Parallel Imports – Thunder From Under http://thunderfromunder.com/ Wed, 15 Sep 2021 17:04:05 +0000 en-US hourly 1 https://wordpress.org/?v=5.8 http://thunderfromunder.com/wp-content/uploads/2021/04/thunder-from-under-icon.png Parallel Imports – Thunder From Under http://thunderfromunder.com/ 32 32 Shell pledges 7.5 MW of electricity to Rivers community to quell protests http://thunderfromunder.com/shell-pledges-7-5-mw-of-electricity-to-rivers-community-to-quell-protests/ Wed, 15 Sep 2021 16:47:11 +0000 http://thunderfromunder.com/shell-pledges-7-5-mw-of-electricity-to-rivers-community-to-quell-protests/

By Adedapo Adesanya

On July 27, the Governor of the Central Bank of Nigeria (CBN), Mr. Godwin Emefiele, in his usual attire of black suit and lemon tie announcement that the bank will stop selling foreign exchange (FX) to exchange bureaus (BDC).

This was not without precedent, as such an action had been carried out twice during his tenure, but one thing was certain, the Naira was destined for uncharted territory.

The local currency, which stood at $ 526/1 at the end of last month, fell to $ 557/1 on the parallel market on Tuesday, September 14. This means that in two weeks it has lost 5.9% or 31 N of its value. against the US dollar.

This is particularly revealing as the forex affects everything Nigerians use with a corresponding expected increase in goods and services.

“We are concerned that the BDCs have allowed themselves to be used for corrupt purposes,” Emefiele said when announcing the decision after the two-day Monetary Policy Committee meeting ( MPC) in Abuja.

He accused BDC operators of sabotaging the financial system and refused to sell forex at a small margin other than the official Investor and Exporter (I&E) window.

Although the central bank declares that the black market is an illegal channel for the supply of foreign exchange, many Nigerians have no choice but to turn to the unregulated market to meet their needs because they have been excluded. official channels, especially importers of items in the market. List of exchange restrictions.

In addition, those who are allowed to access forex on the I&E segment via advertisements are limited to a certain amount per quarter, such as PTAs and BTAs, where the quarterly allocation is $ 4000 and $ 5000 respectively.

This situation forces many end users of forex to move to the parallel market, causing BDC traders to increase the exchange rate, further increasing the disparity between the rate of the official channels and the unofficial window.

Although Mr. Emefiele remained silent despite several calls from different quarters, asking him to take action to save the Naira from total collapse, CBN Monetary Policy Director Mr. Hassan Mahmud in a virtual investor conference last week noted the main concern of the CBN, for now, was to stimulate the supply of dollars at the market counters and not the valuation of the local currency.

He said the umbrella bank was concerned about the supply of the forex market and confidence in the system, noting that the level of the Naira had to adjust according to demand.

No indication has shown that the Naira will stop its continued downward trajectory anytime soon, with many calling for the CBN governor’s resignation.

A member of the House of Representatives, Mr. Tajudeen Adefisoye, had alleged that Mr. Emefiele ignored multiple appeals from the National Assembly to appear before it to explain its exchange rate policy and others.

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Air pollution from coal-fired power plants in Balkans kills around 19,000 people, study finds http://thunderfromunder.com/air-pollution-from-coal-fired-power-plants-in-balkans-kills-around-19000-people-study-finds/ Fri, 10 Sep 2021 16:02:55 +0000 http://thunderfromunder.com/air-pollution-from-coal-fired-power-plants-in-balkans-kills-around-19000-people-study-finds/

According to a report published on September 7 by the CEE Bankwatch Network and the Center for Research on Energy and Clean Air, around 19,000 people have died in the past three years as a result of air pollution from coal-fired power plants. of the Western Balkans. .

The report, Comply or Close, launched to mark International Clean Air Day for Blue Skies, finds that nearly 12,000 of those deaths were due to violations of legally binding pollution limits. More than half of these preventable deaths occurred in the EU, which imports 8% of the electricity produced by these heavily polluting power plants, CEE Bankwatch said in a statement.

According to the report, air pollution from coal-fired power plants in Serbia, Kosovo, Bosnia and Herzegovina, North Macedonia and Montenegro affects not only residents of their own countries, but also those in neighboring countries of the EU, notably in Romania, Hungary and Greece.

“This report exposes the human toll of the continuing breaches of coal-based electricity in the Western Balkans. Governments in the region must immediately begin a swift and fair transition to sustainable energy systems, with the support of the EU ”, CEE Bankwatch Network Southeast Europe Energy Advisor Pippa gallop noted.

The Large Combustion Plant Directive – an EU directive aimed at reducing emissions of hazardous substances, adapted for countries party to the Energy Community Treaty – legally obliges these countries to control air pollution in their homes. power plants since 2018, the press release says. Yet, as the report finds, in 2020 the 18 coal-fired power stations in the Western Balkans emitted two and a half times more sulfur dioxide (SO2) than the 221 coal-fired power stations in the EU combined.

The new report reveals how coal-fired power plants in the Western Balkans have not only flouted countries’ legal obligations, but have also taken a heavy toll on the lives of people in the region and beyond.

According to the analysis, 3,700 people died in the Western Balkans and 7,000 in the EU alone due to coal-fired power plants in the Western Balkans which exceeded pollution limits between 2018 and 2020. It is estimated that around a thousand more people have died in other areas from suffocation. air pollution from the same power plants.

In the three years since air pollution limits became mandatory under the Energy Community Treaty, the coal-fired power plants of Serbia, Bosnia and Herzegovina, North Macedonia and Kosovo have emitted SO2 at levels at least six times above the legal limit.

In Serbia alone, coal-fired power stations subject to the national emission reduction plan emitted more SO2 in 2020 than the entire fleet of coal-fired power stations in the EU, said CEE Bankwatch.

In the same year, the Ugljevik power plant in Bosnia and Herzegovina was the region’s worst polluter, single-handedly exceeding the combined SO2 cap for the four countries. The unit, like the Serbian Kostolac B, is equipped with a desulphurization system, but it has not been put into operation. Worse yet, an additional 700 MW of new lignite capacity is still planned at the Ugljevik plant.

According to CEE Bankwatch, the four countries with national emission reduction plans – Serbia, Bosnia and Herzegovina, Kosovo and North Macedonia – are currently facing litigation for failure to meet the pollution limits of the plans in 2018. and 2019. Another dispute resolution case was opened against Montenegro in April 2021 after the Pljevlja power plant continued to operate beyond its 20,000 hour quota under the ‘lifetime exemption. limited ”of the Large Combustion Plants Directive.

“Those governments in the Western Balkans that have not yet done so must set a date for an urgent coal phase-out,” coordinator of the Balkan air pollution campaign of the CEE Bankwatch network. Davor Pehchevski said, adding: “For power plants that cannot be shut down immediately, governments must limit their hours of operation until emissions standards are met, in order to save lives.”

He argued that in parallel, investments in energy efficiency measures and renewable energies must be urgently scaled up and that plans for a just transition for coal workers and communities must be developed with all stakeholders. relevant stakeholders, especially affected communities.

According to the report, the electricity produced by these coal-fired power plants and traded with the EU in 2020 – although it represents only a tiny fraction of the EU’s electricity consumption – produced as much SO2 as half of the EU’s coal-fired power stations combined.

Lauri Myllyvirta, a senior analyst at the Energy and Clean Air Research Center, pointed out that the report shows that when the EU exchanges electricity with its neighbors in the Western Balkans, it bears both the impacts and part of the responsibility of uncontrollable air pollution resulting from it. “The EU must also help the countries of the Western Balkans to move beyond coal by taxing imports of electricity from fossil fuels and by ensuring the effective application of the Treaty establishing the Energy Community”, said she argued.

Ioana Ciuta, energy coordinator for the Western Balkans at CEE Bankwatch Network, argued that governments in the Western Balkans cannot dream of EU membership while ignoring pollution control rules. He concluded that “to avoid this kind of blatant non-compliance, the application of the Energy Community Treaty must be a priority. The European Commission and EU governments must introduce effective sanctions ”.

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Polluting coal-fired power stations in Western Balkans are responsible for thousands of deaths in new report http://thunderfromunder.com/polluting-coal-fired-power-stations-in-western-balkans-are-responsible-for-thousands-of-deaths-in-new-report/ Wed, 08 Sep 2021 11:00:15 +0000 http://thunderfromunder.com/polluting-coal-fired-power-stations-in-western-balkans-are-responsible-for-thousands-of-deaths-in-new-report/

Thousands of people in Europe have died from coal-fired power plants in the Western Balkans that have exceeded pollution limits, according to a new report.

The report from the EWC Bankwatch Network and the Energy and Clean Air Research Center states that 19,000 people have died in the past three years, due to air pollution caused by factories in Serbia, in Kosovo, Bosnia and Herzegovina, North Macedonia and Montenegro. .

The report warns that the pollution caused by these plants affects not only the inhabitants of their own country, but also those of countries neighboring the EU, especially Romania, Hungary and Greece.

“This report exposes the human toll of the continuing breaches of coal-based electricity in the Western Balkans. Governments in the region must immediately initiate a swift and fair transition to sustainable energy systems, with the support of the EU, ”said Pippa Gallop, Energy Advisor for South East Europe at CEE Bankwatch Network.

According to the analysis, 3,700 people died in the Western Balkans and 7,000 in the EU due to coal-fired power plants in the Western Balkans which exceeded pollution limits between 2018 and 2020.

It is also estimated that nearly a thousand more people have died in other regions due to the suffocating air pollution caused by the same power plants.

The 18 coal-fired power plants in the Western Balkans emitted two and a half times more sulfur dioxide (SO2) than the 221 coal-fired power plants in the EU combined in 2020, according to the report.

“Governments in the Western Balkans that have not yet done so must set a date for a phase-out of coal,” said Davor Pehchevski, Balkan Air Pollution Campaign Coordinator at CEE Bankwatch Network.

“For power plants that cannot be shut down immediately, governments must limit their operating hours until emission standards are met, in order to save lives.”

“At the same time, investments in energy efficiency measures and renewable energies need to be urgently scaled up, and plans for a just transition for coal workers and communities need to be developed with all relevant stakeholders, including especially affected communities. ”

According to the report, the electricity produced by these coal-fired plants and traded with the EU in 2020 produced as much SO2 as half of the EU’s coal-fired plants combined.

“As our report shows, when the EU trades electricity with its neighbors in the Western Balkans, it bears both the impacts and part of the responsibility for the resulting uncontrollable air pollution. The EU must also help the countries of the Western Balkans to move beyond coal by taxing imports of electricity from fossil fuels and ensuring the effective application of the Treaty establishing the Energy Community ”, said Lauri Myllyvirta, Chief Analyst at the Energy and Clean Air Research Center.

“Governments in the Western Balkans cannot dream of EU membership while ignoring pollution control rules. To avoid this kind of flagrant non-conformity, the application of the Treaty establishing the Energy Community must be a priority. The European Commission and EU governments must introduce effective sanctions, ”concluded Ioana Ciuta, Energy Coordinator for the Western Balkans at CEE Bankwatch Network.

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What do the food and currency crises hold in Sri Lanka? http://thunderfromunder.com/what-do-the-food-and-currency-crises-hold-in-sri-lanka/ Sat, 04 Sep 2021 10:01:46 +0000 http://thunderfromunder.com/what-do-the-food-and-currency-crises-hold-in-sri-lanka/ After declaration of food emergency, island nation must navigate difficult situation

Sri Lankan President Gotabaya Rajapaksa’s promulgation of a “food emergency” in the face of a never-ending currency crisis has shocked locals and surprised friends and adversaries, both inside and outside the heartbreaking nation . Civil society activists have also not missed his appointment of an army officer, Major General NDSP Niwunhella, as Commissioner General of Essential Services, to ensure a regular and rapid supply of supplies. essential products; this is yet another example of the militarization of the civil administration under his regime.

The country’s financial difficulties had been known for years, starting with its predecessor, the “Government of National Unity” (GNU), under the dual leadership of President Maithripala Sirisena and Prime Minister Ranil Wickremesinghe. Their government worsened the country’s financial woes after promising to ease and reverse the trend, inherited from predecessor president Mahinda Rajapaksa, now prime minister.

Foreign exchange reserves have been continuously squeezed as the Sri Lankan rupee (LKR) has continued to collapse over the past two decades.

In particular, foreign exchange reserves have been continuously squeezed as the Sri Lankan rupee (LKR) has continued to collapse over the past two decades. Yet Gotabaya’s regime cannot continue to blame the predecessor as it had nearly two years to rectify the situation, which however worsened with the government’s inability to contain the second and third waves of the pandemic. of COVID-19, unlike the first. wave.

Before COVID, the nation suffered from the economic consequences of the lavishness of the previous regime, compounded by political instability, which kept investors away. This was closely followed by the “serial Easter blasts” in 2019, which severely affected the tourism sector, one of the pillars of the country’s economy. Since then, the pandemic has reduced the exports and internal remittances of large numbers of Sri Lankans employed abroad, representing the largest tranche of foreign exchange inflows.

Inflexible stand

So the 2021 budget, presented by Prime Minister Mahinda Rajapaksa, who was also finance minister at the time, banned the import of food products, including turmeric and chemical fertilizers, allegedly to encourage local farmers and l organic farming, but it created more problems than it solved everything. The real idea was to save so much on foreign currency outflows, but the urgent and unforeseen import ban caused multiple crises at different levels from farm to food table. But President Gotabaya has refused to budge, regardless of the economic realities.

Gotabaya may be a capable military strategist, but he may not be a capable political and economic administrator despite his landslide victory in the presidential election and the parliamentary sweep of his SLPP a few months later.

Government supporters hoped that the enthronement of another Rajapaksa brother, Basil Rajapaksa, as finance minister in place of Prime Minister Mahinda, would help even as the “transfer of power” raised eyebrows in many circles. Between them, Mahinda as president and Basil as economic adviser, they had driven GDP to record levels, even at the height of the LTTE war at the end of the last decade.

That magic touch has disappeared this time around, President Gotabaya sticking to the political and economic dogmatism forged by his ideological collaborators. People quickly discovered that Gotabaya may have been a competent military strategist, but he may not have been a competent political and economic administrator despite his landslide victory in the presidential elections and his parliamentary sweep of the SLPP a few months later. late.

Rice vs. Rubber Pact

The presidential declaration on the food emergency and the accompanying ordinance aimed at suppressing the hoarding of basic necessities such as rice and sugar were closely preceded by the Minister of Finance Basile announcing the release of the massive stocks held in the port of Colombo, both because of the blockages and the intransigent attitude of importers. to claim concessions where they were not due.

Hoarding and black marketing have been used both for commercial exploitation and as a political tool to embarrass the ruling government. Ahead of the 2015 presidential elections which he lost to other causes, President Mahinda stored 25,000 tonnes of Bangladesh rice for intervention in the market if political hoarding was used to smear his candidacy. Recently, the government claims to have seized over 10,000 tonnes of sugar from three wholesalers. Their motivations remain unclear.

President Mahinda stored 25,000 tonnes of Bangladeshi rice for intervention in the market if political hoarding was used to smear his candidacy.

The government has also announced massive sanctions for hoarders, but that may not be enough to end the food panic and long lines at retail stores. The situation can only improve if the government injects more foreign exchange into the system after private banks have closed the doors to importers-customers for years, or accelerates lending from the International Monetary Fund (IMF), which it does. decided to apply, quite late.

Including Sri Lanka, Third World countries have felt that IMF conditionalities that demand a tight national belt do not suit the people and are therefore uncomfortable for elected governments, who, however, cannot resist them. Sections of Sri Lankan politics, economists and civil society have repeatedly blamed the late President JR Jayawardene for inaugurating “market capitalism” in the late 1970s for the continuing economic ills of the country. nation, which were, at times, seen as more than ‘socialist intervention’.

The government’s ability to import large quantities of food products, starting with rice and sugar but against long-term repayment agreements, appears to be the only alternative. Maybe all of Sri Lanka’s essential food items have to come from the rest of South Asia or East and South East Asia. The last time the nation faced its worst food crisis was in the 1950s after independence, when the equally nascent Communist regime in China proposed the “rice for rubber” pact.

Maybe all of Sri Lanka’s essential food items have to come from the rest of South Asia or East and South East Asia.

The pact involved China exporting rice to drought-stricken Sri Lanka, then Ceylon, at prices below international prices, and importing rubber from the other country at prices higher than the world market. The Sri Lankan state and its citizens have repeatedly thanked China enough for this distant gesture. Hence the continuation of ties with China, although it is trapped in the “debt trap” with the most recent “Hambantota agreement”.

Anyone can guess why the Rajapaksa diet, which the international community believes is being sold to China, has not taken this route to increase the food supply this time around. It is not unlikely that in the face of the most recent controversies over the Chinese-funded Colombo Port City project, the government could seek concessional food imports from other countries before declaring that Beijing alone was considerate, as it did. was when he sold fighter jets to fight the LTTE in the 1990s, without quoting a price or asking for a deposit.

Looking south for a landmark

Domestically, the food shortages that accompany the long shadow of the forex crisis and COVID “mismanagement” – as the opposition has accused the government – are sure to affect the popularity of the Rajapaksas in the country. to be able to.

More importantly, socialists and homeland security experts should watch the south to see if the current crises and the failures of successive governments over the past decades could spark a “social revolution,” including one of the Sinhala majority type. -Buddhist. Recall that at a time of world socialist boom, the Sinhalese majority youth in the south of the country had rebelled under the leadership of the child Janatha Vimukthi Peramuna (JVP), a left-wing separatist group founded by Rohana Wijeweera, one of the Lumumba University, Moscow.

The presence of the Indian Peace-Keeping Force (IPKF), which ended up confronting the LTTE in the north and east, freed Sri Lankan troops to quell the second JVP insurgency.

The two “JVP insurgencies” of 1971 and 1989 saw security agencies massacre thousands of Sinhala boys and girls of childbearing age. India directly assisted the government in suppressing the first insurgency. The presence of the Indian Peace-Keeping Force (IPKF), which ended up confronting the LTTE in the north and east, freed Sri Lankan troops to quell the second JVP insurgency.

After the insurgency, the emergence of the LTTE as an unparalleled international terrorist group helped the nation turn away from the south. However, successive governments have since convinced no one of their sincerity in solving ordinary man’s problems, nor have they convinced themselves that there would not be another social upheaval and another uprising of the earlier type with the national and family economy as the main objective, as seen in the past JVP, but with a new faceless generation of young leaders.

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Analysis: Nigerian economy grows 5%, but human development continues to stagnate under Buhari http://thunderfromunder.com/analysis-nigerian-economy-grows-5-but-human-development-continues-to-stagnate-under-buhari/ Wed, 01 Sep 2021 12:23:31 +0000 http://thunderfromunder.com/analysis-nigerian-economy-grows-5-but-human-development-continues-to-stagnate-under-buhari/ Nigeria’s gross domestic product (GDP) grew 5% in the second quarter (Q2) of 2021, according to the National Bureau of Statistics (NBS), but economists think there is not much to celebrate on this subject.

Indeed, unless the 5% GDP growth is sustained in the third and fourth quarters of 2021, the annual growth of the economy may be insufficient to have a significant impact on the population.

Currently, the average growth in the first and second quarters of 2021 is 2.75%, which barely matches Nigeria’s population growth rate.

However, sustained growth of 5% for the whole year will bring annual growth to 3.9%, which is a small sign that the poverty rate has started to decline.

Lagos Chamber of Commerce and Industry (LCCI) general manager Chinyere Almona said what matters now is maintaining the rate of growth.

She warned the country needs to monitor and respond appropriately to key threats to this growth, such as the third wave of COVID-19 infections that could result in restrictions on movement.

She also pointed to a growing wave of insurgency, banditry, kidnappings and persistent conflicts between farmers and herders as factors that could slow growth in the coming quarters.

Economic growth should be greater than population growth for any government to reduce extreme poverty, economists say.

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Under Buhari, Nigerian GDP growth did not exceed the population growth rate of 2.6%. The annual GDP growth in 2016, 2017 and 2018 was -1.58%, 0.83% and 1.89% respectively.

In 2019 and 2020, the annual GDP growth rates were 2.26% and -0.125% respectively.

This explains why extreme poverty is high in Buhari, analysts say.

About 51 percent of Nigerians, precisely 105 million citizens, are in the trap of extreme poverty, according to the World Poverty Clock.

The level of poverty is one of the measures of a country’s standard of living.

“We need to grow the economy by at least 7-8% per year for five to ten years based on an investment-oriented strategy. If we don’t do this very soon, the issues of multidimensional poverty, debt and insecurity could consume us over the next decade, ”Financial Derivatives Company CEO Bismarck Rewane said in a March presentation. 2021 titled ‘Building Nigeria’s Future Through Enterprise and Innovation.’

Likewise, despite GDP growth of five percent in the second quarter of 2021, Nigeria’s economy was smaller than in the second quarter of 2019, when growth of just 2.12 percent was recorded.

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In the second quarter of 2019, the size of the Nigerian economy (real GDP or GDP at constant 2010 prices) was 16.93 trillion naira, but growth was 2.12%.

In the same quarter of 2021, the economy declared a size of 16.69 trillion naira, but growth was 5%. This means that less economic activity took place in the second quarter of 2021 than in the same quarter of 2019, despite the differences in growth rates.

An economist and private sector consultant, Muda Yusuf, attributed the situation, in an interview to ICIR, to COVID-19, which has reduced operations and disrupted the supply chain.

But the size of an economy matters because the bigger it is, the better it is for poverty reduction, economic growth, per capita income growth and business income growth, economists say.

Neighborhoods GDP at constant 2010 prices Constant market price of GDP GDP rate (%)
Q1-2018 16 096 654 186 130.50 16 234 954 952 028.20 1.89
Q2-2018 16 580 508 070 066.30 16 718 625 281 982.90 1.5
Q3-2018 18 081 342 102 865.10 18,305,126,398,976.10 1.81
Q4-2018 19 041 437 589 274.10 19,277,641,988,698.50 2.38
Q1-2019 16,434,552,653,499.40 16,569,734,732,766.10 2.1
Q2-2019 16 931 434 893 647.40 17 076 100 723 853.10 2.12
Q3-2019 18,494 114,168,275.10 18 697 323 823 071.10 2.28
Q4-2019 19 527 724 958 744.50 19 750 934 716 051.80 2.55
Q1-2020 16,741,809,922,718.40 16,893,269,794,200.20 1.87
Q2-2020 15,897,931 938,753.20 16 044 513 730 642.50 -6.1
Q3-2020 17 824 482 082 149.40 18 109 596 017 728.80 -3.62
Q4-2020 19 550 147 904 321.50 19 753 163 949 441.20 0.11
Q1-2021 16,826,890,287,979.00 16 962 505 924 448.90 0.51
Q2-2021 16,694,666 154,392.20 16,904,236,416,060.30 5

Moreover, the GDP is not a true measure of the standard of living. The United Nations Development Program (UNDP) has adopted Human Development (HDI) as a true measure of the well-being of citizens.

It was originally developed by Pakistani economist Mahbub ul Haq in 1990, but has since been adopted by UNDP.

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The HDI measures access to knowledge (education), a long and healthy life (health) and a decent standard of living (income).

In 2020, Africa’s most populous nation fell three places to 161 out of 189 countries in the HDI, with a score of 0.539, which is a significantly low score.

Nigeria scored 152 in 2015 when Buhari took power.

Apart from millions of out-of-school children (estimated at 8.7 million), especially in the northern part of Nigeria, life expectancy in Nigeria is around 54 years.

Life expectancy in Ghana and South Africa is 64 years.

Nigerian doctors are on strike as the country posts some of the world’s worst disease statistics.

Nigeria’s misery index, which is calculated from unemployment and inflation rates, rose to 50.48% in March 2021 from 14.75% in 2015.

The higher the number, the more miserable the people of the nation are.

This implies that Nigerians are three times more miserable in 2021 than in 2015.

Yusuf said there were still concerns about the macroeconomic challenges in Nigeria, reflecting soaring inflation, weakening currency, illiquidity of the foreign exchange market and increasing profile of the debt, among others.

“The impact of GDP growth on the well-being of citizens and the productivity of the investment environment is crucial. It’s the metrics that matter most, at the end of the day. GDP figures are not an end in themselves, they are means to an end.

Naira has taken a nosedive since Buhari came to power. On Tuesday, August 31, the naira was N 410.32 to the dollar on the official market but N 526 on the parallel market, weakening N 6 in 24 hours.

In November 2014, naira traded for N155 to one dollar. But it was devalued at N197 in November 2015, six months after Buhari came to power.

Analysts attribute the situation to the reluctance of the CBN to float in the forex market and its insistence on controlling the supply of dollars.

Buhari was also cited as having ordered the governor of the CBN to stop allocating dollars to certain items.

Apex Bank is constitutionally empowered to be independent from politics, lawyers say, but that is not the case in Nigeria today.

Former CBN deputy governor Kingsley Moghalu said the umbrella bank must float the naira and stop subsidizing imports.

“The government cannot continue to set the price of the naira, which the central bank is doing. If you float the naira, you have to stop subsidizing imports. Our country is structured in such a way that it subsidizes imports into the country. This generates trade-offs.

“When you float the naira, you create an incentive for those who want to export and earn forex. In this way, you structurally move the economy towards those who want to export, but have to combine it with trade policy, ”Muoghalu said.

Another measure adopted by the CBN, which has proven to be counterproductive, is the ban on importers of raw materials from obtaining foreign exchange at the official rate.

The CBN banned 46 items ranging from milk to tomatoes from accessing foreign exchange dollars. Analysts believe Buhari’s umbrella bank is wrong in simply discouraging demand for dollars and other foreign currencies.

Cowry Assets Management Limited Founder and Managing Director Johnson Chukwu said ICIR that he did not subscribe to the use of “fiat” to discourage consumption.

“I encourage the use of commercial tools. The reality is, you cannot ban the consumption of products that people need. When you do this, you are forcing this merchandise into the black market, where people will now have to pay additional fees to keep them. You cannot legislate against human consumption, ”Chukwu said.

Unemployment (33.3%) has tripled since Buhari took power, and the interest rate has been high relative to other peers.

Inflation is 17.38% and foreign direct investment has plunged.

Total FDI to Nigeria in the first half of 2021 was $ 2.78 billion, down 61% from the $ 7.15 billion invested in the first six months of 2020, the SNB said. .

“We have work to do and if we want to achieve accelerated, sustainable and inclusive growth, we must attract national and international capital with its investment multiplier to reach a GDP level of $ 1.5 billion d ‘by 2030, when our population could be 250 minutes or more,’ Rewane said.


Odinaka ANUDU

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Local production of Covid-19 vaccines http://thunderfromunder.com/local-production-of-covid-19-vaccines/ Sat, 28 Aug 2021 15:22:27 +0000 http://thunderfromunder.com/local-production-of-covid-19-vaccines/