![[Opinion] Ifeanyi Ubahs strong case for deregulation](https://nairametrics.com/wp-content/uploads/2015/06/Ifeanyin-Ubah.jpg)
The constitution of the Emergency Economic Team by President Buhari to tackle the problems of the Nigerian economy was initially seen as a step in the right direction. However, some months down the line and many Nigerians cannot readily say the same.
The academic juggernauts on the team seem to remain as confused as the ordinary Nigerian on the street as to measures required to save the plunging Naira, stimulate economic activity and revive the nation’s economy.
However, not Dr. Ifeanyi Ubah, Managing Director of Capital Oil and Gas. He had come out earlier this year to say boldly that he would crash the exchange rate from N400/$1 that it was then to N200/$1 if consulted. Of course, he was not consulted. How would it look if all those economic ‘experts’ eventually had to go see Ubah for solutions? Since then, Ubah has kept his proverbial cat in the bag.
Now, though, Ubah, has decided to let the cat out of the bag and give suggestions on best to remedy the flailing exchange rate. He gave 2 suggestions that are shockingly too simple to comprehend, yet make a lot of sense.
First, Ubah identified the biggest forex consumer in Nigeria today as the Petroleum Product (Downstream), which is responsible for over 75 per cent of the forex that Nigeria generates. To attack that forex demand, Ubah says all that is needed are 10 modular refineries each of which should cost around $200 million dollars.
With $2billion dollars and these 10 refineries in place, the downstream petroleum sector will not need to import refined petroleum products and hence not need forex again. With that, 75% of the country’s forex demand is gone. As for their management, Ubah said that oil companies and the government should come together to make strong management teams for these refineries.
The second necessary step Ubah revealed is the need for the EFCC to ‘face their business’. According to Ubah, most rich Nigerian men are lazy and depend on waivers for their wealth. Most only access forex and move to foreign countries only to return with the same dollars without doing any meaningful business with it.
“If the EFCC can be able to look into every importer accessing dollars and what our dollars are being used for. If the EFCC can create an economic code that everybody that must access dollars should bid through the EFCC and then everybody must sign a guarantee, a bond that government can look into whatever he has bid with the money before he bids it, those that are milking Nigerian dollars will run away” Vanguard quotes Ubah as saying.
With these 2 simple but direct steps, Ubah says Nigeria’s forex problem will disappear like smoke in air. If this is say just 50% true, why have Madam Adeosun and Mr Emefiele never thought of them? Well, probably because Ubah really is not an ‘eceonomic expert’. But then, right now, Nigerians need results, not experts.
makes sense if true, especially the petroleum products importation part, very good read, would love to hear Adeosun or Emefele give comments on this
What a dept of wisdom. Kudos to Ifeanyi Uba
WRT suggestion 1, It’s a no brainer and Ubah is on point but the government for whatever political clevages or selfish interest it has will not do it and have denied at least a number of relatively unknown professionals and businessmen who were willing to do this at their OWN cost the licence. They will rather sell $7 billion from the country’s reserves at artificially priced exchange rate over a period of 3 years to fund one single project by someone that is known to the political class even if it means giving such person guaranteed leverage to do so. Furthermore, they will prefer to spend the same $200m or multiples thereof to do TAM on exisiting Comatose refineries than just let well meaning people do the modular refineries from private funds. It’s the psyche of the continent.
Bloody rubbish,methinks.if you looks at stats,you find the the importation refined oil into Nigeria is a a drop in the the ocean on what Nigerians import from abroad.VERY SOON ABOUT 5 OR 7 NEW OIL REFINARIES TO BE BUILT IN NIGEIA IN ABOUT 10 YRS, REMEMBER ALHAJI DANGOTE IS THE PROCESS OF SECURING FINANCE FROM THE CHINESE.in other word Nigeria will consumes more than 2 millions barrel in about 10 yrs or 15 yrs,due to projected increasing population and economic growth.
In future the country will have energy crisis in future,only new technology will save Nigeria,but this new technology existOR IMPORT CRUDE OIL IN NIGERIA TO BE PROCESS IN NIGERIA. where will they import or get forex to pay for it ?
corruption in Nigeria is a symptom of (1)weakness of the human spirit.(2)bad governance and systemaic failure in govemental maladminisraion or operation (3)weakness of govt regulators and sanction against individuals who participates in corrupt activities.
secondly Nigeria uses oil to secures forex,vey soon another chicken will come to roost in Nigeria.if govt or bank have no vision,not to diversifies Nigerian economy orBUT TO PROVIDE AN ALTERNATIVE MEANS FOR NIGERIAN ACCESS FOREX BY ANOTHER ALTERNATIVE.if they have done about a year ago create this new dollarbond at least 100 billion dollar ,Nigerian financial instution will have fund to take international risks in international markets,which will enable Nigerians have a new vision,i.e go international.
A good soup needs time and a balanced ingrident,when you eat garri with soup,you gets carbohydrate and geucose from garri,you gets iron,potassuim,magnese from some vegetable,you get protuiem from meat,you get a balanced diet,you gets some product from oil onion,tomatoes,which is good for your body.onions is good for your blood enrichment.when HIV was raging south Africa,their president then Mbeki advocated to uses of massive usuage onion by south Africans,of which some medical scientist questions Mr Mbeki medical credential,
Personally,i have no opinon on hiv,to me the human body is more than scientific analysis,it involves the spirit,the bone and the flesh,the spirit controls and regulate the chemical,which provides the boost and the body to performs.to me I try to give more powers to my human spirit,because the human spiit gives knowledge and insight or wisdom,to me what happened in south Africa is the compressing of the black African human spirit by their colonizer for so long