" /> As Tunde Bakare misspeaks | Hallmarknews
Published On: Wed, Jan 27th, 2016

As Tunde Bakare misspeaks

I took my time to go through the so called state of the nation address released by Pastor Tunde Bakare, the general overseer of the Latter Rain Assembly, and could not but wonder what agenda he was pursuing and you may ask what kite he is flying in some of the far reaching statements he made particularly regarding the role of the central bank which in his opinion had contributed negatively in more ways than one to the travails of the economy. I do not have issues with those who have dedicated their lives to work in the vineyard of the Lord lending their voices to the voiceless and the downtrodden by drawing attention of those in government to be more responsive and accountable to address their plight. But when a man of God dabbles into technical issues as in this case he has in my considered opinion breached the divide and thereby exposes himself to all manner of accusations.

Godwin Emefiele just happened today to be by divine providence the governor of the central bank. Yes he provides leadership but he cannot personify the bank. The central bank is a robust and well-founded institution with a collective of expertise for the management of the economy such as it is not possible to find in any other institution in this country. The problem confronting this economy is well known to everyone and must not be mischievously and wrongfully ascribed as due to lack of expertise on the part of anybody as some compatriots would want us to believe. The fact that the Nigerian economy suffers vulnerability and is exposed to shocks in its dependence on income from the oil sector is well advertised. The price of oil fell from a high of US$116 per barrel in June 2014 to $33 per barrel in January, 2016, a decline of over 70 percent, and available data indicated that when prices were high the CBN got about $3.2 billion inflow monthly. Today, the bank receives less than $1 billion every month yet at the same time the export bill increased from N148 billion in 2005 to the current level of N920 billion! And this in a nutshell captures the dilemma of the central bank as it grapples with the challenge of controlling the rate of exchange as the reserves deplete without the immediate prospects of any accretion which had necessitated all the controls almost everyone is now complaining about.

Tunde Bakare without caution or decorum at the same breath accused the central bank of worsening the subsidy situation, accused it of irregularities with its forex policies, its wrongful management of the liquidity (currency in circulation) and for manipulating the 2007 CBN Act as it removed all the controls in the 1999 Act which regulated its powers regarding the management of liquidity in the economy. And you cannot but wonder how somebody with at best basic appreciation of the mandate and operations of the central bank could make such a statement including that the governor of the central bank in saner climes should have by now been cooling off in retirement because the bank acted on a mandate from the president. He thoroughly went overboard and in my opinion breached the boundary which acknowledged men of God should respect. It appeared he was mandated to do a hatchet job for those who have been angling to replace the governor of the central bank. Let us cursorily examine some of the observations made by Bakare is his state of the nation address.

He claims that adequate management of the exchange rate would remove the need for subsidy! It is difficult to underpin the logic here particularly in the context of what we all know now about the scam infested subsidy payment. If anything the current posture of the central bank in its refusal to allow the naira to go into a free fall as ‘economists’ recommend that market forces should be allowed to determine the rate could have worsened and exacerbated the subsidy payment situation. He accuses the CBN for being a conduit for politicians because the central bank acted on the mandate from fiscal authorities to release funds. The CBN is banker to the government and just as in our relationships with our respective banks we should ask ourselves if our banks could refuse to honour our cheques when properly drawn and our account is funded? And in this case you are talking of an unequal relationship. Will President Buhari today ask the central bank to release money and the bank flaunts that instruction! He castigates the CBN of the perpetration of corruption in 2007 review of the CBN Act which to all intents and purposes simply updated the 1999 Act as it appropriates to its self the sole responsibility of determining when to reorder the printing of currency notes. The CBN has a model of the economy which determines optimal liquidity based on the level of productivity and that is consistent with the perceived need for the maintenance of price stability. And the determination of the level of currency in circulation is therefore a technical issue which is intelligible only to the initiated and so it is difficult to conceptualize how the responsibility to determine the optimal level of liquidity in the economy could be domiciled elsewhere. These are really technical matters which a pastor, a man of God, has no business championing the way forward!

Dr Boniface Chizea wrote in from Lagos

 

 

 

 

Leave a comment

XHTML: You can use these html tags: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>

Recent posts

  • Nigeria lacks leaders with moral compass – Amb Keshi

    By Obinna Ezugwu Former Permanent Secretary, Ministry of Foreign Affairs, Ambassador Joe Keshi has decried what he called the lack of moral compass among Nigeria’s political elite, noting that poor leadership was the country’s biggest challenge. Keshi who bared his mind in a chat with BusinessHallmark in his Lagos home recently, regretted that virtually all […]

  • Non Yoruba in S/West inaugurate forum, vow to take rightful place in zone’s politics

    By Obinna Ezugwu Political and cultural leaders of various ethnic groups resident in the South West, Saturday last week at Ota, Ogun State, came together under the aegis of Non Yoruba Indigenes Empowerment Initiative, to seek ways of working together for a fair deal in the zone’s polity ahead of the 2019 general election. Various […]

  • Don’t celebrate yet, agitation for restructuring not over- Uko warns presidency

    By Obinna Ezugwu Founder, Igbo Youth Movement (IYM) and Secretary General, Eastern Consultative Assembly (ECA), Evang Elliot Uko has warned against any suggestion that the South East geopolitical zone has been “forcefully” and “violently” pacified as according to him, such is false. Evang Uko who is also the Deputy Secretary of Igbo Leaders of Thought […]

  • Nigeria’s Debt Service ratio falls to 45%

    Nigeria has made significant improvement in its debt-service-to-revenue ratio as it dropped from 66 per cent to 45 per cent. This is coming on the back of improved revenue mobilisation from both domestic and foreign sources. The government has been aggressively driving its tax reform with the introduction of Voluntary Assets and Income Declaration Scheme […]

  • Banks’ NPLs reach 10-month high in Q3

    FELIX OLOYEDE Non-Performing Loans (NPLs) in the Nigerian banking industry hit 10-month in September, latest data from the the Nigeria Deposit Insurance Corporation (NDIC) has shown. The report quoted by CNBC states that NPLs in the Nigerian banking sector reached N2.42 trillion at the end of Q3 2017, which is 10-month record high. Muyiwa Oni, […]

  • OPEC Crude Output Drops to Six-Month Low

    Crude production from the Organization of Petroleum Exporting Countries dropped again in November to a six-month low. Total production fell 80,000 barrels a day to 32.47 million a day last month, according to a Bloomberg News survey of analysts, oil companies and ship-tracking data. That was the lowest level since May, when output was 32.29 […]

  • Lagos revives abandoned waste to energy resourcing projects

    By ABATAN ADEWALE JOSEPH Lagos state government is exploring every available opportunity to ensure power supply in the state in view of the dwindling performance of the energy companies in the country. As the business and industrial hub of the economy, Lagos has suffered huge economic losses on account of poor power supply. Governor Akinwumi […]

  • FG appoints Abdul Zubair to replace suspended SEC DG

    The Securities and Exchange Commission (SEC) on Monday announced the appointment of Abdul Zubair as acting Director General. The commission while making the announcement, also reassured the investing public of continued stability of the Nigerian capital market following last week’s suspension of its Director General, Mounir Gwarzo. It would be recalled that Gwarzo was directed […]

  • Kano spends N9bn monthly on salary payment, says Ganduje

    The Kano State Governor, Dr. Abdullahi Ganduje, has said his administration spends N9 billion monthly on payment of workers’ salaries. He added that this effort was commendable in a period where most state governments have not been able to pay salaries as a result of the economic situation in the country. He spoke  in Kano state […]

  • FG’s Npower scheme derailing, faces imminent collapse – Investigation

    By AYOOLA OLAOLUWA The N-Power scheme, introduced by the Federal Government, as a social safety net to reduce the rate of graduate unemployment afflicting the country, is fast derailing from its original objective, and faces imminent collapse, Business Hallmark findings have revealed. While the Federal Government, particularly its major proponent, Vice President Yemi Osinbajo, had […]

  • Gwarzo: The many troubles of a regulator

      By FELIX OLOYEDE These are unpleasant times for Mounir Gwarzo, Chief Executive Office, of the Securities and Exchange Commission (SEC) as he was placed on suspension last week by a previously gun shy Minister of finance, Mrs. Kemi Adeosun. Gwarzo’s position as SEC boss became shaky as a nongovernmental organisation,   Centre for Anti-Corruption and […]

  • 2018 budget: High on hope, low on prospects

      .           Promises of growth and development may be unattainable The 2018 budget will go down in history as the most vilified and repudiated by the legislature that is supposed to give it a stamp of authority. Last week, the two chambers of the National Assembly took a perfunctory appraisal of the budget and consigned […]

  • Anxiety rises over health of banks

    …as recent Fitch downgrade poses new questions BY TESLIM SHITTA-BEY All may not be as well with Nigerian banks as the domestic regulator, Central Bank of Nigeria (CBN), would have many believe. Buried in a heap of poor quality loan assets in the guise of high none performing loans (NPL’s), a growing number of banks […]

  • Maina’s can of worms

    By OBINNA EZUGWU At the hearing conducted by the Hon. Aliyu Madaki-led House of Representatives adhoc committee investigating the reinstatement of former chairman of the Presidential Task Force on Pension Reforms, Abdulrasheed Maina into the federal civil service last week, Nigerians were treated to a show of childish buck-passing. One could draw a parallel between […]

  • Resurgent Equity market signals stronger economic recovery

    By OKEY ONYENWEAKU Investors in the Nigerian equity market have every reason to be happy as the year gradually winds down. Those of who invested early in the year and carefully mixed their portfolio based on the NSE 30 Index would have made a kill should the market close bullish. This is reflected in the […]

  • (Editorial) APGA, a future in jeopardy  

    The All Progressives Grand Alliance (APGA) fought a good fight to retain power in Anambra state last month. Should the result have been different, and it easily could have been, it would have marked the beginning of the end for the party. Power of incumbency, emotional attachment to APGA among the Igbo, rifts within the […]


Visit us on Google+