….Advices Tinubu to crash and peg interest rate as means of solving economic problem
…Says our foreign reserve accounts should be closed
…Warns against use of dollar in Nigeria
By Chibuike Nwabuko
Abuja (Sundiata Post) – Federal lawmaker representing Delta North Senatorial District, Senator Ned Nwoko has urged president Tinubu to shun the International Monetary Fund (IMF) and World Bank monetary and fiscal policy models and look inwards and solve the problem we are into locally.
Senator Ned stated this in an interview with some National Assembly correspondents on Wednesday in his office after plenary.
The Delta-born business mogul also advised President Tinubu to crash and peg interest rate at a certain percent as a sure way of resolving the economic problems facing the country as no government leaves interest rate to be determine by the banks because they will only think about their profit and not the customers.
In the same vein, Ned also stated that the federal government must close our foreign reserve accounts. We have about 46 billion dollars on the accounts and that money is not been used by Nigerians.
We have about 46 billion dollars on the accounts and that money is not been used by Nigerians”He said the so called traders are less than half percent of the population of Nigeria, so because of less than a half population of over two hundred million Nigerians you are keeping such huge amount of money in foreign accounts.
“If we close the foreign accounts and bring the money down to Nigeria, we can now use the money to give out loans to youth entrepreneur, they are many youths who are jogging to survive and we know no loan, no grant absolutely nothing for them.
“If we have that can of money in the country it will change a lot of things because youth will collect loans and some condition attack to it and probably pay between three and seven percent of it. The money could be given to five banks to manage. This is one aspect of the colonialism.
Our people are yet to see that at 63 years after independence, we should be seeking for economic independent and not this type of baby economy where our savings or reserves are not use to develop our country, rather they are being used to develop western world.
He noted that the western world made it so hard that we must export our raw materials to them so that they can finish it and sell it back to us at hundred percent cost. Suffice it to say that we add no value to our raw materials.
According to Sen Ned, if Tinubu can have the strong will to correct the hardship Nigerians are facing in the country as a matter of urgency, first and foremost, government must take control over interest rates and come out emphatically to say that interest rate will no longer be as usual, that it’s going to be pegged at so and so starting from 1st March for example, and everybody will adjust, as well as the banks. If this is done, youth entrepreneurs can have access to loans with minimum interest rates of not more than five percent.
In his words; exchange rate has become a hydra headed issue in the country because of our over relying on foreign currencies. This he said has resulted to a situation where even petty traders in remote villages selling garri, palm oil and so on are talking about exchange rates.
Meanwhile, he said, exchange rates ordinarily should be something that concern foreign transaction, but because of our over reliance on foreign currencies, our people are fully aware that naira has no value again. “If we are sincere to ourselves we know that we have real economic problems resulting in unbearable hardship for the people.
There is no need pretending as if some money or fiscal policy can turn things around. In Nigeria we know that nothing goes up that will come down again especially in connection with interest and exchange rates and these are the bedrock of any economy.
“We must understand that we don’t have credit economy. A Credit economy is an economy where people are able to borrow with some minimum conditions. For you to borrow, there must be an interest rate that is manageable.
In most countries they have interest rates of between three to six percent but in Nigeria it’s between twelve to thirty percent. And not only that, they also ask of collateral; properties, how can one acquire all these in the first place to be able to access a loan
Sen Ned who further called for the prohibited dollar in Nigeria insisted that the government of Tinubu should stop the use of dollars in Nigeria, saying that there is no country in the world that dual currency is allowed except Nigeria.
According to him, “Once dollar is prohibited in the country, for instance, domiciliary accounts closed down, all businesses in Nigeria are transacted in naira including the sale of crude oil and gas, naira would definitely be valued.
He insisted that: “If it becomes mandatory for everything to be transacted in naira, there will be demand in naira and as such, our currency will bounce back. And foreigners coming into the country will look for how to get naira and not dollars because they are coming here to use naira.
“It will take a strong will by President Tinubu to make the announcement, though some persons may be saying British, America will fight, but the onus now will be on the president to chose between America, British and Nigerians,”he said.
“Another very important issue that needs urgent attention for our currency to have value is that, all foreign workers in Nigeria should start receiving their salary in naira. According to him, “All foreign workers in Nigeria are paid in dollars; whether they work in Oil companies, construction companies, hotels, barbing salon or even cleaners. That in itself is discriminating and has to stop.”
