Posts in category: Editorial

For quite sometimes now, Nigeria, the economic powerhouse of Africa, has been grappling with  some challenges, which include unemployment, low capital, poverty, inflation and insecurity,  in some parts of the country. But, inflation, so far, has been the most formidable of these. Today, it is a challenge that threatens the country’s stability and growth – inflation coupled with a foreign exchange crisis. These twin crises have far-reaching implications for the country’s economy, its citizens, and the broader regional landscape. Addressing these issues demands a multifaceted approach, grounded in sound economic principles and political will by President Bola Ahmed Tinubu and his team. There is need to look the free market principles now if Nigeria must survive inflation woes.

With a gap of over 6percent between core inflation and headline inflation, inflation in Nigeria is no longer creeping. It is walking!  With the removal of fuel subsidy by President Tinubu on May 29, 2023 when he took over power, prices of basic commodities have soared to alarming levels, especially in the last one year, seriously eroding the purchasing power of the citizens and putting pressure on household budgets. Worryingly, it seems the Central Bank of Nigeria (CBN) under Dr Yemi Cardoso is not working hard enough to ensure stability in the economy, on the two legs of the term-price stability and foreign exchange stability.

The root causes of this inflationary surge are multifaceted, though subsidy removal is the major catalyst. Others include supply chain disruptions, fiscal mismanagement, and external shocks such as the Russia-Ukrainian War. The unchecked printing of money by the Federal Government, under former President, Muhammadu Buhari, to finance its expenditure has further exacerbated the situation, fueling inflationary pressures.

The consequences of runaway inflation are dire. It diminishes the value of savings, discourages investment, and undermines consumer confidence. Moreover, it disproportionately affects the most vulnerable segments of society, pushing more people into poverty and exacerbating social inequalities.

While inflation rages on, Nigeria faces a foreign exchange crisis, simultaneously. The transition to floating exchange rate seems to have created more problems than when the country was in fixed exchange rate regime, characterized by a widening depreciation of the Naira. This reflects underlying weaknesses in the country’s external sector, including declining oil revenues, limited export diversification, and persistent capital flight. As a result, businesses struggle to access foreign currency for essential imports, hindering productivity and stalling economic growth.

The scarcity of foreign exchange not only hampers business operations but also undermines investor confidence and deters foreign direct investment. It creates uncertainty in the market, leading to speculative activities and further depreciation of the local currency. To address this crisis, government must pursue policies aimed at bolstering its foreign reserves, promoting export-led growth, and enhancing investor confidence through transparency and stability.

Telescope Magazine believes that resolving Nigeria’s inflation and foreign exchange crises necessitates bold and decisive action on multiple fronts. The government must prioritize fiscal discipline, curtail excessive borrowing from the Central Bank of Nigeria through money printing, and pursue structural reforms to enhance the efficiency of the economy. Additionally, there is a pressing need for greater transparency and accountability in the management of public finances to rebuild trust and confidence among investors and citizens alike.

Furthermore, President Tinubu must pursue a diversified economic strategy that reduces the country’s reliance on oil exports and fosters the development of non-oil sectors such as agriculture, manufacturing, technology and support for activities that can support youth employment. This diversification will not only enhance resilience against external shocks but also bring in more foreign exchange, and create new opportunities for growth and employment.

In conclusion, Nigeria stands at a critical juncture, grappling with the formidable challenges of inflation and a foreign exchange crisis. Addressing these issues requires a concerted effort from policymakers, businesses, and citizens alike. By embracing prudent economic measures, fostering innovation, and promoting inclusive growth, Nigeria can navigate through these turbulent waters and emerge stronger and more resilient in the global arena.

2023 is an election year in Nigeria. It is a crucial year as it marks a year of transition in government. It marks a year of a new beginning. And any new beginning brings its share of optimism and expectations of bigger and better things. And 2023 is no different. From the family homes to business houses and the corridors of power, 2023 has arrived with similar optimism and expectations for greater achievements, success and prosperity.

Happily, President Muhammadu Buhari has given hope to this year, reassuring that everyone can look ahead as a nation, and a community with confidence. But as the 2023 general elections draw near, the extent of untrustworthy information on social media is concerning. And something needs to be done to tackle the menace.

Of course, Nigeria has been through very tough times, and there are challenges that remain as we inch towards the February 2023 General elections. There is a greater need for online news outlets and social media users to take responsibility, just as there is need for more infrastructure development and social services delivery by government in the states and local government areas.

Of course, social media help us share information, ideas, personal messages, and other content. But our information system, some say, is polluted. Every day, misleading stories, schemes, fabricated images and videos travel via our information streams online.

In fact, we live in an age of information disorder, an age where we see people deliberately pushing out false information; this is known as disinformation. When this content is shared further by people online who don’t realise it is false or misleading, this is what many call misinformation.

These agents of disinformation are only successful because we have a tendency to mindlessly share content without checking whether it is trustworthy or not. Without additional sharing and amplification, many rumours and conspiracies would wither and die. Cases involving slanderous comments against another is increasing. And it is time, social media users learn and take responsibility for what is posted.

Generally, when using social media, it is a common assumption that all users are solely responsible for their content – including posts, comments, likes, shares, tweets, and retweets, follows and favourites. Now many Nigerians who have smart phones are becoming more and more addicted to posting, tweeting, viewing, responding, opining, and sharing online—and what’s going to come of it all?

As a general rule, nothing on social media is private. And the extent of untrustworthy information on social media is so high. It gives cause for concern. The cause for concern is not surprising given that a good number of Nigerians rely heavily on social media for news.

Until the early years of the 21st century, crimes tended to be committed away from the eyes of the majority of society, with traditional media broadcasting information about them often on their own terms. Print media like newspapers build relationship with their readers based on reputation.
They establish this reputation by carefully checking information before publishing it. On social media, however, there are no editors, which allows all kind of content to spread without control.

While social media allows us to share our perspectives, ideas and concerns (as well as pictures of our favourite meals), the development of social media has also given rise to a new form of aggression. Cyber bullying is a very real phenomenon that can cause significant distress and psychological damage, especially to those most vulnerable among us. There have been numerous stories of young people who died by suicide after being severely bullied online.

Social media will most certainly continue to play a major role in our society for the foreseeable future and online conversations will continue to shape the attitudes, identities and behaviours of our children and their children. It is here to stay. Our job is to use it to enhance and improve our lives and to teach our children to do the same

There is little we can do to prevent people creating fake news or publishing disinformation. But those of us who use social media can take action to slow down its spread by becoming more aware of what we share. Government, too, should come down heavily of apostles of fake news to prevent them from creating troubles during and after the February 25^th Presidential elections.

President Muhamadu Buhari recently honored some Nigerians who have shown that a good name is better than gold. Of course, national awards are opportunities to melt down the cultural, tribal and ethnic differences and blend all to national unity. The honorees came from both the public and private sector and the general public. These included people like senate president, Senator Ahmed Lawan, the Chief Justice of Nigeria Justice Olukayode Ariwoola, Prof Tijani Mohammed Bande, Dr Ngozi Okonjo-Iweala, Tanko Mohammed, Hajia Amina Mohammed, Hon Femi Gbajabiamila, Tony Elumelu, Herbert Wigwe and others.
Senator Lawan, Justice Ariwoola, Prof Bande, Dr. Okonjo-Iweala, AlhajiMohammed and Hajia Mohammed were all conferred with Grand Commander of the Niger (GCON)
Some senior public officials were awarded Commander of the Order of the Federal Republic (CFR) .Those were 54 in number among them are the late Abba Kyari, former Chief of Staff; the late Ibrahim Attahiru, former Chief of Army Staff; Monica Dongban-Mensem, President of the Court of Appeal; Oladayo Amao, Chief of Air Staff, Isah Jere Idris, the Comptroller General of the Nigeria Immigration Service (NIS) and Controller-General of the Nigerian Correctional Service, Haliru Nababa, among others.
Others are Commander of the Order of the Niger, CON, 67; Officer of the Order of the Federal Republic, OFR, 64; Officer of the Order of the Niger, OON, 101; Member of the Order of the Federal Republic, MFR, 75; Member of the Order of the Niger, MON, 56; and Federal Republic Medal, FRM 8.
Among these was the Imam who sheltered more than one hundred Christians in his compound, saving their lives from Boko Haram people.
Among them also were two ordinary, everyday people of sterling character: a security guard, Mallam Musa Usman, from Jigawa State; a cleaner, Ms. Josephine Agu, from Imo State, and a bank security guard, Ogbanago Muhammed Ibrahim, were on the list of 437 nominees for the 2022 National Honours Awards. They were awarded Federal Republic Medal (FRM) II.
Agu works as a cleaner at Murtala Muhammed International Airport, MMIA, Ikeja. She’s being rewarded for her honesty and integrity in returning $12,200 she found in a toilet at the airport, ditto Ibrahim who found and returned $10,000.
In a similar development, President Buhari also presented SP Daniel Amah with a Public Service Integrity Award for displaying exceptional courage and integrity in the discharge of his duties. Amah, an indigene of Plateau State, received the award by President Buhari in Abuja at the 4th National Summit on Diminishing Corruption in the Public sector, with the theme, “Corruption and the Education Sector.
Amah, a Divisional Police Officer (DPO) in Bompai Kano, rejected $200,000 bribe to sweep under the carpet a case involving one Mr Ali Zaki, a bureau de change operator, who connived with other criminally minded individuals to rob a Nigerian (name withheld) to the tune of $750,000.
These people are true ambassadors of Nigeria. They have shown us something: Money should not be the motivation for work. The motivation for work should be for adding value and producing quality goods and services for a better society. They have proved that this is one mindset that should be discouraged if we will become respected as a civilized and developed society.
Money is good and should be appreciated as a by-product or compensation for any honest and quality work. Money is not evil as many people may wrongfully think. It is the love of money that is the root of all evil conduct. The focus on money as the reason why people go to work is the biggest reason why there are lots of substandard products, unprofessionalism, bribery, corruption, theft of government properties and resources, and many illegal dealings.

Public servants and private sector employees tend to solicit money in exchange for goods and services when money becomes the motivating factor of their work. In our society, it has become prevalent that wherever you go to most government offices or private sectors for any services, money has to be exchanged to acquire what rightfully belongs to you or to attain something quickly without following the normal process.

The frequent words that you hear when money is the motive is: “come next week” or “it’s still in the process”. Services are delayed or withheld for a long time until there is an exchange of money that takes place under the table. This is happening in most government ministries, at different levels of government-Federal, state and local.

Money is exchanged hands when recruitment is being done into the public service. Teachers seeking for positions in a public schools are being forced to part with money. Their applications won’t be considered until they include a certain amount of money.
In commercial banks importers seeking forms, M or form Q go through hell to get foreign exchange at government’s official rate. Such practices are many which is the reason why we don’t see much progress in our development as a nation.

Our public sector workforce consumes a large portion from out national budget every year in salaries but there is little to show on the ground. Despite our abundance of natural resources, we still lack in many aspects of development and essential services.When the focus of work is not about selfish gain but cantered on truly serving people and making their lives better, real development begins.

Our attitude towards work must be radically changed in order for positive progress to take place.
Money is not the most important benefit of work. Work has more benefits than just earning wages. For instance, we work to realise our hidden potentials. Work, therefore, is the paramount key to discovering yourself, but integrity at work holds the mirror with which society sees us.

Work is the divine provision God has given to every man through which we can provide for our needs including the needs of our families and to resolve national issues.
So until we start working responsibly to contribute meaningfully towards a better society that we all desire, then we will miss being honoured as well.

The recent importation of contaminated fuel into Nigeria, which was reported to be about 100 million liters, is not really unfortunate, it is shameful indeed!  Where were those supposed to inspect the imported toxic fuel when it came in? Who and who conducted inspections? Where were the inspectors? Apart from exposing Nigerians to untold hardship and damage to many vehicles, including high-end ones. This has visited a very sad experience for many vehicle owners. And it has equally caused the Federal Government several billion as well.

We would like to point out some more issues related to the corruption of staff of regulatory agencies. As has been observed for long, all regulation points seem to have become theatres of corruption and extortion in Nigeria. Because of this, so many businesses, especially SMEs, daily face dehydration. This should be looked into with appropriate punishments put in place.

Regulatory agencies are supposed to nurture SMEs to ensure the continuous thriving of business in terms of meeting standards for the market and

making the environment conducive for them. But in many cases, this is lacking. One could see a regulatory

landscape riddled with corruption and harassment of SME businesses. The consequences of these are loss of revenue, both to the business enterprise and government.

After sending staff to the field, regulatory agency heads should properly monitor their staff to make sure no games are being played.

There are many incidents where the staff of these regulatory agencies regularly harass and extort businesses, that are not aware of how to tame them. For instance, those in charge of the environment never let the new entrants in the fumigation business, for example, know all that is needed. Look at the water-packaging business for example. Many NAFDAC staff never let the new entrants into the water business know all that needs to be done initially. They will hide away the information on laws guiding such businesses, allowing the business owner to dig boreholes without telling him to first get the environmental staff to do what they need to do. Rather they allow some loopholes to exist. Then they continue to exploit these loopholes for their own benefit.

Regrettably, some regulatory agencies have now turned to revenue-generating agencies. And as they do this, their activities begin to negatively affect the SMEs. This affects their revenue, and equally deprives the government of much-needed revenue.

The regular monitoring of regulatory agencies’ staff is of paramount importance. Their corruption is killing businesses and depriving the government of revenue. Consequently, heads of regulatory agencies should be responsible for the corruption and misconduct of their staff. The senior personnel on the field should understand the seriousness of their responsibility. To these corrupt staff,  corruption seemingly offers the right tools for them to construct their own future, taking advantage of business owners and depriving the government of huge revenue. We believe this reflects poorly on the regulatory agencies. If proper action is not taken to punish those expected to conduct oversight functions on the “devil fuel” recently brought into the country, such kind of incidents will be repeated.

We call on the Independent Corrupt Practices Commission (ICPC) to have some dedicated lines so entrepreneurs can know who to report to. Also, heads of regulatory agencies need to effectively monitor the activities of their staff and educate the public on what needs to be done, creating regular awareness to prevent undue exploitation and killing of businesses as well as revenue loss to the government.

Engr Fidet Okhiria, the Managing Director Nigerian Railway Corporation (NRC), said recently in an interview that the corporation needed about N61.5 billion to carry out maintenance of its facilities in 2022. This is occasioned by vandalization of critical railway assets by vandals.

These vandals have destroyed and stolen multi-billion naira equipment in at least 66 major attacks on the facilities of the Nigerian Railway Corporation in the last ten months. The items stolen and carted away include railway slippers, tracks, nuts, bolts, cables, racks, weld-shear, rods, puder and other accessories.

These vandalzation, which in most cases force the cancellation of train services in the affected routes, took place across eight states and the Federal Capital Territory (FCT). These include Nasarawa, Kaduna, Benue, Enugu, Niger, Plateau, Ogun, Delta, the FCT and Rivers State.

The Port Harcourt-Aba rail attack led to the temporary stoppage of train services on the rail line. The attack on the rail line took place caused the train to derail at Umuzohia area of Oyigbo in Rivers State, a situation he said to be “so dangerous” because of the bushy nature of the area.

Data obtained from analysis of reported vandal incidents revealed that these attacks happened between January and September 2021. Most of the vandalized railway property are sold in black markets, making the corporation lose billions in replacement, maintenance and repairs.

Investigation revealed that federal capital authorities was forced to indefinitely suspend the multi-billion Abuja Metro Rail Line after its track was vandalized 48 times. The 42-kilometer standard rail gauge, which is  the first rapid transit system in the country and in West Africa and the second such system in sub-saharan Africa (after Addis Ababa Light Rail), was launched on July 12, 2018.

Transportation systems such a railway network facilitate the fast movement of passengers and freight and are crucial for societal and economic welfare. An essential part of modern societies, it is expected by the general public that transport systems operate at all times reliably. For railway networks, an isolated event can lead to the disruption of all traffic in this railway section, cascading and fundamental indirect effects resulting in economic losses are possible

However, the rising ugliness of railway tracks vandalization and attacks on railway tracks in some parts of the country is a surprising, sad and complex situation.

Therefore, the risk management within the railway transportation in Nigeria cannot be handled by NRC employees and police alone.  Protecting railway critical assets has to be aligned with public risk management strategies in many places. Because of this,  Engr Okhiria has to put on ground strategy to kick-start such partnerships.  And vital cooperation between various stakeholders at different  levels are needed. Thus the NRC has to cooperate with local governments and settlements along railway tracks, security forces, local hunters,  local vigilante people, the National Orientation agency. Then drones should also be deployed to monitor the rail tracks.

Climate-induced Migration Government needs to urgently address farmers/herders clashes and climate-induced migration issue seriously. In recent times, farmers/herders clashes have grown in scale and frequency, with much destruction. The question of grazing reserves should be considered quickly while climate action-plan put in place. There is no doubt that the farmers and Fulani herders palaver is mostly climate change induced, and it has taken on a dangerous new meaning and dimension in recent times.

The scenario in the South-west is scary, especially in Oyo state where the home of the Seriki Fulani was destroyed- dragging towards a tribal warfare.

The continued attacks on a people for the crime of belonging to an ethnic tribe should not be allowed to continue.  While senseless murderers pre-dating their ancestors in mentality but armed with 21st century weaponry should be tracked down and dealt with, the Fulani communities in different parts of Southern Nigeria must never be allowed to be molested. Fulani herdsmen have existed in the South-west for a very, very long time. For ages, they have lived peacefully with others and integrated into many local communities through inter marriages. They are disciplined, proud, brave and hardworking people with integrity and kindness as national values. So calling them kidnappers or, Jihadists does not hold water.

How can the senseless killers and kidnappers really be our own Fulani herders?  What can possibly be the justification for Fulani herders to kidnap or slay human beings without provocation? Where there was at least respect for lives of people not directly involved in conflict, there is no longer any rule of warfare applicable. Can it be true that local Fulani herdsmen are involved in these atrocities, even where there is no clash between them and farmers? Truth is, there is absolutely none!

Drought and desertification caused by climate change have been parts of their problems in recent times. Added to this is the encroachment on grazing routes. That is a horrific combination indeed.

Climate change is already displacing many people across the world, forcing them to move to other areas and regions in search of survival. Increasing desertification in the sahelian region is putting pressure on access to water and grasses, taking away the living space and sources of livelihood of millions of people.

With Lake Chad shrunk by 75 percent, there is really a problem in the land! This has combined with banditry and insurgency to create a double jeopardy for herders and farmers alike, forcing more people to move from their ancestral homes to other areas with clement climate condition. The number of people being forced to move southward  by climate change and global warming is about three times higher than the number of people leaving their homes due to violent conflicts of Boko haram insurgency and banditry in some parts of the North.

Population migration forced by climate change has already become one of the major crises of our times. In the particular case of the Fulani herdsmen, the encroachment on grazing routes by farmers and property developers is the primary cause of their clashes with farmers. Till recently, however, this was being viewed as a peripheral concern by the Nigerian Government, military and security think-tanks, academia and the strategists. They did not put this on scenario building on time. Now the frequency of clashes and their sheer size,  has brought it to the fore as one of the most critical issues on the national political agenda.

This fast-emerging crisis demands an urgent action, a re-look at the conceptual fiat of the term ‘killer herdsmen’ and engaging in a sincere and coordinated effort to make the necessary adjustment by host communities and genuine cattle breeders.

A coordinated action is needed to motivate and implement a practical approach to address this crisis as well as the climate refugees’ inevitable and growing challenges.

Governments, traditional rulers, town unions and other key stakeholders need to engage host communities, help herders lead productive lives, and work for safe and dignified existence. The concept of rural grazing area (RUGA) put forward by President Muhammadu Buhari should be considered in the interest of all.

Farmers/herders clashes have dragged on for so long, and have led to attendant loss of lives and  destruction of crops. If permitted to drag on or escalate further, it can lead to tribal warfare. Such a warfare will certainly affect investments in the country agricultural resources: there would be food shortages as farms and animals would have been destroyed as well in the prolonged conflicts.

This year, citizens of this country celebrated 60 years of political independence that was achieved without any blood, sweat and tears. In the ensuing years, Nigeria has faced many challenges of nation-building and survived several major political crises, including a 30 months civil war, that have threatened its existence and system of government.

In the eyes of the world, Nigeria has had a pretty good run without the kind of political, social and economic upheavals that have beset and ruined many nations in recently and in the past. Nigeria may be the envy of many developing countries, but the country faces other serious issues that threaten to dismantle its democratic processes and institutions. These include insecurity and other law and order issues that have the potential to cause collateral damage to our system of government and the economy.

The killing of 45 rice farmers in Borno state and the abduction of over 300 students of Kankara Science Secondary school in Katsina State top the list of the terrible security problems of recent times. Urban cultism , apart from other Law and order issues,  have  also been a thorn in the side of successive governments for sometimes now. The Federal Government has to move quickly to address them, not just using the security forces or enacting tougher laws and penalties for serious crimes. Despite these commendable initiatives, insecurity and law and order issues continue to seriously affect government processes, business operations and community activities throughout the country.

The National security adviser, the DG of the SSS , the IG-P and other stakeholders should  come up with better initiatives. President Buhari himself has spoken about the need for traditional rulers being part of the security engagements to ensure amicable and long term preventive measures. We add here that the traditional institutions be strengthened to effectively play this role. And every citizen must see security as his concern, too.

In addition, government should immediately begin a process of attaching security personnel to schools, as done in the 1980s. Security undercover agents should be recruited to survey different blackspot areas, CDAs and CDCs should monitor unnecessary gathering and strange movements in their own environment.

After 60 years of independence, problems of law and order remain the single most important issue on the agenda of public debate in the country.

The recent spate of violent crimes, and clashes, some of which resulted in deaths in the country has left many in urban centres and indeed throughout the country in a state of fear, apprehension, and unease. The vicious destruction of property and the injuring and damage of, in many instances, innocent individuals are reaching a stage where the shock of such incidents quickly dissipates from public consciousness after a very short period of time.

Dare we say it, we are live in a state fear but also of indifference and apathy.

We now live in a suffocating and restrictive situation where no one is truly free: to coexist, and conduct their business without the need to constantly look over one’s shoulder at every turn.

Core among the reasons for this decline in living a relatively tranquil, harmonious and peaceful existence in Nigeria is the relative absence of the law and law enforcement. Not a week goes by that we do not hear of youths getting into trouble with the police over cultism, rape, violence and drug-related offences.Occasionally, we get reports of tragedies that result from urban cultism.  Violent flare ups in many areas of an average urban city, including Lagos the nation’s economic  capital  seem to have  become a normal narrative. This demonstrates a depressing lack of respect, not only for human life, but for the laws of the country which are there to regulate and control anti-social behaviour.

Surprisingly, CDAs and CDCs members know some of these boys, but refuse to do nothing, saying security is for police alone.  This is means we are our greatest enemies.

We therefore recommend as follows. CDCs and CDAs should own security of their areas and monitor the gathering and behavior of rough boys in the neighbourhood. It is about transforming the mindset to see and do things differently. We should develop great minds of people who can challenge the wrongs and create a solution path.

Attachment of security personnel to schools. Seeing security personnel attached to schools will drastically reduce urban cultism and make them be without much security issues and the area around schools will be trouble-free. This will give teachers and parents peace of mind that children and people are safe.

Unplanned settlements in many big cities- places such as  Lagos and Abuja-are increasing at an alarming rate,  and if not contained will pose a serious law and order challenge for the police. The youths in settlements and some suburbs dwell in an environment that is conducive to crime and lawlessness.

Crime is intoxicating for many of them and like a drug, it becomes an escape route for their miserable existence.

Above all, police must be adequately funded, trained, motivated and must be logistically capable of keeping the peace, maintaining Law and order and bringing to justice all.

It is no longer news that the plunging oil prices have increased pressure on the naira. since Nigeria produces less locally Africa’s largest economy exports mostly crude oil, but it spends its foreign earned currencies on supplies abroad for basic items such as food, wears, electronics, and refined petrol.

According to Nigeria’s foreign trade report, in 2019 alone Nigeria spent about Nl6.959 trillion ($47 billion) on imports compared to N 13.1 trillion ($36.5 billion) a year earlier. It spent about $28.7 billion on invincibles (spend on services such as professional fees, financial services, business travel, medical tourism, etc.)

This illustrates how Nigeria imports everything, and since it produces less locally, thereby increasing demand for the dollar needlessly; importers need American dollars to pay for goods bought abroad, causing depreciation of Nigeria’s local currency.

Though the disparity between the official rate and parallel market rates has narrowed to about 10%, the Naira is still experiencing pressure from the strong dollar.

As a result of this, the Naira has been tanking out as the greenback continue to draw many Nigerians who are moving their assets to dollar dominated assets, with it drawing strength from risk aversion. Since the start of the COVID-19 pandemic, the value of the American dollar has reached record highs, as many investors around the world are rushing to have a part ofit.

The sad part of the case for Nigeria is that the country is not seeing enough inflows of via the financial accounts that can help bridge the gap in the current account of the balance of payment. Right now, the country is looking to obtain over $6 billion in funding from World Bank, AFDB, and IMF as well as debt services relief on previous foreign debt. We believe the government is unlikely to obtain all the foreign borrowing it needs to plug the deficit.

If the needed amount of inflows is not obtained via external borrowings, FPI flows, or FD Is, the CBN could result to significant drawdown on reserves and may eventually bow to a devaluation when it runs out of armory to defend the Naira. Furthermore, a look at the Nigerian industrial sector shows that higher import costs, coupled with a fall in the foreign exchange reserves standing at about $33.9 billion as of 23rd April 2020, are increasing local production costs, spurring domestic inflation thereby depreciating the naira.

The case for further Naira re­ pricing is strong. Nigeria is facing a twin deficit crisis across its fiscal and current account books and these deficits are likely to get wider with the weak oil price and production. Given the trend in the oil market, the US (United States.) dollar rose against a basket of major currencies amid the sharp drop in oil prices, as investors move to haven assets. As lockdown continues and factories stay closed with travel restrictions, oil prices continue to dive lower due to low demand, it draws money from risk assets to the safety of the US dollar and its denominated assets. We, therefore, call on all to see protecting the Naira as a joint responsibility and cooperate with the government to bring down needless demand for dollar. This means we should curtail our consumption of foreign goods, increase productivity and export more.