The Naira’s free fall: Which way, Nigeria? (2)

Today, we need to reminisce, recollect and take stock of the local manufacturers that were spread all over the country; the likes of Peugeot (cars) in Kaduna, Volkswagen (cars) in Lagos, Mercedes ANAMCO (trucks and buses) in Enugu, Steyr  (agricultural tractors and components) in Bauchi, Leyland (trucks and buses) in Ibadan, Vono Products (households and vehicle seats) in Lagos, Dunlop (tyres) in Lagos, Michelin (tyres) in Port Harcourt, Exide (batteries) in Ibadan, TSG and IsoGlass (windshields) in Ibadan, Ferodo (brake pads and discs) in Ibadan, Rubber plantations for tyres located in Ogharefe in the then Bendel State, also in Ogun State and in Rivers State; just to mention a few.

It will be unfair too, if we fail to enlist the following products and services that were locally provided within the economy, as well. Agricultural value-chain was at its peak in the past. An example is the Vegfru tomato factory at Dadin Kowa in Bauchi State. The national carrier, Nigeria Airways, was fully operational in virtually all parts of the world. From the locally tanned leather in Kaduna, Bata and Lennards were producing foot wears and shoes for Nigerians; Sanyo was producing Radio and TV sets in Ibadan, Thermocool and Debo were producing air conditioners, refrigerators and deep freezers; electricity cables were produced by Kabelmetal in both Lagos and Port Harcourt, NOCACO in Kaduna, and Nigerian Wire and Cable in Ibadan; NGC was producing cooking gas/LPG cylinders in Ibadan, toilet water cisterns (WCs) were produced in Abeokuta and Kano; Kwalipipe in Kano and Duraplast in Lagos were producing pipes for pipe-borne water; Textile mills were in Onitsha, Asaba, UNTL in Kaduna and Chellarams in Lagos producing clothes. Today, over 95 percent of these gigantic manufacturing outfits in the economy have either relocated to other countries in West Africa or they are no longer in existence (gone under because of the Nigerian factor, corrupt practices).     

Corrupt tendencies, deep in our national fabric will simply not allow the economic drivers or those in leadership to just apply some restraints and do a momentary sacrifice of patriotic service for the sake of this economy, for its emancipation and survival. Just as posited, on the soaring dollar to naira rate, by the CEO of Confederated Facilitators Limited Group of Companies, Lai Omotola, that “the economy is not being driven by ‘market forces’ but, by wealthy elite businessmen, whose only business is to speculate on the currency (he tagged them ‘market cabals’). These speculators (under the guise of manufacturing plant-needs of say, $10 million, just officially taking USD in and out) operate rent seeking by selling huge excess of about $9 million to the black marketers; and creating a wide gap (of about N300.00 per USD, and rake in like N270 million profit without having a staff or investing anywhere) in the exchange rate, thereby forcing the USD upwards above N1,200; as against the floating rate of not more than N2.00 difference in the official and parallel markets (where in the actual sense, the CBN hasn’t the physical USD to back up the naira in the floating fiscal policy) hence, this stage-managed USD scarcity, based on the fundamental economic principle of demand and supply. As a mastered game by these market cabals, in a situation the market demands like $100 million (which they already have at their disposal and they too, are the very ones supplying it to the exchange market because, about 80 percent of the pumped USD for instance, end up in their hands), they would only release like half of it, to create artificial demand pressure at the exchange market. With the current naira float policy, they control and determine the exchange rate (because of their inordinate ambition of making excessive profits). Then, how can this economy survive or improve, since it’s not powered by market forces but by cabals? 

“We need to redesign and restructure the mode of the legitimate currency inflow to the economy (vis-a-vis the investors that are composed of both local and foreign); balance it with what takes out funds from the system (subsidising imports by this age-long practice, a deliberate fiscal policy of floating/defending the naira with $1.5 billion every month), with an aim of registering a net excess savings within a given period (backward integration and import substitution), which can be achieved by supporting and patronising made in Nigeria goods and services more, than before now (for instance, DSTV, MTN and Airtel through data and phone calls, alongside luxury goods for our wasteful spending and our consumption habits that gulp billions of USD annually, with such funds going out to service other economies). It is generally accepted that “no country has been transformed by politicians” (it is openly said, as it is verifiable in the Google documentary of the “men who built America”). In America, it was done by the “entrepreneurs, innovators (from the private sector who create ideas), and nonprofits that build countries for the societies to change in any country; not politicians and not politics”.

Indeed, Nigerians have voluntarily abandoned their own capacity and delegated their own stability in the hands of politicians through social contract (democratically done on trust); whose duty is majorly to regulate and tax at various levels in the country, with the expectation of improving the lots of the electorates through democratic dividends. The government actually builds institutions that sustain democracy, and provide the foundation for economic growth. These leaders however, unfortunately, still spend trillions to acquire official vehicles which, of course, is the much talked about heavy cost of governance in our current democratic system. But that shouldn’t be, because the primary aim of a leader or public officer (political office holder) is to seek after the wellbeing of all his or her subjects within the constituents. We do hope that the leaders would rethink and have a change of heart as things are getting out of hand, to begin fixing the economy the way it should be. This economy needs to be rebuilt because, truly, the potentials to actualise the economic goals for everyone are enormously in abundance within the economy.