National

By Aliyu Nuhu

Here is the use and advantages of foreign reserve currencies for nations that take their economy serious and have development and growth of their nations in mind.

First, countries use their foreign exchange reserves to keep the value of their currencies at a fixed rate. A good example is China, which pegs the value of its currency, the Yuan, to the dollar. When China stockpiles dollars, that raises its value when compared to the Yuan. That makes Chinese exports cheaper than American-made goods, increasing sales.

Second, those with a floating exchange rate system use reserves to keep the value of their currency lower than the dollar.

They do this for the same reasons as those with fixed rate systems. Even though Japan’s currency, the Yen, is a floating system, the Central Bank of Japan buys U.S. Treasuries to keep its value lower than the dollar. Like China, this keeps Japan’s exports relatively cheaper, boosting trade and economic growth.

A third, and critical, function is to maintain liquidity in case of an economic crisis. For example, a flood or volcano might temporarily suspend local exporters’ ability to produce goods. That cuts off their supply of foreign currency to pay for imports. In that case, the central bank can exchange its foreign currency for their local currency, allowing them to pay for and receive the imports.

Similarly, foreign investors will get spooked if a country has a war, military coup, or other blows to confidence. They withdraw their deposits from the country’s banks, creating a severe shortage in foreign currency. This pushes down the value of the local currency since fewer people want it. That makes imports more expensive, creating inflation. The central bank supplies foreign currency to keep markets steady. It also buys the local currency to support its value and prevent inflation. This reassures foreign investors, who return to the economy.

A fourth reason is to provide confidence. The central bank assures foreign investors that it is ready to take action to protect their investments. It will also prevent a sudden flight to safety and loss of capital for the country. In that way, a strong position in foreign currency reserves can prevent economic crises caused when an event triggers a flight to safety.

Fifth, reserves are always needed to make sure a country meets its external obligations. These include international payment obligations, including sovereign and commercial debts. They also include financing of imports and the ability to absorb any unexpected capital movements.

Sixth, some countries use their reserves to fund sectors, such as infrastructure. China, for instance, has used part of its forex reserves for recapitalizing some of its state-owned banks.

Seventh, most central banks want to boost returns without compromising safety. They know the best way to do that is to diversify their portfolios. That’s why they’ll often hold gold and other safe, interest-bearing investments. 

How much are enough reserves? 

At a minimum, countries have enough to pay for three to six months of imports. That prevents food shortages, for example. Another guideline is to have enough to cover the country’s debt payments and current account deficits for the next 12 months. In 2015, Greece was unable to do this. It then used its reserves with the IMF to make a debt payment to the European Central Bank.

If Nigeria had been a prudent nation we should be having $900bn as our foreign reserve by now, and according to world bank, a Naira will exchange Dollar one for one.

But look at us. We neither have robust national saving, nor an infrastructure to show for the money we earned. A wasted nation. Aliyu Nuhu is a renowned social commentator on African affairs. He writes from Abuja, Nigeria.

By Muhammad Muzdaleefa

Being a student of diplomatic history, I have been following the poverty eradication campaign in China for years. It is a shame that Western media have decided to bash it as Chinese propaganda instead of looking at the take away lessons that can be applied globally with necessary adjustments for sustainable growth and development.

The way China has been going through this issue is very methodical and practical. They have a clear standard of living which they are working hard to ensure it is universally achieved. In other words, they create a world where everyone has a smooth path to realize their dreams and ensure no one is left behind. This is very different from the competitive capitalist system practiced in the West where everyone is obsessed with being ahead of the other.

The Chinese have used very simple ideas. These include the following;

1. Housing – The Chinese model is ensuring everyone has adequate and decent housing. Those with poor housing have had their houses reconstructed or relocated to new houses.
2. Income – The Chinese have ensured everyone has a sustained income source that elevates them above the poverty line. This has been through implementation of various income generating projects based on local needs and environment.

In one example, some farmlands where farming was ecologically harmful were turned into a forest. The former farmers were then employed as forest guards. Another example is where some villages were helped to establish solar power plants from which they earn incomes.

3. Education – The Chinese model states that education is the best way to stop transmission of generational poverty. As a result they have implemented a system which has resulted in zero school dropout cases. Some 8 million youths who had dropped out of school at various levels have been taken through vocational training.
4. Health – Unhealthy people can’t fight poverty. They are people who are consigned to poverty due to treatable health issues. China has worked to ensure affordable healthcare in order to ensure that no person falls back to poverty dues to illness. The response of the Chinese government sequel to the outbreak of Coronavirus pandemic was admired throughout the world.

To achieve the above the following foundational issues are critical;

1. Household targeted poverty eradication – a census of poor people was conducted which identified every household defined as poor. This bottom up approach is key because you cannot eradicate poverty until every household has been lifted from poverty. The household is the epicentre of poverty.
2. Planning and involving people – after the poor are identified, detailed planning is undertaken and the people are involved in coming up with solutions to eradicate poverty.
3. Clear goals – the officials are expected to come up with practical goals and realistic timelines. In one case where officials had set lofty and unrealistic targets President Xi Jinping emphasized that for the battle against poverty to be won there should be no procrastination or impatience.
4. Measurement and independent evaluation – countries that claim to have eradicated poverty have to apply for removal from a list of countries that still have people living in poverty. Such an application is followed by independent verification. Evaluators are sent to verify the claims and they are supposed to visit each household without being accompanied by the village officials. Countries that fail to pass the evaluation have to continue with poverty eradication work.

In conclusion, eradicating poverty is not rocket science. Simple, practical and realistic steps are needed. Most importantly, a visionary, selfless and committed leadership must be in place for this to work effectively. 2023 is a good opportunity for Nigerians to elect capable, dependable and reliable leaders that will not only address the critical needs of Nigerians but will put the country on the path of sustainable growth and development for the contemporary generation and posterity.

By Muhammadu Sabiu 

The Lagos State University, LASU, has issued fifteen new guidelines for students’ on-campus dressing that are deemed inappropriate.

The university also instructs lecturers to make sure that no student is wearing inappropriate clothing when in class.

This was contained in a statement issued by Olaniyi Jeariogbe, the interim head of the Center for Information, who warns it is no longer condonable for the students’ continued disregard for its rules and regulations on the manner of dressing on campus. 

According to the statement, Prof. Ibiyemi Olatunji-Bello, Vice Chancellor, has notified the College Provost, Deans of Faculties, Heads of Departments, and faculty officials on both the main campus and satellite campuses to work together to implement the new dress codes.

The Institution’s list of fifteen indecent dress codes prohibits wearing transparent dresses, tattered clothing, “baggy,” “saggy,” “yansh,” “ass level,” and all other varieties of indecent trousers.

It also forbids wearing dirty jeans with holes or offensive subliminal messages.

Others include body piercing and tattoos, wearing necklaces and earrings by male students, wearing necklaces and nose rings by students, tight-fitting clothing, rolling sleeves or flying shirt collars, obnoxious or seductive writing, improperly buttoned dresses, shirts without buttons, completely covering faces (with very dark glasses), wearing face caps, and wearing necklaces and earrings.

The list of the banned dress codes also includes male students braiding, weaving, or glueing their hair or wearing distracting footwear like stiletto heels in the library and lecture halls. 

The rest include lousy footwear, untidy, vividly coloured eyelashes or eyebrows, highly fake or coloured artificial hair, artificial dreadlocks, and the extension of long fingernails or eyelashes.

By Sumayyah Auwal Ishaq

Almost all banks are now attending to long queues in their banking halls as the deadline for the use old currency by the Central Bank of Nigeria (CBN) draws closer, investigation by The Daily Reality has revealed.

The rush by customers to deposit old currency generated much chaos in and around banks premises across the Kaduna metropolis throughout the week. The queues at banks in Yakubu Gowon Way, Station Road, Kano Road and Sabon Tasha were characterized by commotion caused by slow speed of the deposit process and impatience by customers.

Some of the customers who spoke to TDR said they were scared of losing their monies as the CBN had warned that those who failed to remit their old currencies would lose it after the deadline.

Officials of these banks had a very hectic time controlling the huge crowd in their premises, even as customers complained of slow services by the banks. Some of the customers expressed frustration queueing in the sun and the difficulty in remitting their monies, suggesting that further extension of the deadline would ease their pain.

It would be recalled that the CBN had given all Nigerians up to the end of January, 2023 to remit their old currencies as it ceases to be a legal tender after the stipulated time.

By Muhammadu Sabiu 

According to findings obtained by The Daily Reality, Kano State has been experiencing a diphtheria outbreak since last Friday, and as of Thursday, at least 25 people had died as a result.

It was discovered that the Murtala Muhammed Specialist Hospital and Aminu Kano Teaching Hospital in Kano are treating the killer disease, which was first discovered in the state in the late 2022.

Diphtheria infection is a dangerous infection of the nose and throat, according to medical professionals, and it is easily avoidable through immunisations.

Experts say that a sore throat, hoarseness, swollen glands (enlarged lymph nodes) in the neck, trouble breathing or quick breathing, nasal discharge, fever and fatigue are some of the signs and symptoms of diphtheria.

The state’s Ungogo Local Government Area is where the illness, which is thought to be communicable, was originally identified.

According to the state ministry of health’s records, at least 58 probable instances of the disease were recorded during the outbreak, six of them were admitted, and 25 patients had already passed away as of January 13, 2023.

The National Center for Disease Control (NCDC), according to our source, sent medical personnel to the state last week due to the severity of the outbreak.

By Aisar Fagge

The Dangote Cement Plc. has Thursday appointed Arvind Pathak as the group Managing Director with effect from 1st March, 2023.

The news was relayed to journalists in a corporate disclosure made available to the Nigerian Exchange Ltd. by Edward Imoedemhe, the company’s acting Secretary/General Counsel.

It was gathered that the Pathak appointment was prompted by the retirement of Michel Puchercos from from the group Managing Director/CEO.

The statement reads in part: “The appointment of Arvind Pathak will be included in the agenda at the next Annual General Meeting for ratification by the shareholders in accordance with the Companies and Allied Matters Act.

“The Board would like to thank Michel Puchercos for his commitment and contributions to the Board and wishes him well in his future endeavours, while welcoming Arvind Pathak back to the Dangote family and wishing him success in his new role,” the company said.

Before his appointment, Pathak worked as MD and CEO of Birla Corporation Ltd. and was described as the experienced and hardworking person.

It was gathered that Pathak is also the former Chief Operating Officer and Deputy Group Managing Director of Dangote Cement Plc.

By Ahmad Deedat Zakari

Nigeria’s Vice President, Professor Yemi Osinbajo, chaired the first Federal Executive Council (FEC) meeting for the year 2023 on Wednesday. 

The meeting was held at the Council Chamber of the Presidential Villa, Abuja.

Osinbajo stood in for his principal, President Muhammadu Buhari, who departed the country to Nouakchott, Mauritania, to participate in the Programme of the Third Forum of the African Conference for Peace on Monday.

In attendance are the Secretary to Government of the Federation (SGF), Boss Mustapha; the Head of the Civil Service of the Federation, Dr Folasade Yemi-Esan; and the Deputy Chief of Staff to the President, Dr Adeola Ipaye.

Most of the cabinet members were also physically in attendance for the first FEC meeting of the year. 

However, the Ministers of Foreign Affairs, Geoffrey Onyeama, Defence, Maj. Gen. Bashir Magashi and the National Security Adviser, Maj. Gen. Mohammed Monguno were absent as they were on the President’s entourage in Nouakchott.

The President and his entourage are expected to return to the country on Wednesday.

By Muhammadu Sabiu 

The Governor of the Central Bank of Nigeria, Godwin Emefiele, has been summoned by the 36 state governors in relation to the withdrawal policy and the repainted naira notes.

The Nigeria Governors’ Forum, which embodies the governors, said on Tuesday that the scheduled meeting would take place on Thursday through its spokesperson, Abdulrazaque Bello-Barkindo.

Recall that Nigerians were instructed to deposit their old notes in banks by January 31, 2023, under the CBN’s naira redesign programme, which was implemented in October 2022 of last year.

The spokesperson noted that the virtual meeting would concentrate on the most recent apex bank withdrawal policy and currency redesign.

“For the virtual meeting, the agenda is the Economic and Security implications of naira redesign and withdrawal policy.

“The discussion promises to foster involvement and dialogue among various stakeholders, including governments and civil society organisations, to devise a solution to the lingering issue,” he said.

By Umar Yogiza

The four writers are Tares Oburumu, Ruth Chidera Echewe, Sadiq Mustafa and Taiye Ojo, they arrived in the ancient town of Ilorin, Kwara State, for the first batch of the 2023 Imodoye Writers Residency programme. A statement issued by the residency manager said the writers are expected to be there for three weeks and an optional one week.

Tares Oburumu is a Bayelsa State-born poet and essayist, based in Warri, Delta State, Nigeria. He’s the author of 6 published chapbooks. Tares Oburumu is the winner of the GAP poetry prize 2018 and his chapbook ‘origin of the syma species’ won The Sillerman First Book prize for African poets 2022, to be published by Nebraska University Press, U.S., in fall 2023. Tares had been nominated for the Pushcart prize with Woven Tales Press 2019, and Ice Floes International literary journal 2021.

Tares Oburumu is in Imodoye residency to work and expand his three chapbooks: Erasure, Chatham House and Red: the love story of Annie Ernaux. As a child, Tares heard the nerve-racking stories of how brothers took to the Atlantic Ocean, going oversee, and it broke him to pieces hearing the manner they died in their attempt to escape the bedlam their country has become. His lens’ expositions focus on emigration and the attendant trauma not told by those who suffer from it. And to shine the light on how they ended, coffined in the dream of escaping Nigeria.

Ruth Chidera Echewe, (Unbreakable) is a writer, editor, media personality and professional blogger. She publishes potpourri of themes in unbreaky.comblog, her personal blog space is called UNBREAKABLE FEATURES. She’s a graduate of English and Literary Studies from the Federal University Lafia, Nasarawa State, Nigeria. An indigene of Abia State, Nigeria, but resides in Enugu State.

Ruth, Chidera Echewe is in Imodoye to complete her work: Sisters Series, prose, dealings with humans, certain bonds that sustained our existence and given us a different definition of life. She kindly follows various studies that have proven the strongest bonds emanated from the establishment of relationships. Ruth is motivated by her passion for creativity which has gone ahead to give birth to what she intends to manifest into a publishing, writing and editing firm in the nearest future.

Abubakar Sadiq Mustapha is a poet, art curator, documentary photographer, and community developer. He studied Geology and Mining at Ibrahim Badamasi Babangida University, and currently rounding up his master’s program at the same Ibrahim Badamasi Babangida University, Lapai, Niger State. Sadiq uses books, photography, and arts in driving social change from girl-child education, and gender-based violence to youth participation in politics and believes in the power of photography and how it can be used toward mental health, is in Imodoye to complete his manuscript: Home is my Mother’s Tongue.

Abubakar is also a photo columnist with Salamander ink magazine and the curator of the Abubakar Gimba literacy campaign. He’s the project lead for The Lapai Bookclub’s mobile library and school, a project that takes reading and arts to grassroots communities in Northern Nigeria aimed at increasing the literacy rate of the region and creating awareness in governance.

Ojo Taiye is a Delta base Nigerian eco-artist and writer who uses poetry as a handy tool to hide his frustration with society. He’s the winner of the Hay Writer’s Circle poetry prize, US, 2021, Calthalbui poetry prize, Ireland 2021. In 2020 Taiye Ojo was selected to participate in Capital City Film Poetry Festival, in Michigan and Poetry Introductory Series, in Ireland. His commissioned works include Belfast Photo Festival 2021, Winnipeg Fringe Festival and Leeds Poetry Festival.

Taiye’s recent works explore neocolonialism, institutionalized violence and ecological trauma in the oil-rich, polluted Niger Delta. His themes deal with the effects of climate change,
homelessness, migration, drought and famine, as well as a range of transversal issues arising from
racism, black identity and mental health. Taiye Ojo is in Imodoye to complete his poetry collection: Scoping Map.

Established by Dr Usman Ladipo Akanbi, the Imodoye Writers Residency is a private initiative for writers and visual artists keen on completing their ongoing work in a conducive environment at no cost. And as part of giving back to the community, during their stay in the residency, the writers are expected to mentor secondary school students in Ilorin in creative art/writing.

By Muhammad Sagir Bauchi

Stabilization of prices and achieving full employment are among the core goals of every economy in their macroeconomic policies. In this case, there are two main approaches to curtail inflation, recession, unemployment and other negative macro-economic phenomena. These approaches are monetary and fiscal policies. While monetary policy refers to the central bank activities which are directed towards influencing the quantity of capital (money) and credit in an economy, fiscal policy refers to the government’s decisions on taxation and spending. Both monetary and fiscal policies are used to regulate economic activities over time. They can be used to accelerate growth when an economy starts to slow or to moderate growth and activity when an economy starts to overheat. In addition, fiscal policy can be used to redistribute income and wealth.

The overall goal of these monetary and fiscal policies is channelled to the creation of a healthy economic environment that could sustain economic growth, facilitate positive employment and stable inflation rate.

In a plain language, the main aim of these two policies is to steer an economy in the sense that the economy does not experience economic boom that could be followed by high period of low or negative growth, high level of unemployment and unstable price. In this situation, people can feel safe in their consumption, savings and investment decision and government could concentrate on economic decision making. And this is where the idea of Monetarist, Classical and Keynesian Schools of Economics come to play, where they have different views in respect to the effectiveness of the two policies.

PHILIPS CURVE FROM A SHORT GLANCE:

The issue of inflation and unemployment is not a new concept in the realm of economics and it’s one of the concepts that reflect the science of economics as a true reflection of reality, since that, almost everyone is feeling the impact of either of the two.

The history of Philips Curve can be traced to the research findings of A.W Philip, an economist who analyzed the relationship between unemployment and the rate of change of money wages in the United Kingdom in the years 1861-1957. At the end of his findings, he suggested that there is an inverse or negative relationship between wages and unemployment. In simple term, he meant that whenever there’s growth in unemployment, there would be a low level of inflation. And the rationale behind the justification of his idea is that wherein there’s employment, people have more money, which leads to high demand for goods and services, and eventually pushing prices up. On the other hand, when there’s a rise in unemployment, INFLATION will go down since there will be low demand for goods and services as there’s less money in circulation.

Philips and Other Economic Perspectives: there are different opinions with regards to the application of the curve and the measures to contain the phenomena.

According to Monetarist School, the issue of unemployment is a supply side phenomena, therefore, demand side measures cannot be used in curtailing them, and even if it occurs, it can be for a temporary and will accelerate price instability at the end. While to the Keynesian school, they argue that there can only be “demand deficient unemployment” And in the time of recession, demand side measures can reduce unemployment for long-term with little of inflation.

Nigeria’s Economic Reality:

In Nigeria, since its independence, unemployment and inflation are among the major distractions in the growth and development of the nation’s economy. This is evident as we are all witnessing a scenario where too much money is chasing few goods and another case of high supply of labor with low demand of it. According to data from the National Bureau of Statistics NBS), Nigeria’s inflation rate has been consistently high, averaging around 11% in the past decade. The high inflation rate can be attributed to a number of factors such as the devaluation of the Naira, increase in the cost of imports, and a rise in fuel prices.

In an effort to curb inflation, the Central Bank of Nigeria (CBN) has introduced and implemented a number of monetary policies, such as the recent cashless driven economy module; through daily and weekly money withdrawal limit, increasing interest rates, tightening liquidity, devaluing the Naira, etc. However, all these policies have not been entirely successful in bringing inflation under control. Additionally, the Nigerian government has also implemented fiscal and monetary policies such as capping government MDAs cash withdrawals limit to minimal amount, increasing taxes and cutting government spending to curb inflation, however, the effectiveness of these policies remains uncertain and challenging. Same goes to the apex bank ongoing monetary policy, especially the weekly withdrawals limit policy, which is an unprecedented threat to urban and rural businesses due to poor mobile/internet banking mechanisms in the country. As such, the apex bank must address these concerns through shifting the effective implementation date until all the proper mechanisms required to operate a cashless economy are put in place. This can be done if the CBN reasons and constitutes a committee that includes technocrats, bankers and internet service providers, which will make sure that effective moblie/internet services are made available to cover the whole country before the policy kicks off and kicks up.

In conclusion, the relationship between inflation and unemployment as represented by the Philips curve is a complex one that is influenced by a variety of factors. The Nigerian economy is facing significant challenges in terms of cashless economy application, high inflation and unemployment rates, and finding effective solutions to these issues will require a rigorous political will and careful consideration of both monetary and fiscal policies. It is important for the government and the central bank to continue to monitor and analyze economic data and make adjustments to policies as needed, in order to create a stable economic environment that supports growth and employment.

Muhammad Sagir Bauchi, is a graduate of Economics from Sa’adu Zungur University, Gadau, Bauchi State. He can be reached via ibrahimsagir1227@gmail.com