catapult the organization to unprecedented heights of success. As he navigated the labyrinthine landscape of obstacles, including antiquated equipment, inadequate network systems, energy theft, vandalism, and a dearth of skilled manpower, Mohammed’s leadership acumen and strategic prowess proved instrumental in surmounting these challenges. The introduction of innovative solutions, such as the load-sharing program, ensured that customers received a minimum of 16 hours of daily energy distribution, despite the company receiving only a paltry of the total energy generated to the national grid. Mohammed’s visionary leadership has yielded tangible results, as evidenced by the procurement and installation of cutting-edge equipment, including transformers, network improvement gear, and smart prepaid meters. These initiatives have significantly enhanced the organization’s operational efficiency, underscoring Mohammed’s commitment to excellence. The introduction of the “Debt Discount Promo” has incentivized customers to settle their outstanding debts, thereby reducing the company’s receivables and bolstering its financial stability. Mohammed’s diplomatic finesse has also been on full display, as he has fostered a spirit of cooperation and collaboration through courtesy visits to esteemed stakeholders, including the Governors of Benue, Bauchi, Plateau, and Gombe states, traditional rulers, and security chiefs. His business visit to NASCO Group of Companies, Ashaka Cement and Dangote Cement has underscored the company’s commitment to providing qualitative energy solutions to its esteemed clients, while his confirmation of the appointment of 121 staff and promotion of over 1,600 employees has boosted morale and motivation within the organization. The institution of monthly awards for the best-performing region has injected a healthy dose of competition, driving staff to strive for excellence and embodying Mohammed’s leadership philosophy, which emphasizes empathy, firmness, and a relentless pursuit of excellence. In conclusion, Engr. Abdu Bello Mohammed’s transformative leadership has reinvigorated Jos Electricity Distribution PLC, propelling it toward unprecedented heights of success. His vision, strategic acumen, and diplomatic flair have created a new paradigm for the organization, one that prioritizes efficiency, customer satisfaction, and employee welfare. As the organization continues to soar under his guidance, one thing is clear: Jos Electricity Distribution PLC is working, and Engr. Abdu Bello Mohammed is the mastermind behind its resurgence. Elijah is the Head, Corporate Communications, Jos Electricity Distribution PLC.OPINION
Looking beyond CBN’s Cocktail of Policies to 2025
By Toni Kan
Six months ago a friend I go on daily runs with took ill on a Monday evening. It was sudden and by the time I saw him hours later at the hospital, he was lying there very sick, very frail and hooked up to machines.
The diagnosis was sepsis and we were all surprised.
The morning before he took ill, we had gone on a 6km run. That was 2km more than our usual but there was a reason. We had gone to a party on Saturday and some “damage” had been done. So that Monday morning we had agreed to run the “foolishness” out of our system.Sepsis is a major killer in the UK and is described as “a life-threatening condition by The UK Sepsis Trust which says it “can lead to shock, multiple organ failure and even death if not recognised and treated promptly.
”Statistics from the NHS are more sobering. Sepsis “kills five people every hour and accounts for about 50,000 deaths per year in the UK alone.”
So, my friend was lucky to have “listened” to his body and gone to the A&E where he was prescribed a cocktail of drugs that included powerful antibiotics as well as hydrocortisone, vitamin C, thiamine and lots of intravenous fluids.
That incident came to mind as I read the Keynote Address delivered by Olayemi Cardoso, Governor of the Central Bank of Nigeria at the 59th Annual Dinner of the Chartered Institute of Bankers of Nigeria (CIBN) on November 29, 2024.
Nineteen pages long, it was expansive, insightful, comprehensive, wide-ranging, bold and visionary in acknowledging the myriad of issues they met on ground, the challenges encountered so far in fixing them and strategy for the future. It was like a Job Description and a set of Key Performance Indicators (KPIs) rolled into one.
Reading through, the image that loomed before me was of my friend on that hospital bed. When we met in the morning, he was bubbly and rearing to go with none of us the wiser about the bacteria ravaging his system. By evening the bacteria had won and it would have been a different story if doctors had not given him that cocktail of medicines.
The financial system Yemi Cardoso and team met on ground was being ravaged by an unseen bacteria and leading to a system collapse. The prognosis was bad – high inflation, multiple exchange rates, unchecked subsidy and rampant arbitrage, lack of access to international capital markets, poor investor confidence, waning foreign portfolio inflows, declining exchange reserves and decreasing diaspora remittances, a huge FX backlog, excessive money supply growth at 13% annually, fiscal crisis from unprecedented Ways and Means advances to the FG of N22.7 trillion and many more.
Yemi Cardoso was like a doctor who came to the quick realization that urgent action was required to stem the tide and steer the financial ship to a safe port.
What he did, he told the CIBN, was attack with a cocktail of “targeted policies, transparent market operations, effective coordination between monetary and fiscal authorities, and a commitment to rebuild trust.”
What did he think success would look like after this cocktail of policies has been implemented? Cardoso told his audience that what the CBN expects in 2025 and beyond is a regime that will see the CBN “stabilize the exchange rate, curb inflation, strengthen banks’ capital buffers, and foster an environment conducive to the success of both businesses and individuals.”
These are already happening and Olayemi Cardoso was not shy in pointing out areas where progress has been made.
External reserves which fell to $33.22bn in December 2023 have grown back to $40bn the highest level in 3 years and “the equivalent of eight months’ import cover.”
That is a reflection of rising investor confidence evident in the 72% growth in foreign portfolio inflows and increase in diaspora remittances from a monthly average of $300m to $600m with a monthly target of $1bn set by the CBN.
This is being buoyed by the integration of the Nigerian diaspora into our financial system by initiatives like the introduction of the non-resident BVN registration. At the time of writingthis piece, news of an oversubscribed Eurobond issue of $2.2bn filtered out from the Debt Management Office (DMO).
The fiscal crisis from excessive Ways and Means which was the equivalent of almost 11% of our GDP in 2023 before Cardoso and team took over at the CBN has been ended with the backlog of over $7 billion in unfulfilled commitments cleared.
The FX market has been stabilized with a tightening contraction in the gap between the official and parallel markets and more sanity is expected with the take-off on December 2, 2024 of the electronic FX matching system. Analysts are already forecasting that the naira will end the year low.
A regime of transparency has led to regular and improved financial stability reports, balance of payments data, and FX market updates, datasharing, the launch of a new website and technology driven innovations intended to “strengthen the CBN’s credibility and public trust in our policies.”
Speaking at that dinner, Cardoso summarized his ultimate destination as “price and exchange rate stability, catalyze sustainable economic growth, and protect the livelihoods of millions of Nigerians.”
While all these are cause for cheer, challenges remain. The naira is still taking a beating something Cardoso has attributed to buyer’s desperation and a distorted view of the value of the naira relative to the greenback. This will hopefully be solved in 2025 and beyond by “the introduction of the electronic matching system” which “will correct these distortions by enhancing the price discovery process.”
Inflation remains a thorny issue at 33.88% despite efforts to “contain inflation and restore stability” by “raising the Monetary Policy Rate by 875 basis points to 27.5%”. The inflation target of 21.4% is yet to be achieved.
But Cardoso is upbeat: “Our tight monetary policy stance has altered the previous dire trajectory, and we expect a downward trend in 2025. Inflation remains unacceptably high, but the signs are encouraging, particularly given that the full effects of monetary policy typically take 6-9 months to impact the consumer sector.”
To conclude one must ask whether Cardoso and his team have factored in the coming of Donald Trump into their plans for 2025. As Cardoso noted in his keynote, the pandemic, global geopolitical tensions and inflation have had a deleterious effect on emerging markets in the form of “withdrawal of capital flows” thus “creating new challenges for economies like ours.”
Speaking further he noted that “Major central banks are gradually easing their monetary conditions and this shift is slowly reopening access to international capital markets for emerging economies.”
But for how long? Recent comments from Donald Trump in reaction to plans for de–dollarisation by the BRICS nations deserve attention from the CBN as the apex bank looks to the future.
This is important because in October this year, Nigeria formalized its romance with the BRICS bloc by becoming a partner as reported by The Punch. “BRICS has officially expanded its alliance, adding 13 new nations as partner countries, though not as full members…The countries are Algeria, Belarus, Bolivia, Cuba, Indonesia, Kazakhstan, Malaysia, Nigeria, Thailand, Turkey, Uganda, Uzbekistan, and Vietnam.”
High on the agenda of the BRICS nations and their partners is to establish “a unified currency or bolster bilateral trade agreements that bypass the dollar. These efforts aim to reduce reliance on the U.S. dollars…” reports Global Financial Digest
Trump has reacted to this by threatening 100% tariffs on imports from the BRICS nations. As President, Donald Trump’s plans to entrench his America First doctrine and the dollar’s hegemony will hobble plans for de-dollarisation of economies in the BRIC bloc as well as the emerging markets of the global south which remain vulnerable to tectonic shifts in the larger global economy.
This is something that could have repercussions for the Nigerian economy described by Cardoso as a “resource-intensive” country.
Kan is a PR/crisis management expert and financial analyst.
OPINION
For the Three Musketeers of Kano
By Lasisi Olagunju
An epic poet describes the Fulani hunter as “shepherd of wild animals.” The hunter is also the one “who knows the calm and wild forest, with its many dangerous paths…..” When a man so described describes you as a target, you had better go sew a dress of steel.
If you are from the South-West and you can read, read this: “Our next target now is this geo-political zone. The south-west geo-political zone. You know we are good at getting the target. We will do all that is possible to bring them into the fold.” That is from Abdullahi Ganduje, immediate past governor of Kano State and incumbent national chairman of the All Progressives Congress (APC). He made the solemn pledge in Akure, the Ondo State capital, after his party’s governorship election victory in that state two weeks ago.Now, which fold was Ganduje talking about? And who are the “we” that are “good at getting the target”? Ganduje is smart. He chose his words deliberately and carefully. The strongman from Kano has significantly stepped back from his earlier obsession with capturing Oyo and Osun states. He now targets the entire zone. For whom? It can’t be for the APC – the party already has two-thirds of the zone. In Adebayo Faleti’s ‘Ogun Awitele’ (Foretold War), a band of thieves sent a handwritten letter to a village head: “We are coming to rob your people in seven days’ time.” The tone of the letter rattled the Baale and his chiefs. If you are sure of the efficacy of your amulets, you swear by them. The leader of the band of thieves signed his name as Ajiboogunsoro (he-who-wakes-up-to-converse-with-charms). A significant takeaway from that moment of fear and anxiety is the village head’s charge to his security chiefs to always know that no matter how powerful the boastful invaders are, “you should always remember that you are hunters, they are thieves (ode ni yín, olè ni wón)”. What Ganduje, the big man, said is evocative of a deja vu. There is something in Nigeria’s political history that suggests today’s mission as an echo of a daring, fateful yesterday.But, whatever the man might be saying, I suggest he and his “we” take time to watch closely the Eyo masquerade of Lagos and listen attentively to their songs. The Eyo seductively mock their challengers with a folk song composed for colonialism on the futility of its land-grabbing propensity. They sing: “The white man took Oluwole; Lagos did not utter a word. With ease, the white man took Marina; again Lagos was silent. Now, they want to take Isale Eko. They think we are dumb.” The Eyo actually use the Hausa word, Kurumo (deaf and dumb). The Kano man, Ganduje, understands perfectly the imagery of the speechless who is at the same time dead in hearing. I am very sure that no one ever takes the South-West as a zone of the invalid, deaf and dumb.Rabiu Musa Kwankwaso is a former governor of Kano State. He has been the boss (and friend) of Ganduje from the beginning of time. In a speech he delivered at the convocation ceremony of Skyline University, Kano, two weeks ago, Kwankwaso claimed that “Lagos” was working hard to enslave the whole North. He said: “Today, we can see very clearly that there is a lot of efforts from the Lagos axis to colonize this part of the country.” Kwankwaso is an old war horse and a rambunctious power-player. You ignore him at your peril, and to your sorrowYou remember a gentleman called Festus Odimegwu, a former Managing Director of the Nigerian Breweries Plc who was made the chairman of the National Population Commission (NPC) by President Goodluck Jonathan? In October, 2013, because Odimegwu said “No census has been credible in Nigeria since 1816″ (1866?), Kwankwaso stormed the Villa and asked President Jonathan to sack the man as NPC chairman. Kwankwaso told State House correspondents after meeting Jonathan: “I also raised the issue of the chairman of the National Population Commission, NPC, headed by one Festus Odimegwu. We are not happy about that appointment, and (we) think that it was a mistake. He (Odimegwu) had only worked in the alcoholic industry all his life. And my guess is that he’s taking a lot of his products and that is why we feel that his appointment is a mistake because he cannot be the chairman of NPC and at the same time attack what his predecessors have done.” With “automatic alacrity”, Jonathan obeyed Kwankwaso and asked Odimegwu to go on October 17, 2013. That is how you feel the power of power.Ganduje was direct in naming his target: the South-West. Kwankwaso went poetic; Lagos was (is) his metaphor for the West. The man who wants to be president of Nigeria also spoke on tax collection. He said: “Today, we are aware that the Lagos young men are working so hard to impose taxes and take away our taxes from Kano and this part of the country to Lagos.” Who are Kwankwaso’s “Lagos young men”? And what VAT is Kwankwaso fighting over? VAT from confiscated products of “the alcoholic industry”? Or from the leveled groundnut pyramids of Kano?Kwankwaso spoke about colonialism; Ganduje spoke about “getting the target.” Those two deserve more than anyone’s passing attention. Between them, Kano has been a captive cripple since 1999. Ibrahim Shekarau who acted during an interlude was Kwankwaso’s permanent secretary. The incumbent governor, Abba Kabir Yusuf, is Kwankwaso’s son-in-law. Check the figures: How many poor people did they meet in Kano in 1999, how many do they have now? In his ‘The Psychology of Science: A Reconnaissance,’ Abraham Maslow wrote in 1966: “If the only tool you have is a hammer, it is tempting to treat everything as if it were a nail.” Some describe what Maslow propounded as the ‘law of the instrument’. Others say it is the ‘law of the hammer’. Yet, some other analysts prefer to christen it ‘Maslow’s hammer’ or ‘the golden hammer.’ For persons whose idea of leadership is all about slave raiding, zone targeting and capturing, their choice of mission will always employ the rhetoric of slavery.While Ganduje and Kwankwaso are doing their own their ways, the third Kano man, Shekarau, has been busy setting up a group he calls League of Northern Democrats (LND). At a meeting with the Arewa Consultative Forum (ACF) in Kaduna some days ago, a more nuanced Shekarau spoke on why he is doing what he is doing: “This marks the beginning of what we hope will be a transformative coalition for Northern Nigeria to confront its challenges…The challenges facing our region – poverty, insecurity, illiteracy, religious intolerance, disunity, and diminishing political influence – are indeed serious. The North is today in an ugly situation…” There is a fitting quote here attributed to Albert Einstein: “We cannot solve our problems with the same thinking we used when we created them.” Those who disfigured the face of beautiful northern Nigeria cannot now beautify it. You know what happened when the monkey insisted she wanted to beautify her child’s ugly face? She pushed the eyeballs deeper into the sockets. Monkey’s fingers are not structured to beautify anything. Take a look at them.So, when I heard Ganduje say that his target was the South-West, I wondered why it is not his “target” that Kano’s groundnut pyramids are restored. And, when Kwankwaso said ‘Lagos’ was determined to colonise his “part of the country”, you should wonder why his rhetoric was all about power and not how to make his part of the country as safe and prosperous as the part where Lagos belongs. And Shekarau spoke about the North’s “diminishing political influence.” If I would counsel him, I would suggest that what the North of 2024 needs to regain its mojo is for its leaders to make the region safe by educating their young, and empowering and feeding their poor without enslaving them.I call Kwankwaso, Ganduje and Shekarau the three musketeers of Kano. A soldier armed with a musket is a musketeer. In French history, we read of the Musketeers of the Guard (Mousquetaires de la garde) or the King’s Musketeers (Mousquetaires du roi). They existed to fight the king’s battles. Their exploits of guile, of swordsmanship and chivalry later spilt over to the plains of popular culture. Because of them, we have books and films with ‘The Three Musketeers’ (Les Trois Mousquetaires) as titles. The story of Kano since 1999 has been an intricate story of war and romance among those three musketeers who shared the years equally among them. They are not done with that city state, and with their North. They are not even done with the whole country. That is what you get when an elite band targets, captures and enslaves an enclave. Get your popcorn. They appear gearing up for war – with “Lagos”. And a good fight is coming.