By Okeoghene Akubuike

An economist, Dr Ayo Anthony says the new monetary policy by the Federal Government may help reduce Nigeria’s inflation rate in the long term.

Anthony said this in an interview with the News Agency of Nigeria (NAN) on Sunday in Abuja.

He spoke against the backdrop of President Muhammudu Buhari’s national broadcast on Thursday.

NAN recalls that the president in his message on The Challenges of the Currency Swap and State of The Nation, said one of the things the monetary policy would achieve in the short to medium and long terms, was to reduce inflation.

According to the president, in the short to medium and long terms, it is expected that there will be a lowering of inflation as a result of the accompanying decline in money supply that will slow the pace of inflation.

The economist, however, said in the short and mid-term, the policy may not reduce the inflation rate.

According to him, in the long run, the policy may work and may help reduce the inflation rate If and only if inflation in Nigeria is a monetary issue.

“For example, according to the statistics released, the CBN says about N3 trillion is the money in circulation, that is what you call money in supply.

“But out of the so-called N3 trillion in circulation, more than 60 per cent of it is not in circulation and still prices of goods are going up.

“More than 60 per cent of this money is not driving demand which means it is not in the banking sector.

“If money is driving demand, you can say money is the cause of inflation.”

Anthony, therefore, said that the current inflation in Nigeria was not an issue of excess money in supply driving demand.

“So, currency redesigning may not in the short run address the inflation problem, because what is the essence of redesigning?

” It is to bring in money outside the banking sector into the banking system, it is to bring in money people have kept outside transaction into transaction.

“So if this money eventually comes into transaction, and other fiscal policy measures are not put in place, it may even drive inflation higher, because more money will now be chasing fewer goods.”

The economist, however, said the short and intermediate solution to inflation in Nigeria was to remove the bottleneck in aggregate supply.

Anthony said that supply was the major cause of inflation in Nigeria, saying there was no adequate supply.

“That is why I said earlier that in the long run, this monetary policy may work because eventually if this money that is outside the banking vault comes in, definitely it will be available for suppliers.

He said if the money was available for suppliers, it may also move the price interest rate down, meaning that in the long run, Nigerians would see the positive impact of the naira redesign.

“But in the short run and intermediate-term, it may not lead to a reduction in inflation because inflation in Nigeria is not a monetary phenomenon as I said, it is a supply-side issue.

“When you say supply side, that is factors that affect aggregate supply like exchange rate, energy, and cost of production, these are the supply side.

“The cost of production in Nigeria is high. Tell me something in Nigeria that does not have an element of importation. With an exchange rate of about N700 per dollar.

“So with this type of exchange rate, definitely the producer will be constrained in producing more because they do not have access to dollars at a price that is friendly to production.

Anthony said that on the energy supply side, most industries and factories used diesel as a source of power, which was now very expensive and on a steady increase every month.

He said the effect of this was an increase in the price of goods and services the companies were producing.

The economist also said insecurity was a supply-side factor, saying that the Russia-Ukraine war was affecting supply as well.

“So when I say supply, it is a multidimensional factor, we have internal and external factors.

” The war in Ukraine is more external, but the foreign exchange is more internal and external; energy cost is more internal and insecurity is more internal.”

He said until these factors were addressed, Nigerians may not see any sign of price stability because inflation ideally was being influenced by two forces, demand and supply.

“The demand side is more money, when there is money, people will demand but when there is no money people won’t demand.

“Now, there is no money in Nigeria, look at this cashless issue, do not be surprised inflation may come down slightly because people are not buying.

“Suppliers may be forced to reduce their prices to induce buyers to buy. But mind you, they cannot reduce prices beyond their profit margin.”

NAN reports that the latest report from the National Bureau of Statistics (NBS) shows that Nigeria’s headline inflation rate increased to 21.82 per cent on a year-on-year basis in January 2023. (NAN) (www.nannews.ng)

Edited by Ese E. Eniola Williams

By Lucy Ogalue

Some stakeholders have appealed to the Federal Government and relevant authorities to remove obstacles and improve accessibility of cash to ameleorate the sufferings of Nigerians.

They told the News Agency of Nigeria (NAN) on Sunday in Abuja that Nigerians were hungry and getting desperate due to insufficient cash.

A Professor of Transport Management, Federal University of Technology Owerri, Calistus Ibe, said the currency change by the government was a welcome development.

Ibe, however, said that the non availability and accessibility of cash by citizens was a great challenge and an inflationary threat to the country.

He said, “the only mistake they are making is not ensuring cash is available. If it is available and within reach, inflationary threat will be reduced.

“But for now, there is no money, people are not able to buy what to eat. We should be entitiled to our money if we earn it.

“If things are well, it will bring down inflation and bring down our appetite that has been so wetted.

“So government should Increase the quantum of money available, make it available, make it accessible, remove the impediments and obstacles in accessing money. ”
Prof. Samuel Odewumi, Immediate Past Dean, School of Transport and Logistics, Lagos State University said the transportation sector was the most affected by the change in currency.

“The transportation sector is the most affected in this currency deposit.

“If there is any area we can use for illustration on how this thing has failed, it is mostly the transport sector.

“This is because you can go to the supermarket to buy all your stuff and pay through online but transport is not like that.”

According to him, how many people have Android smart phones to do transfer, how many drivers/riders have bank accounts? Our ICT are also not ready for this cashless policy.

“ Although in the world today, Nigeria is among the most cashless economy because our cash in hand to cash flow/cash release is about two per cent whereas America has 10 per cent.”

Similarly, Mrs Chinwe Uwaegbute, the National Publicity Secretary, Chatered Institute of Transport Administration of Nigeria (CIOTA), said Nigerians were not prepared for a currency change.

“The population is not totally prepared to receive and embrace this change.

“More so, lack/ limitation of currency in the system has so much impacted on transportation, making it difficult for people to move easily as they should,” she said.

According to Uwaegbute, lack of cash has also made purchases very difficult.

She said, “It is not just about the swap, scarcity of fuel has also burdened and made transportation difficult and expensive for Nigerians to afford.

“So we are looking up to the Federal Government to look at how best this can be well Implemented and funds to be readily available for people.

“And I think we all need to be given more time for people to accept it and accept the change. ”
Meanwhile, Mrs Agatha Samson, an Administrative staff in a private office said the lack of cash almost cost her the job she laboured for years to get.

Samson said she had tried to get cash from her bank for two days within the past week to no avail.

According to her, on the third day, she could not leave her house to work as she had no means of getting to work, no cash.

“It took the grace of God and interventions of some senior colleagues in my department for me to still retain my job in my office.

“This is because my boss almost lost a contract that day I was absent, because I was not available to present the documents needed for the project.

“This made my boss very angry and asked that a sack letter be issued to me immediately for my lack of competence.

“I really pray something is done speedily to make this new cash available for Nigerians, especially for middle class people like me, “Samson said. (NAN) (www.nannews.ng)

Edited by Ese E. Eniola Williams

By Ikenna Uwadileke

The Nigerian Investment Promotion Commission (NIPC) ,has reinstated its commitment to position Nigeria as a preferred investment destination.

The Executive Secretary of NIPC Saratu Umar, said this at the NIPC Stakeholder Engagement Forum/Business Meeting with the Diplomatic Community in Abuja.

According to Umar, the commission is strategising to increase attractiveness and branding to position Nigeria as a constant preferred investment destination of choice.

She said that NIPC was developing strategies to deepen Nigeria’s investment promotion drive critical for day-to-day problem-solving for established and incoming investors.

“NIPC recognises the role of the diplomatic community as critical stakeholders in investment promotion, considering that economic diplomacy is one of the pillars of the mandate undertaken by Diplomats in host countries.

“Not only do diplomats assist in delivering marketing messages to target groups of potential investors, they also manage relationships and provide the relevant information required for investors to make informed investment decisions.

“This has equally aided reinvestment and retention of investors within the aftercare strategy.

“We thank the diplomatic community for this mutually beneficial service to both the host country, in this case, Nigeria, as well as to their home countries.

“We also acknowledge that diplomats and international development partners have successfully channelled the views of investors about the investment climate of Nigeria.

“This is by working in tandem to meet mutually beneficial goals, especially through their support in policy advocacy.

“All of these remind us that investment promotion rests on good teamwork between the National Investment Promotion Agency, the embassies/diplomatic missions, and other stakeholders to ensure a win-win situation,” Umar said.

The NIPC boss emphasised that Nigeria was a resource rich country with great potential, saying “it is indeed a compelling investment haven, with opportunities too numerous to count.

“The fact that these opportunities are yet to be fully harnessed presents astounding opportunity for investment, and this brings on the role of investment promotion to attract Foreign Direct Investments (FDIs).

“It will also mobilise Local Direct Investments (LDIs) for mutual benefits to both the investor and their home countries on one side, as well as to Nigeria, on the other.

“The global FDIs market over the last decade has become very competitive and versatile.

“This is where the investment promotion thrust of successful jurisdictions with the largest global market share of FDIs inflows are driven by effective, efficient and performance driven Investment Promotion Agencies (IPAs).

“With more than 170 IPAs worldwide competing to channel FDIs to their different countries, a compelling imperative is established that NIPC is positioned to ensure that Nigeria gets a fair share of this global market.

“The commencement of the Africa Continental Free Trade Area (AfCFTA) also makes it imperative for Nigeria to enhance its investment promotion drive.

“This is to remain the constant preferred investment destination of choice,” she said.

Umar expressed the hope that the forum would usher in renewed concerted efforts that would place Nigeria and other countries on the path of sustainable prosperity.

Present at the business meeting were the Minister of State for Foreign Affairs, Amb. Zubairu Dada, Ambassadors and Heads of Missions to Nigeria, development partners and representatives from Ministries, Departments and Agencies (MDAs). (NAN) (www.nannews.ng)

Edited by Ese E. Eniola Williams

By Ikenna Uwadileke

The Rotary Club of Abuja Imperial, has urged community leaders to convey the message of peaceful coexistence among their followers irrespective of religion, political affiliation and cultural differences.

Mr Adedotun Amori, Charter President, Rotary Club of Abuja Imperial, made the call at a one-day community dialogue on sustainable peace building and conflict prevention on Saturday in Abuja.

The News Agency of Nigeria (NAN) reports that the dialogue session is focused on sensitising community leaders on the imperatives of peace before, during and after the 2023 general elections.

Amori said that peace is critical in the development of every society, adding that the essence of this dialogue was to educate people to eschew violence and embrace peace always.

“As part of Rotary’s cardinal area of focus, we decided to bring the message of peace building and conflict prevention to the people of Kadokuchi.

“We have had the opportunity to speak with the community leaders on effective communication in resolving conflicts, practical and easy ways to promote peace in our communities and ensure conflict prevention.

“We have also discussed with them on the essence of security as we approach the next general elections and the need to uphold effective leadership qualities as necessary tools towards building sustainable peace in our communities,’’ Amori said.

Earlier, the resource persons emphasised the need for the community leaders to promote actions and ideas that would entrench peace in their various communities.

Ms Bukola Shaba, a communication expert, urged them to use effective communication as a tool for conflict prevention and resolution in their communities.

Shaba encouraged them to demonstrate love in handling situations within their families and members of their communities.

Mr Babayemi Olaniyan, Lead Partner, Lehi Attorneys, in his presentation titled “Practical Ways of Promoting Peace in the Community’’ urged the community leaders to always appreciate individual differences among their subjects.

Olaniyan said it was important for them to understand individual differences as people interpret things differently.

“There are intra personal conflicts and inter personal conflicts and once you are able to understand these conflict areas you will be able to understand people.

“Like the onion model, the onion has different layers; once you keep on peeling off the external parts you gradually get to the inside of the onion and that is how human beings are.

“You see them from the outside and they give you a different perception of who they are but if you check deep you see the kind of persons they are, their desires and their fears.

“And once you understand that about human beings you will be able to prevent conflict.

“As community leaders they are constantly engaging with community members so the best way to prevent conflict is to understand who they are dealing with.

“Once they understand who they are dealing with it helps them manage issues better,’’ he said.

Dr Funmilayo Oyefusi, urged the community leaders to explore effective communication process to promote peace in their various communities.

She urged them to always embrace dialogue, noting that mutual respect is critical in ensuring sustainable peace and conflict prevention.

Oyefusi urged them to demonstrate confidence, integrity and ability to influence others.

She tasked them to show determination towards peace, be socially friendly and initiate pro-active measures to forestall negative occurences.

On his part, Dr Olukayode Obayomi urged the community leaders to promote the security of their communities, particularly during the elections.

Obayomi urged them to ensure social and personal peace among themselves that would promote peace in their families and the society at large.

“Always ensure personal peace to promote peace in the community and to have that inner peace you must be law abiding.

“When you start with yourself as an individual, then peace will reign in your community,’’ he said.

Obayomi further urged them to be contempted with what they have and put measures in place to check those who cause trouble in their communities.

She advised them to avoid being used by politicians to cause violence during elections, Obayomi urged them to be more security conscious.

“You must secure yourself to be able to secure others and ensure we have contacts of the security agencies to reports any criminality,’’ he said.

The District Head of Kadokuchi Community, Suleman Dodo, commended the Rotary Club for the sensitisation programme.

He said that the essence of peace and security cannot be overemphasised, particularly in elections period.

Dodo said that the programme had expanded his knowledge on how to sustain peace and prevent conflict in his community.

“I am very happy about the enlightenment to my people and we will build on this to ensure that our community remains peaceful,’’ he said.

Dodo urged Rotary Club to sustain the efforts in other communities to ensure that peace reigns in the communities.

The district head of Kadokuchi urged the electorate to be peaceful during the elections and vote credible candidates who will entrench good governance.

He urged the people not to allow themselves to be used as thugs during the elections.

NAN also reports that 40 community leaders participated in the dialogue.(NAN) (www.nannews.ng)

Edited by Joseph Edeh