Connect with us

Opinion

Cash Capture And The ‘Nudity’ Of Nigerian Depositors

Published

on

After two weeks of protests over the inability of Nigerians to withdraw and access cash in banks, President Muhammadu Buhari has reviewed the implementation of the naira redesign policy. From now till April 10, 2023, the old ₦200 note is to be recirculated into the economy as legal tender alongside the newly redesigned denominations. However, ₦500 and ₦1000 old notes ceased to be legal tender. Those still having them are to take them to the Central Bank office in their respective states. The President’s address provides a hint into how this reviewed strategy is oriented towards checking vote buying by politicians who may have stockpiled their homes with billions of the old ₦1000 and ₦5000 denominations. By rendering them illegal, politicians who are unlikely to have stored the ₦200 old notes may not find the latest presidential order palatable. There is a need for proper governance of the latest order so that politicians and banks will not hijack it again and suffer depositors.

About two weeks ago, a video of a semi-nude, light-skinned woman went viral on the internet. She was inside her bank to access her money but could not achieve her goal. After efforts to achieve her aim fell on deaf ears, there was nothing more to hide – she stripped herself. She lamented her inability to withdraw her money which has not allowed her children to go to school for two days. Left with bra and pants, this woman contested and angrily demanded that her account be closed and her deposit released to her. A few days later, the video of a man naked inside another bank went viral. Blended with messages of hopelessness and the futility of efforts to withdraw his savings to save his wife and children from dying from ill health and hunger, the nude-male protester proclaimed that he was frustrated to go unclothed after he had appealed to top executives of that bank without result. He wanted his ₦520, 000 naira which he saved with the bank released to him. He said “give me my money let me go. You frustrated me. You frustrated me. Give me my money. My wife is in the hospital…about to die. There is nothing again. How old are my children? Seven years, four years…give me my money. I don taya. And when a policeman was brought in, he said: If una wan shoot me, shoot me make I die. Let them bury me and make I forget the problems. Make dem shoot me make I die…. make I forget my wife, make I forget my children…make una shoot me. Give me my money let me go. If you see me here again, kill me. Let me go and take care of my family”.

Semi-Nude or total nude protests are not exclusive to Nigeria. It has been reported in Zimbabwe, Australia, South Africa, London and the United States of America. When getting justice in law courts becomes difficult people resort to protest to show displeasure and their unpleasant experiences with their inability to move/transport, purchase goods and withdraw money just because the Central Bank of Nigeria with the approval of President Muhammadu Buhari decided to redesign three denominations of ₦200, ₦500 and ₦1000. By protesting nude, these depositors not only show they have nothing again to hide, they also show how government policies affect the downtrodden who save little for trading and survival. It further shows the weaponization of the body for the extraction of action, and sympathy and ultimately halts an unpleasant event. Despite the fact that people in the banking halls were more interested in recording, observing and sharing their nude videos than covering them, the nude protesters challenged institutional authorities and imposed themselves on spaces they would not have dared. They represent millions of Nigerians who were tricked to deposit their money into the formal banking system before they were literally stripped, disempowered and rendered beggars to access their own monies.

That the President eventually reviewed his stance on the policy is a victory attributable to the protests within banks and those on the streets. Sadly, with the destruction of properties and loss of lives, protests are democratic rights to engineer social change. The protests brought to the fore the inner sufferings and feedback of a poorly implemented policy which presidential aides may not be able to tell the president. How do we ensure that those in hospitals who need care are not allowed to die because of loopholes in a currency redesign policy? What digital infrastructure has the CBN put in place for a smooth transition to digital payment systems? How do we strengthen security to check frauds and cybercrimes? How will people who cannot withdraw the new legal tender eat, transport themselves and perform other mandatory roles in their lives? Nigeria needs to learn how Kenya and countries in the global north are achieving this feat. India started this policy around 2016-2017 which they called demonetization with almost similar objectives as Nigeria. Today, India is experiencing remonetization with cash.

The Naira redesign policy of President Muhammadu Buhari and the Governor of Central Bank of Nigeria (CBN), Godwin Emefiele failed to appreciate the unintended consequences that come with the policy by not anticipating the massive informal economy that thrives on cash. The primacy of cash for economic, social and cultural uses in Nigeria needs to be appreciated in making interventions. In an international study with my colleague, the Acting Head of Marketing and Consumer Studies, University of Ibadan, Dr Oluwatosin Adeniyi, we found that uptake of digital naira in Nigeria was low because it failed to add anything new to the functions already served by existing payment systems. Indeed, we found that fear of fraud in a digital transaction, a largely informal economy based on cash, and poor digital infrastructure to support transition affect the uptake of digital naira and affect the drive for financial inclusion. The report of the global study can be found at https://dci.mit.edu/research/011323. Our findings align with what is happening to the naira redesign policy. Stories from those who have opted to use transfer or Point of Sales (POS) payment options are not different. It’s either the bank Apps are not working, or the transfer is hanging or not delivering. When you transfer, you have to wait for minutes for confirmation. God help you if your confirmation comes early but our research documented that some people had to wait for more than three hours! Furthermore, our study found that while some are receptive to accepting transfers, poor infrastructure challenges, fake alerts, and delayed crediting of accounts frustrated such acceptance. Traditional practices and the informal economy are still heavily cash-based despite the fact that young educated persons prefer transfers to old people who associate more with cash. When policy is poorly-conceived and badly executed such as this, it creates extortion opportunities to the extent that the Nigerian naira now operates in the black market!

Every policy must first understand what problem exists before designing the intervention. In the case of Nigeria, we have the cash-dependent, less cash-dependent and digital users within the financial space. Product and policy design must factor in these end-users. We cannot have one size fits all policy if our aim is indeed to include all and not exclude people. Poor understanding or appreciation of the variety of financial product users (including the financial literacy level, poor rural penetration, and unbanked populace) is what is driving the present crisis occasioned by the naira redesign policy. You cannot aim to drive financial inclusion by fraudulently bringing people in and denying them access to their money. What the CBN and banks have done is the tyranny of intermediary control and denial, a strategy used to lure people to deposit old naira into banks with the intention of not giving them access to their money as they would love to. It may also pass for cash seizure, cash arrest, cash-kidnapping or cash abduction simply because the owners now pay ‘ransom’ (using naira to buy naira) to be able to access a fraction of their money, usually at a loss! The ongoing crisis should teach the CBN that they underestimated the importance of cash in the financial ecosystem of Nigeria and failed to prepare for this backlash.

 

Dr Tade, a sociologist wrote via dotad2003@yahoo.com

Comments

Opinion

ECONOMY: When Will President Tinubu Sing A New Song ? | By Taiwo Adisa

Published

on

By

President Bola Ahmed Tinubu was on Tuesday represented at the 17th annual Chartered Institute of Bankers of Nigeria Banking and Financial Conference held in Lagos by Vice President Kashim Shettima. The headline of the story that came out of that event, as reported in the Nigerian Tribune, reads: “We’ve taken courageous steps to reform economic environment.”

In the body of the story, Tinubu, through his vice president, highlighted what he meant by the “bold steps” being undertaken to reform the economy. The president said: “Though painful in the short term, the removal of fuel subsidies is designed to free up budgetary resources for critical investments in infrastructure and social services, frequent adjustment of the monetary policy rate, a move aimed at curbing inflation and fostering a more market-oriented exchange rate system.

“We are expanding broadband penetration and encouraging the growth of tech startups through initiatives such as the Digital Nigeria programme. For example, we currently train three million Nigerian youths in digital technology and essential skills and then deploy them to innovation hubs. These efforts are designed to create jobs, increase productivity, and make financial services more accessible to Nigerians in all corners of the country. It is essential to state that we are committed to achieving a 70% digital literacy level by 2027 through innovative approaches in delivering initiatives, continuous collaborations, and stakeholder engagement.”

Many would say those words are similar to what we’ve heard before. However, some would have wanted the president to touch base with the streets upon his return from China. He led the streets for years. He spoke their language when jeun soke was the popular lingo. Is the president abandoning his true self? Some would ask.

I’ve quoted the president’s speech at the CIBN programme extensively to showcase what is fast looking like a dialogue of the deaf between the streets of Nigeria and their leaders. Some people spoke a while ago, shouting ebi n pawa (we are hungry). The people are still hopeful the Ifa and Opele of the president will say something good, but what they are hearing about broadband expansion or bold reforms in the economy is not close. Surely the hungry man would find it difficult to understand the drive of Mr President and no matter how nice the digital drive sounds, the words will only enter the ears of a hungry man through his right and disappear through the left. Even as the government is yet to address how it intends to end hunger, the NNPCL added another sorrow with the increment in the pump price of petrol. As we speak, the corporation has again stopped the flow of fuel and queues have resurfaced. The product is expensive, it is also scarce. The NNPC is insulting us to our face. Even those who have the money to buy have to be humbled to spend hours in the filling stations.

As the Tinubu message dropped from Shettima’s lips, Nigerians were wondering what was amiss. Here is a president who has before him the case of an NNPCL, which suddenly jerked up fuel prices without any concrete explanation, save for the confusion it orchestrated in the process. Here is a president who should have questions for the same NNPC about why it has failed to actualise the purchase of fuel from the Dangote refinery, one week after the products were ready for lifting. And here is a president whose national oil giant has continued to favour massive fuel importation and payment of fuel subsidy instead of supporting local refining of petrol and the elimination of all the fraud associated with subsidy. The President was away when NNPCL inflicted yet another fuel price increase on the nation. The uninitiated believed he wasn’t aware, but he had shut down such thoughts when he told Nigerians in China “Can we help it?”

It must be distressing to the uninitiated who believed that once President Tinubu landed in the country, he would hear something different, maybe something to soothe the hurting nerves. But the President is already proving to be a different person from who he was when he heard and spoke the language of the streets and when he knew that fuel subsidy was a scam that it is.

Looking at the unfolding scenario between the street and President Tinubu, it appears the circumstances painted by WB Yeats in The Second Coming is afoot. Yeats talked about the Falcon not hearing the falconer/Things fall apart, the centre cannot hold…I pray the street and the Villa don’t get anywhere close to the scenes painted in the last part of WB Yeats’ poem, which informed the writing of another popular novel by our own Prof Chinua Achebe, Things Fall Apart.

But some warning shots are already oozing out of the nozzles as the Aare Ona Kakanfo of Yorubaland (Generalissimo of Yoruba), Iba Gani Adams, last week fired some warning signals.

In an open letter to the president, Adams said the poverty network in the land was expanding. He said: “President Bola Tinubu, Time is Going. We have no regret that we were created to inhabit this geographical space in the West African axis of the African continent. Obviously, past leaders, since 1960, disappointed Nigerians with the way Nigeria and Nigerians were badly led and resources selfishly managed.

“When you came with the ‘Emilokan’ coinage…many Nigerians were persuaded that…you will perform better than Muhammadu Buhari. On May 29, 2023, the Naira to a Dollar was less than N740. Today, it is more than N1,600.”

“From the North to the South, East to the West, the rate at which Nigerians are being abducted… It was as if these bloodthirsty maniacs have just been unleashed on Nigerians from the hottest part of hell.”

He asked the president to reconsider the incessant increase in fuel price, adding that the increment in fuel price from less than N200 to over N1000 per litre, and the devaluation of the Naira at the same time were draconian policies Nigerians are finding difficult to cope with.

Adam’s advice to the government may indeed have unruffled feathers here and there, especially among the class of Yoruba, who believe that the government of Tinubu must be jealously guided like the raw egg, but I am with Adams on this front. The Yoruba are known for saying the truth, no matter whose ox is gored. They did it to Obasanjo. They did so to the military. General Sani Abacha’s government was not spared even when it had a Yoruba son, Oladipo Diya, as number two.

If the Yoruba should do anything other than tell the truth to the incumbent government, the whole basis of their activism all these years would have been vanquished.

But as much as we know, Tinubu is not a wicked human being. Not a few persons around can testify to his goodwill and disposition for shared prosperity. But the advertised reforms are not working. If the iron bender keeps hitting the iron on one spot, it means he intends to get something out of it. The people are crying about being suffocated by the IMF/World Bank-designed reforms. They are saying the same thing every day. It is not about partisan politics. It’s about their reality. Tinubu has promised Eldorado after the pain. They heard similar lines from Generals Ibrahim Babangida, Abacha, and Muhammadu Buhari. None of the orange trees nurtured by these men yielded sweet fruits at the end of their years. The sad thing about it all is that those who prodded them to whip the citizens with those policies -the IMF and the World Bank never apologised for their failures.

If we may ask, what happened to Buhari’s economic programme, ERGP? What happened to SAP and all sorts they had foisted on us through the different governments? The realisation has to come from within; only Nigerians can build Nigeria. The late Prof Sam Aluko told Babangida, he didn’t listen. Thereafter, those who claimed there was no alternative to SAP have since moved on to other acronyms. If we don’t intend to continue to run our country like outposts of some foreign nations, the president needs to sing a different song.

 

Continue Reading

Opinion

Who Will Save Nigerian Journalists from Slavery? | By Olaoluwa Mimiola

Published

on

By

Numerous obstacles in Nigeria’s journalism landscape compromise the reliability and efficiency of media professionals. A severe lack of financial support from media house owners has led many journalists to face undue hardships, often working without salaries for extended periods.

In some instances, journalists receive minimal compensation that is hardly adequate to meet their daily needs, let alone provide sufficient safety and well-being.

This precarious financial situation has engendered a sense of insecurity among journalists, who are often seen as the backbone of a democratic society. Despite their critical role in ensuring accountability and disseminating information, many media professionals find themselves in an increasingly vulnerable position. The high expectations placed upon them to maintain professional standards and deliver quality content only exacerbate the pressures they face. The emotional toll is significant; journalists grapple with anxiety, stress, and the fear of inadequate resources, which significantly affects their mental health and job performance.

Government and Politicians: Allies or Adversaries?

The relationship between Nigerian journalists and the government is complex and often paradoxical. Journalists find themselves navigating a precarious balance where their role as watchdogs is sometimes met with support and other times with hostility, depending on their alignment with governmental narratives. When journalists choose to report favourably on government actions or initiatives, they are frequently regarded as partners in progress, celebrated for their contributions to national development and public discourse. This perceived alliance usually fosters an environment where media professionals feel encouraged and safe to operate within the bounds of the state’s objectives.

Conversely, when journalists adopt a critical stance toward government policies, the dynamics shift dramatically. In these instances, they may be labelled as adversaries, with their work dismissed as baseless or harmful to national interests. This bifurcated perception reveals a troubling reality: the government often opts for a media landscape that echoes its narratives, while viewing independent investigative reporting as a threat. Consequently, journalists who dare to challenge the status quo may face various forms of intimidation, ranging from censorship to outright violence, undermining their essential role in civil society.

This relationship highlights the need for a thorough examination of how press freedom is upheld in Nigeria. The expectation that journalists should act as instruments of the state, rather than as independent observers, raises critical questions about democratic accountability. The government’s preference for compliant and uncritical media serves to stifle dissent and limit transparency, ultimately harming the public’s right to information. The ongoing struggle for Nigerian journalists to reclaim their agency while maintaining their commitment to ethical reporting is indicative of the broader challenges faced by media professionals in environments where freedom of expression is under threat.

Media Control and Padded Reporting

The phenomenon of ‘padded media’ in Nigeria has emerged as a significant barrier to the effective practice of journalism in the country. This term refers to the situation where journalists find themselves systematically excluded from events and reliant on official press releases that dictate both the narrative and the scope of their reporting. Such a model significantly undermines journalistic integrity and, more broadly, the very foundation of democracy. When press releases dominate media coverage, journalists lose their function as independent watchdogs, which limits their ability to critically evaluate those in positions of power.

The implications of this situation are profound. Journalists are compelled to operate within a framework that limits their ability to uncover the truth. They are left with little enthusiasm for investigative journalism, as genuine opportunities for in-depth reporting become increasingly scarce. Instead of acting as informants to the public, many journalists are relegated to being mere transmitters of information, devoid of context or critical analysis. Consequently, the richness of news reporting is diminished, and the public remains ill-informed about essential societal issues.

Moreover, this control over the media landscape generates a culture of self-censorship among journalists who fear repercussions for deviating from the narratives approved by those in power. They are caught in a precarious situation where the potential consequences of dissenting from the mainstream narrative can impact their career stability. As the practice of padded reporting continues, the erosion of journalistic integrity poses a threat not only to individual reporters but also to the broader social contract that underpins democracy. Thus, it is crucial to address the factors leading to this control to restore the essential role of journalists in society, fostering an environment in which freedom of expression and investigative rigour is once again prioritized.

A Call to Action: Supporting Journalists in Distress

The landscape for journalists in Nigeria is increasingly perilous, with many facing threats, harassment, and even violence as they strive to maintain the integrity of their work. In light of these challenges, various stakeholders must step forward to support Nigerian journalists. The public, civil society organizations, and international bodies need to take decisive action to address these issues and improve the working conditions for media professionals across the country.

One fundamental area for improvement is advocacy for fair wages. Many journalists in Nigeria are underpaid and often work in precarious conditions without any job security. By actively supporting initiatives aimed at establishing a living wage, stakeholders can help ensure that journalists can sustain themselves and operate without the constant threat of financial instability. This requires collaboration between media institutions, government entities, and non-profit organizations dedicated to press freedom.

Safety measures must also be prioritized. Media professionals should be provided with essential protective measures, including training in risk assessment and crisis management. Civil society organizations can play an instrumental role in this regard by offering workshops and resources that equip journalists with the necessary skills to navigate hostile environments. Moreover, international bodies can exert pressure on the Nigerian government to uphold and enforce laws that protect journalists from threats and violence.

Greater independence from government pressures is equally crucial. Supporting initiatives that promote media pluralism and editorial independence can help create a more open and just media landscape. Journalists need to operate without the fear of censorship or retaliation, ensuring they can report freely and transparently about matters concerning the public. Unity among journalists, their supporters, and the broader civil society will be fundamental in advocating for change and achieving a more equitable media environment for all in Nigeria.

 

Mimiola, an award-winning journalist, sent this piece in from Ibadan.

Continue Reading

Opinion

Ibadan/Ogbomoso/Ilorin Expressway As Signposts Of Nigerian Federalism | By Taiwo Adisa

Published

on

By

Since the July 11 judgment of the Supreme Court, which granted financial autonomy to the 774 local governments in the country, voices have been divided about the true say of the 1999 Constitution and the take of the apex court. Some have hailed the decision as affirming the existence of the third tier of government in the polity, while others have also opined that it was an affront to federalism. I have always maintained that no one-cube-fits-all situation to federalism and that even territories that operate a two-tier federalism model still guarantee financially free councils/counties/mayoralties.

The Nigerian scenario is such that state governments want to be seen as co-equal with the central government and want to be known as the federating units, while they emasculate everything about municipal or local governance, even though they agree that the local governments should benefit up to 20.6 per cent of the earnings of the federation set aside by the constitution. So I will agree that it’s something that calls for further discussion and a consensus.

If we want our federalism defined in a two-tier structure, then the funds standing in the name of the councils from the federation account have to be collapsed, such that the states can create the number of councils they deem fit and administer the same with funds at their disposal. But if we go by the system envisaged by the 1999 Constitution (as amended), a three-tier structure has been favoured. Something that looks like a homegrown model of federalism

My people in Ogbomoso, Oyo State, had taken advantage of that presidential model at the local government levels, starting from the early 1990s, through the 2000s. The military was operating a three-tier governance system, whereby the councils got their funds directly and utilised the same for the development of their areas. When the then military president, Gen. Ibrahim Babangida (rtd) instituted the zero party elections at the councils, the people seized the opportunity to bring in credible administrators who could ensure the development of the town, using the council funds.

The regime of the late Chief Ayantayo Ayandele kick-started the pacy development and when the old council got split into Ogbomoso North and South local governments a sort of competition was ignited as the councils strove to outpace each other in the area of infrastructure development.

Occupants of chairmanship seats like Hon.Remi Odetomi and the late Adebayo Alao-Akala, continued the tradition after Chief Ayandele, and before long, most internal roads within Ogbomoso town had become not just motorable but reference points to other towns. Not many cared about the state of the federal road that cut through the town because they could easily access their locations once they veered off that main entry from either Ilorin/Ibadan/Oyo/Osogbo end.

It was a thing of pride for those visiting the town during Christmas and New Year and for the never-ending ceremonies. Many were never really bothered about the federal highway that traverses the town, which was always busy with crawling articulated vehicles and their troubles. Some would fall at critical junctions, obstructing traffic. Some would cause accidents, breaking fences and stalls. Because the internal roads were okay, many Ilorin/Ibadan bound buses easily made detours into the interiors of the town and found their way.

When President Olusegun Obasanjo on January 3, 2001, approved the award of the four-lane Ibadan /Oyo/ Ogbomoso/ Ilorin Expressway, many were upbeat that the traffic challenges posed by the trucks on the federal road would soon be over. But this is 2024, 23 years after the road was inaugurated, the Federal Government is yet to complete the Ibadan/Ilorin expressway, especially the Ogbomoso/Oyo end. With the complete collapse of the single-lane Ibadan/Ilorin federal road, the only option left for the trucks was to make a detour into the main town, and that led to the total collapse of the interior roads as well. The situation now is such that motorists seeking to cross from Ibadan to Ilorin must spend some six hours between Ogbomoso and Ilorin, a journey of less than 30 minutes.

Sometime last week, a former Senator, one whom I will regard as one the finest Ekiti State had produced in recent years experienced the fall of the old Ogbomoso/Oyo road. When he made a call to me, the voice sounded frantic and desperate for a solution. He started a journey from Ilorin, en route to Ibadan and was therefore condemned to use the Ilorin/Ogbomoso/Ibadan road. 30 minutes after the start of his journey, he got stuck in Ogbomoso and had to engage an okada rider to help navigate through the town. After the Okada rider had tried three possible outlets and was unsuccessful, he was on his way to the fourth, when the Senator called. The road was completely blocked and there was no way to navigate the main North-West/South-West highway.

Now that the internal roads have equally collapsed, the trucks conveying foodstuffs from the North and those conveying other products from the South had to dance unwarranted konko below in the ancient city, wasting lots of man hours. Some five, or six hours are devoted to that unbecoming dance steps daily. The effect is that the already biting food insecurity is further enamored, and we see that in the food inflation data presented by the National Bureau of Statistics month on month. Unfortunately, unlike the situation in the 1990s, the local governments have lost the power. So the people can no longer rely on their councils to effect their local version of federalism and ensure the roads are fixed to ease their travails.

Commentators would say that the federal road belongs to the Ministry of Works in Abuja. The same with the Ibadan/Ilorin Expressway, which has been under construction for 23 years! But the Federal Government is far away in Abuja. My checks revealed that the Oyo/Ogbomoso end of the expressway is just left with some 10 kilometres to link the already completed Ilorin/Ogbomoso section. Someone needs to appeal to President Bola Tinubu and his Minister of Works, Dave Umahi, to focus on this main artery before the Sokoto/Badagry super highway takes their attention away.

Moved at the danger to the North/South economy the Ogbomoso road was already constituting to food and energy security, Majority Leader of the Oyo State House of Assembly, Hon. Sanjo Adedoyin, moved a motion last week for the house to summon representatives of the Federal Road Maintenance Agency (FERMA) in the state to give reasons why the main access to the North Western part of Nigeria must be left in such decay. We can only hope that Umahi will break the 23-year jinx and deliver the Ibadan/Oyo/Ogbomoso/Ilorin Expressway this time. His predecessors promised to no avail.

Continue Reading

Trending