- Lift Dollar Trade Restriction – The dollar trade restriction has to be lifted to avoid further damage to businesses. Alternatively, the Banks should be “empowered” to meet their needs. The 2,442 BDC’s should also be restructured and empowered based on capacity. We have to admit we failed in control, which led to the problems we face today (this did not start today), We now have to quickly fix control and save economy.
- Restructure FIRS – FIRS should work not as an “independent unit”, but with the Ministry of Finance and CBN (who regulates the Banks). The Bank verification may be gearing towards that and if it succeeds, good. Meanwhile, BVN is one of the ways the FGN has shifted responsibility to third parties. We have National Identification offices which should provide unique numbers you take to the bank and then the banks can verify your thumbprint to see if another number exists in the system. The office listed abroad by CBN for BVN is laughable. Spend $1,200 to fly to another city and do BVN?
- Peer Review– CBN should do a peer review and align with realities. I have attempted to do a general review of 8 countries, who have some level of petrodollar dependence (Russia, Colombia, Norway, Angola, Canada, Brazil, Mexico and Venezuela). Out of all these countries, only Nigeria is listed in the Lower Middle Income Group, while other are in either Upper Middle Income Group or High Income. Secondly, Nigeria has the worst Human Development Index in the group at 187 followed by Angola at 149…..yet miraculously, our currency has been stronger than all these currencies from 2013 to date)
- Strengthen Customs – Needs to further explanation
- Educate the public – Self explanatory
- Target policies that reduce tension in the system, but are firm enough to let Government “retain the steering”
- Give companies more protection – Target well established companies and empower them to assist in shutting down some imports. Eg. Dangote can be empowered to set up a tyre manufacturing company. It may not be in his plans, but with their business success and capacity, they can deliver. As opposed to Government running a plant, an established company will be empowered and we need not ban the items. If Dangote was appealed to 3 years ago to start manufacturing toothpick, nobody will be talking about toothpicks ban today. I have made this very simple but we need to think in that line. Rather than publishing the names of Directors of companies on newspapers and apologizing the next day, we need to look inwards and see if the companies failed as a result of carelessness(prosecute them) or as a result of “country risk” bail them out and empower the.
- Find out reasons for buying and selling of FX – CBN should also look into sources of FX and use, which includes State Government exchanging USD from asset sale with Emeka Dollar or Musa BDC. The 3 major sources of FX are FDI, FPI and other sources. FDI and FPI often get Capital Importation certificates as the cash are returned at some point, so from day one CBN takes charge. However, CBN has left “other” to other forces. These are the areas you regulate and score points and the economy wont feel a negative impact but an immediate positive impact.
- Corruption – On Corruption, the body language of Mr. President shows this can be solved however, without forensic investigators and well equipped prosecution, appointing saints as Judges and creating special courts for trying “corrupt” leaders will only lead to quick acquittal and discharge, as the saints will follow the law and due process (as expected). The air is filled with bias and the accused have been “judged” guilty before trial. Attempts to correct the impression are often met with stern opposition and labeling as pro-corruption. We need to get Nigeria right, even as we deal with corruption. Like I have always said, corruption is the crown of our problems, but the efforts at salvaging Nigeria should run alongside the efforts geared at returning our cannibalized resources. Thieves are also pointing fingers in a typical case of pot calling kettle black. We need to stop these media image murders and prosecute with evidence before the good-will fades. When the system get to work, under the leadership of “corruptions worst enemy”, corruption will take its flight. The law will take its course, the guilty will go to jail, etc. However, lets function first. There is work to be done.
The only thing Nigeria needs to do is start selling its Petroleum in Naira! It’s a one point agenda. Everything else is grammar.