So we all know the Nigerian economy has been in recession. The Federal Government assured us at different times we will be out of it soon, but that remains to be seen. In a creative move to get the economy under control, and out of recession, President Buhari yesterday sent his lapdogs- the Department of State Security Service(DSS) – to raid the shops of unlicensed Bureau de Change operators in Lagos and Abuja. As if that is supposed to solve the problem of dollar supply (forex). A dealer who spoke with Reuters said, “the police and state security service officials are raiding black marketers in Lagos and Abuja to compel an appreciation of the naira.”
How is that supposed to work, we wonder?
SBM Intelligence reports that “Central Bank of Nigeria has issued a new circular warning Illegal Money Transfer Operators to stop facilitating illegal transfer of forex into Nigeria (especially at exorbitant rates) without their approval. The regulator said that these MTOs “lure unsuspecting customers with ridiculous exchange rate, use Naira accounts opened in local banks ostensibly for legal business to pay out the proceeds to the beneficiaries while channeling the foreign currencies to fund the parallel market,” saying this has led to the non-reporting of such transactions to the authorities as well as leading to discrepancies in statistics on the transactions between countries of origin of remittance and the destination country, Nigeria”
SBM’s conclusion, which we are in vehement agreement with, is this:
The recent action by the DSS in collusion with the CBN is the final nail in the coffin of the purported float that was gleefully announced in June. We foresee an increased scarcity of already scarce FX, and this will only create a black market within a black market. The result will be higher risk and followed by a rise in the price of the FX. We believe that the Naira will cross the ₦500 mark before November runs out. The CBN’s actions against Standard Chartered Bank must be applied to other banks within the industry who have been reported to have been involved in similar actions in order for the regulator to be seen as fair and equitable.
@afrispheric notes that it’s simply history repeating itself. This was how President Buhari operated as Genal Buhari in the 80s, and it’s all he knows to do.
Do see below.
#Nigeria's intelligence service to arrest black-market #naira traders in bid to defend currency. https://t.co/cKgv3hbVH5 @robbrand @Emeleonu pic.twitter.com/Nw1XSSmbjZ
— Paul Wallace (@PaulWallace123) November 10, 2016
As it was in 1984/85, so it again in 2016… https://t.co/4spzNl8nUp
— afrispheric (@afrispheric) November 10, 2016
Nigerians, let me announce to us, AGAIN, that d Buhari administration lacks a fundamental understanding of economic matters & governance
— afrispheric (@afrispheric) November 10, 2016
We all know that Buhari performed magical feat by assembling d greatest number of lackluster ppl as ministers
But that is not d main thing
— afrispheric (@afrispheric) November 10, 2016
The main problem is the doctrine/worldview that drives EVERYTHING that Buhari's govt does
It is a doctrine of deification and force
— afrispheric (@afrispheric) November 10, 2016
Deification in d sense that a single individual, Buhari, as assumed the status of all knowing & all righteous
— afrispheric (@afrispheric) November 10, 2016
Force in the sense that Buhari's govt believes that (armed) force is the solution to everything.
A few examples will suffice
— afrispheric (@afrispheric) November 10, 2016
Govt FX receipt dropped due to oil price drop. Buhari's response?
Ban many imports. Not a rational economic decision, but a show of force..
— afrispheric (@afrispheric) November 10, 2016
Next, we see DSS hounding BDC operators. Not a rational economic decision, but a show of force. Typical Buhari
— afrispheric (@afrispheric) November 10, 2016
Nigerians are "undisciplined" according to Buhari. Response? A show of force by resurrecting a mummified WAI
Again, not a rational decision
— afrispheric (@afrispheric) November 10, 2016
Buhari does NOT understand that economic matters can NOT be solved by force
Neither can matters of nationhood & national character
— afrispheric (@afrispheric) November 10, 2016
Am I surprised at how Buhari's govt is behaving?
No
Buhari's history was publicly available for any that cared to know
— afrispheric (@afrispheric) November 10, 2016
Will Buhari's govt change tack & take rational economic & governance decisions?
Not going to happen
Buhari's worldview is cast in granite
— afrispheric (@afrispheric) November 10, 2016
In conclusion, Nigerians should just endure till 2019, but make sure Buhari is kicked out come 2019
There is no work around
— afrispheric (@afrispheric) November 10, 2016
he did say he would use the army and navy to defend the economy
— udo (@obongg) November 10, 2016
Oyibos say you can’t teach an old dog new tricks
