Ifere Paul|22 December 2015|6:15am
As 2016 approaches, the federal government of Nigeria should as a matter of urgency embrace the
following:
a. Remove the petroleum subsidies. This is Nigeria's major avenue of corruption in the oil and gas sector. Removal of subsidies in this sector will drive in private investors and that in itself can revitalize the sector by stabilising steady supply and low price regimes in the long run.
b. Recover the Naira from the dollar and pound.
According to the bureau of statistics, one and half of Nigeria foreign trade in the last 5 years is with Asian countries. Half of that is with Mainland China. The other half is shared among Hong Kong, Taiwan, Macao (which are traditionally Chinese). With such
massive trade and investment opportunities as presented by China at the African China Cooperation
Submit in South Africa, trading in the dollar becomes cumbersome for Nigeria and its traders, as the Naira is doubly taxed at both ends. First by banks in Nigeria from conversions and then said
dollar is charge at Chinese government currency benchmarks not current forex index in China.
Such shortcomings can be curtailed if the Yuan is adopted. As the World Bank and IMF also recognizes the Chinese Yuan as a currency of international trade, New Zealand and Australia have adopted the Yuan. Most prominent is that the ASEAN (Association of
Southeast Asian Nations) bloc has since adopted the Yuan through the AIIB-Asia Infrastructure
Investment Bank. This bank is formed and financed by China. It is one of the most powerful banks in the world, servicing the BRICS nations through huge grants and loans and infrastructure development in its member nations.
In fact, Nigeria should begin to
think of joining the BRICS and AIIB. The AIIB has concluded and indeed started the construction of road through the Gobi desert and silk road to Europe. Another road from Asia to Canada and US has just been approved. Officially, Canada newest 43 year old Prime Minister
Trudeau has concluded partnership arrangement with AIIB. With his policy of an all inclusive China,
Trudeau Jr as Prime Minister will open up negotiations for Canada-China relations very soon. He has promised to visit China to activate all diplomatic ties that were severed by the last administration.
Top on the agenda is the adoption of the Chinese Yuan. This according to him will be a boost to both China and Canada in terms of trade and investment. It is my believe that Nigeria trade and investment
will be much easier if both countries adopts one of their currencies for trade other than the dollar or
pounds.
c. Reactivating the power sector for efficient power supply.
This will reduce unemployment. The lack of steady power supply has driven out investors rather than attracting them. The power generation in Nigeria is lower than the demand. Erratic power supply and blackouts are as a result of the lack of infrastructure development in power generation for over 30 years.
The Gencos and Discos established by President Jonathan were to a larger extent, avenues for siphoning monies. Therefore, the Minister of Power, Housing & Works has a lot to do to develop the sector for efficiency in other to bring back investors who will in turn employ the teeming youths. With adequate power development and distribution, talented graduates can establish SME with minimal
supervision as long as there's steady power supply.
d. When all the issues above are taken care of, there won't be any need for Nigeria to devalue the
Naira as was recommended by IMF, World Bank, and the EuroBank.
Nigerians just have to sacrifice their comfort a little bit as oil pump price will increase if subsidy is
removed. My 1 cent opinion.
Ifere Paul
Is a Public Policy Analyst & Environmental Activist
