Former deputy governor of the Central Bank of Nigeria (CBN), Prof. Kingsley Moghalu, has asserted that as Nigeria finds itself in a profound economic turmoil, resulting in diminished purchasing power, hyperinflation, devaluation of the naira currency, and disruptions in the food supply chain, it must be ready to take bold and tough decisions in order to forge ahead.
He attributes these woes to a decade of mismanagement and official corruption, primarily under the tenure of former President Muhammadu Buhari.
Professor Moghalu highlighted the past ten years, during which the All Progressives Congress (APC) has been in power, as particularly detrimental.
"They were the years of the locust, marked by unprecedented mismanagement of fiscal policy, unproductive external borrowing, unnecessary budget deficits, illegal Ways & Means lending by the Central Bank of Nigeria (CBN) to the federal government to the tune of N30 trillion, and unprecedented corruption," Moghalu said yesterday at the 16th LEADERSHIP Conference and Awards in Abuja.
Moghalu said instead of helping to salvage the situation, President Bola Tinubu-led government made three significant strategic errors early in its first seven months in office that worsened an already bad situation.
He specifically said some of the government's policies, especially petrol subsidy removal and floating of the naira, were introduced without thorough preparation for the after effects.
He argued that Nigerians ought to be educated on the economics of why these subsidies had to go, and on what steps the government was taking to mitigate the anticipated impact. He believes that the forex reforms at the central bank should have benefitted from prior, and that in-depth consultations with institutional investors, who are the movers of global capital, and in the absence of robust revenues from oil, influence forex liquidity through capital importation.
Regarding the exchange rate unification and the decision to further float the naira in a liquidity-rich environment, Moghalu labelled these actions as mistakes, stating that they worsened the economic situation.
"The exchange rate unification and a further effort to float the naira in an environment awash with naira liquidity (a loose monetary environment) was a mistake," Professor Moghalu stated.
Moghalu advocated for the continuation of the CBN's recent monetary policy stance of tightening the money supply for at least 24 months until inflation is brought under control. He emphasized the need to prioritise macroeconomic stability, particularly price stability, and overgrowth during times of crisis.
"At a moment of crisis such as this, a choice must be made between macroeconomic stability, in particular price stability and growth," he said.
He also decried the appointment of the president's cabinet which took too long in a sensitive period of transition. He said when the appointments were finally made, "the cabinet's composition turned out to be a predominantly "political" one instead of a strong bench of apolitical technocrats to address the economic crisis, which investors had hoped for. This was a lost opportunity."
Moghalu, who said Nigeria must not waste the present economic crisis, also stated that it was time to reposition the economy for the long term, out of the lessons of today's challenges.
He said the National Assembly's support for illegal ways and means loans from the CBN to the federal government must never be repeated if Nigeria is serious about getting out of the current economic crisis sustainably.
By way of solution, the former CBN deputy governor said President Tinubu should reshuffle his cabinet before his administration clocks one year in office to succeed with the economic targets he has set for the administration.
"President Bola Tinubu needs to revamp his cabinet... Removing the subsidy is just one aspect of the reform, there are other things to do," Professor Moghalu remarked at the event.
Moghalu said the current administration must strive to guarantee access to credit for the manufacturing sector and small and medium-scale enterprises, improve power supply for production activities, secure the country, end oil theft and promote transparency and accountability in the oil exploration segment of the petroleum sector.
On the crisis in the foreign exchange market, Moghalu asked the CBN to go after the chief executives of commercial banks for round-tripping and manipulation of the foreign exchange rate instead of scapegoating Cryptocurrency traders for the devaluation of the Naira.
LEADERSHIP recalls that the federal government is demanding at least $10 billion as retribution from Binance for profiting from its illegal transactions in the forex market.
Moghalu said the challenge Nigeria faces today calls for the rollout of a bold, visionary, and engineered strategic project for fundamental economic rebirth.
He advised the government to introduce reform measures that will ensure the investment of N20 trillion nationwide projects in railway, housing, and agriculture.
He called on government to revamp fiscal policymaking, noting that fiscal policy in Nigeria has been extremely weak for many years, a situation that has led to excessive reliance on the CBN by the government.
The professor advised President Tinubu to set up a seven-man team of economists to help find solutions to the issues. He condemned the recently constituted economic team of the President as simply an assemblage of businessmen who are also players in the economy.
He said the implication is that they would not give the desired outcome for the revival of the economy due to possible conflict of interest.
Economy Not In Distress, President Replies
However, in his reaction, President Tinubu rejected the notion that Nigeria's economy is in distress, and instead highlighted signs of progress and opportunity.
In his address as he accepted the LEADERSHIP Person of the Year 2023 Award in Abuja, Tinubu said characterising the economy as distressed and helpless is not the case at the moment.
Represented by the minister of information and national orientation, Mohammed Idris, the president, however, admitted that Nigeria is passing through challenging times.
He said the present times have also been marked by unprecedented opportunities to break away from the rent-seeking and waste that were once the order of the day.
He said, "Let me express my gratitude to the LEADERSHIP Group Limited, one of Nigeria's and Africa's most successful and influential media brands, for this honour being conferred on me today as the LEADERSHIP Person of the Year 2023 - a recognition, of course, 'on this notable, can-do spirit that marks you out as a quintessential politician who defied monumental odds to emerge as a candidate of your great party, the APC, after which you went ahead to win the 2023 presidential election. The award is also to acknowledge your courage in taking a number of difficult but necessary decisions."'
"Interestingly, the last line offers itself as a perfect answer to the question that is the theme of today's event, which is, Nigeria's Distressed Economy: Which Way Forward?
"I shall start by respectfully challenging the notion that Nigeria's economy is in distress, suggesting helplessness, being at the mercy of the people; that we are at the mercy of something we have no control over. But that is not the case here.
He, however, agreed that the county was going through a rough patch, but that there are positives.
He went on: "We have challenging times, no doubt, but these times have also been marked by unprecedented opportunities to research the cause and build a sustainable economy away from the rent-seeking and waste that was once the order of the day," he said.
Tinubu cited data from the National Bureau of Statistics showing 3.46 percent year-over-year economic growth in the latest quarter, a jump from 2.54 percent the prior quarter.
He also pointed to a 66 percent surge in capital importation into Nigeria in Q4 2023 after a 36 percent decline previously.
Perhaps most significantly, he said the Nigerian Stock Exchange recently crossed the 100,000 point mark for the first time ever.
"There is no one who would look at this data who would conclude that distress is the accurate way to describe the Nigerian economy," the president insisted.
Tinubu acknowledged the country is "struggling in a number of ways" but said this is the outcome of necessary economic reforms being implemented by his administration.
A key reform was the removal of the costly fuel subsidy, which he said had boosted petrol imports by over 50 percent and revenues to federal, state and local governments by 50-100%.
The president announced that those increased revenues will help fund a series of new economic initiatives.
"For example, the additional funding that we are receiving is going to a new minimum wage for which negotiations have started between the federal government, the state governments, and the Organised Labour.
"I have approved N75 billion MSMEs Intervention Fund which aims to provide single-digit interest loans to SMEs. And the third is a N75 billion Contractual Interest Fund targeting manufacturing businesses with selected beneficiaries eligible to access up to N1 billion.
"In addition, our new federal student loan programme will take off shortly, providing interest-free financial assistance to students, not just for students in our tertiary institutions, but also covering those in vocational and skilled approaches.
"For the poorest and most vulnerable among us, the social investment programme currently under review, to reposition it for maximum impact, will support millions of households with direct cash transfers that will enable them to meet their basic needs.
"I have approved N100 billion, as you are all aware, initiative for the compressed natural gas (CNG), which will deliver CNG-powered buses and 18 of our shipments.
"Let me ask Nigerians for a little more patience as we await the imminent rollout of these buses en masse, which in turn will bring down the cost of transport.
"In the area of food security, I am glad to say that our dry season farming programme which, kicked off in November 2023, is well on course. The governor of the Jigawa State is here and is also a leader in that direction.
"We have received tremendous support from partners like the African Development Fund. As part of our commitments as a government, I have approved N100 billion for the National Agricultural Development Fund for the year 2024 while we have commenced the repositioning of the Bank of Agriculture.
Tinubu also highlighted $30 billion in new foreign direct investment commitments secured since taking office in May across sectors like manufacturing, telecoms, oil and gas.
He paid tribute to the late Sam Nda-Isaiah, founder of LEADERSHIP Group, praising his wife, Mrs. Nda-Isaia, for sustaining his legacy.
"The memory of Sam Nda-Ishaiah will live on, not only in our hearts, but also in your feelings and in the family and the business legacies that he has left behind.
"Now, to our sister, Madam Nda-Ishaiah, thank you for carrying on so boldly and powerfully from where Nda-Ishaiah has stopped. We appreciate what you have created and we will continue to support you," he added.
Awards Push To Do More, Say Governors
Meanwhile, the governor of Niger State, Mohammed Bago, who spoke behalf of the Governors of the Year 2023 award recipients, said the gesture would spur them to do more.
"Let me first appreciate the LEADERSHIP Group on behalf of the governors. This you have done, we can assure you, is another push for more," he said.
He said announced N250 million scholarship for Kano Keke rider Auwalu Salisu who returned N15m he found in his commercial tricycle to the owner.
He said, "I'm the first son of Bola Ahmed Tinubu; as such we cannot allow Baze University to outshine us, so on behalf of the President in his personal capacity, Auwalu, we are giving you scholarship of N50 million, on behalf of the governors of APC additional N50 million, on behalf of the ministers of APC another N50 million, on behalf of Niger State government another N50 million and on behalf of myself and family N50 million, so Auwalu, you have N250 million scholarship to go and do PhD."
He said people of such calibre should be encouraged to be in leadership positions for the betterment of the country.
He also promised to name a street after Auwalu in Minna, Niger State, for his integrity.
Bago said it was time for Nigeria to be productive to overcome hunger and poverty, adding that Niger State alone has the capacity to feed the whole of Africa.
He disclosed that his administration had cleared over a million hectares of land for cultivation.
"Federal government is doling out 42,000 metric tonnes of grains; by June I'll give out 100,000 metric tonnes of food and it is deliberate. We mean what we are saying; we'll feed the world," he said.
I'm Not Desperate To Be President - Peter Obi
On his part, the former presidential candidate of the Labour Party, Mr Peter Obi, said he is not desperate to be Nigeria's president, but that he only wants the country to work.
Obi said it is a shame for Ukraine, a war-torn country, to supply Nigeria with grains when Niger State alone can feed the whole of Africa.
"Let me thank the LEADERSHIP Newspaper for this event and the award. We've all heard from the keynote speaker
"For me, this award, I am grateful to the almighty God. If I have the opportunity, I will give my all to the country.
"I am not desperate to be president, I am desperate to make Nigeria work," Obi said while giving statistics of Nigeria's land to show it can feed Africa and remove millions from poverty.
"We have no reasons to be poor. Poverty should never be part of our lives, especially in the North," Obi said, adding that with over 7,442,00 square metres, Nigeria can feed Africa.
"Ukraine has no reason to give us grains. Niger State can feed Nigeria Africa with over 73,000 square metres of land.
"The two biggest states in the North East, Borno with over 70,000 square metres of land, and Taraba, are four times the size of Belgium that is exporting food. There is so much we can do in the country if we have the right leadership."
He went on to link poverty to crime and insecurity.
"The more you remove people out of poverty, the more you have less criminals," Obi said while announcing a scholarship for Auwalu Salisu, a Kano Keke rider who returned N15 million to his passengers.
Obi said since Salisu is in SS 2, his education in the secondary school is taken care of till he graduates, and that his university degree will be taken care of by the Baze University.
We Recognise Those Daring To Seize Possibilities - Nda-Isaiah
On her part, the chairman of LEADERSHIP media group, Zainab Nda-Isaiah, said the LEADERSHIP award is for individuals who dare to seize possibilities.
In her welcome address at the 16th LEADERSHIP Conference and Awards on Tuesday at the Transcorp Hilton in Abuja, she emphasised the role of the awards in recognising individuals who are making strides towards a more peaceful, stable, and prosperous Nigeria.
She said: "At LEADERSHIP, we use the awards to spotlight those we consider deserving in their various categories.
"We may not be where we would like to be, but these men and women are making strides in the direction that we hope will lead us to a nation of peace, stability, and the possibility of prosperity for all who dare to seize it."
Nda-Isaiah began by paying tribute to her late husband, Sam Nda-Isaiah, the founder of LEADERSHIP Newspaper.
She described him as a man of vision, integrity, and unwavering dedication to Nigeria, who used his pen fearlessly.
According to her, "This journey began under the capable leadership of a man with big ideas! A son of the soil, who had vision, and integrity.
"A man who was fearless in his use of his powerful pen, a great husband dedicated to his family, friends, and country.
"I could carry on, but I am sure this man needs no introduction. Many knew him personally and came in contact firsthand with his passion and extreme zeal for the nation of Nigeria.
"This man was my husband and father of our five children, the legend, Sam Nda-Isaiah.
"We remember him with love, fondness, respect and, above all, honour his memory for the legacy he has left behind for the entire team at LEADERSHIP Group Limited to carry on. Today's event is very special for several reasons. I will name a few."
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She highlighted the significance of the event, which coincided with the 20th anniversary of LEADERSHIP's founding.
"This conference and awards, year after year, provide an exceptional platform for setting the agenda, offering solutions, and new insights to a range of the country's problems.
"Today's event coincides with the 20th anniversary of the founding of LEADERSHIP - the dream of one man, my husband, the great Sam Nda-Isaiah," she said.
Mrs Nda-Isaiah expressed her gratitude to the award recipients including the Person of the Year, President Bola Ahmed Tinubu; Politicians of the Year Peter Obi and Senator Natasha Akpoti-Uduaghan; Governors of the Year, and others.
She acknowledged the contributions of keynote speaker, former deputy governor of the Central Bank of Nigeria, Professor Kingsley Moghalu, and expressed her gratitude to the Etsu Nupe, Dr. Yahaya Abubakar, for gracing the event.
Nda-Isaiah emphasized the role of the awards in recognising individuals who are making strides towards a more peaceful, stable, and prosperous Nigeria.
She offered congratulations to the award winners, expressing her hope for their continued success.
It's Motivation To Do More For Humanity - Emir Of Bauchi
The emir of Bauchi, Alhaji Rilwanu Sulaiman Adamu, OFR, who was awarded with the Special Impact Person of the year 2023, was represented at the event by the Waziri of Bauchi, Muhammad Uba Ahmed Kari, who collected the award on behalf of the Emir.
In his interaction with LEADERSHIP after the receiving the award, the Wazirin Bauchi said that the Emir had really wanted to be at the occasion himself but was overcome by some very urgent and personal issues which made him miss the event,.
He, however, thanked the management of LEADERSHIP newspaper for the honour, saying it will motivate and galvanise him to do more in the service of humanity.
Moniepoint Excited At Winning Fintech Company Of The Year
Moniepoint has expressed delight at winning the coveted award of Fintech Company of The Year, 2023, conferred on it by the LEADERSHIP Media Ltd.
Head of performance marketing of Moniepoint, Tomisin Araoye, made this known while receiving the award during the 2023 LEADERSHIP Awards, yesterday, stressing that it is a great achievement that will spur it to do more in the financial sector.
Moniepoint provides an all-in-one payments, banking and operations platform for businesses and their customers.
She said, "There is no way we would have gotten this without people employing our services. It is a huge achievement for us and it makes a big difference. We have a team of people that have put their own heart in making sure that the products we provide for them are on point and always available to users. We are very grateful to the LEADERSHIP team and we look forward to many more achievements."
She called for more financial policies that will help drive the sector even as she noted that Moniepoint started as agency banking and then went to business banking and now is into personal banking.
Speaking on the impact Moniepoint has made on the economy she said, "There will be many more opportunity to grow and we look forward to it, and at the end of the day growth for us is financial inclusion, which is not just for people in the urban areas but people in the deepest parts; everybody needs to be included."
We Know You Love Us, Ishiekwene Tells Dignitaries
The editor-in-chief/senior vice chairman, LEADERSHIP Group, Azu Ishiekwene, in his vote of thanks commended the dignitaries at the conference and awards ceremony for their support and encouragement over the years.
"We thank you all very much for your patience, involvement and support over the years. We know that you love us for the work that we do, the work of providing content of the purest quality possible, day in, day out across various platforms.
"And we are convinced that you love us more for who we are. Once again, on behalf of the chairman, members of the advisory board, we thank you all for coming," he said.
