” Hunger, Starvation and Famine have been the immediate challenges of humanity from ages. However, the Strength of a great society is the spirit and capacity to change” .
It is in line to the above statement, by Adam Smith, that, I want to on behalf of the Nigeria Freight Forwarders wishes to Pour out our mind on the present state of our Economy, especially, as it relates to the international trade supply and security chain, within our gate-ways, as follows:
1). As professionals, we do acknowledge and commend the commitment of the present administration, in it’s demonstration of strong will to tackle the monster called corruption, which had overtime eating deep into our National fabric, even, though, some sections of the populace, are insisting, that, the daily administration of governance (paying adequate attentions to other aspects of our national well-being), must not be sacrificed on the alter of concentration to loot recovery alone.
2). To also, commend the administration for resisting the temptation to devalue our National currency (Naira) amidst economic meltdown. Even though, a school of thought thus suggest, that, government inability to control the fluctuations inherent in our foreign exchange performance is a subtle or an indirect devaluation process.
3). To further state that, we have observed the demonstration of a strong leadership character and administrative directives, generally on other sections of the economy, though, that, some Nigerians are of the opinion that, appointments effected so far appears to be lopsided.
4). To note that, the administration styles in its policies implementation process, seems to be harsh and anti- people oriented policies. For instances, no matter how good the deliberate policy to protect the local industries is, viz a viz the import foreign exchange policies, the placement of 41 trade products on a semi imports exemption list, the inconsistent benchmarking of foreign exchange rate for Customs import valuations purposes, etc are such sensitive policies, that, requires a careful approach, by way of policies graduating process.> To emphasis that, such negligence or policies graduating process is also responsible for the government non meaningful performance in the aspect of cushioning the effects of the ailing economic hardship, rather, the harsh implementation of it’s policies further compounded the hardship.
5). To thumb up the administration in its non compromise stands on issues of safety and security concerns. We observed that, notwithstanding, the threats by militants groups, it ensured that our international (territorial) water ways are adequately policed and navigable, to allow for shipping activities.
6). To Laud the government efforts through the transport ministry, for its resolve and commitment at embarking on midwifing process, that will enact the past glory of re-establishing a national fleet, under a public private arrangement with the Singapore investors. This high hope rising, positive National imaging, sectoral and Professional boosting.
For over 15 years we have been priding ourselves as a maritime nation, without any ocean going vessel plying the world deep blue seas.
However, government officials involved in this process must watch against the pitfalls of partnership agreement with respect with the new public management theory and the sad experiences thereof.
7). To cry out loud, that is, to strongly reinstate and constructively posit from a stand point of professional inclination our notations, as follows:
A. FOREIGN CURRENCY VS NAIRA, DEBTS VS LOANS AND INFLATIONS VS CAPITAL FLIGHTS:-
From year 2010, our international creditors have said to us (as a Nation): ” Tighten your belts, increase your savings, stop your spending and earn your way. Our question has been, why didn’t this happen to us, even where and when the world bank in its wisdom assigned an economist as our finance minister to coordinating our finance
At a time we had a large reservoir of healthy credit balance of trade, occasioned by the bumper, reasonable patronages, high rising crude oil sales from year 2000 to 2014(over fourteen years).
Notably, Nigeria like it is with other Countries, globally, banks in, insures in the Dollar denominated and dominated financial environment. The implication being that, our National currencies was seemingly left swimming in the ocean of unequal and unleveled playing field, to say the rest even the government at National level were given preference to Dollar denominated transactions, where local contractors are being paid in dollar denominated notes.
We can not say that Dollar transacts paripasue with the Naira, but we make bold to say that, Naira is seriously overwhelmed nationally by the amount of dollar in circulations. The Central Bank was seen commitedly busy issuing licenses to the Bereaue de change agents, but the reality is that when we operate in a key currency, it takes longer for the whistle to blow, as it appears evidential this days.
It is a global assertion that, the trouble with debts is that it must be paid back, and the interest compounds against the Nation. The truth is that, each time the Government loans $40 billions at 10 percent interest per year, in eight to ten repayment years period, Nigeria will incur another $40billion thereby owing $80billion to the international creditors. So this is the burden of collecting or loaning capital from the global finance institutions or any source, and this has been our administrative approach and economic realities of our dear economy in the past 30 years.
Therefore, if Nigeria has to spend its hard currency earnings for interest and amortization, then it can’t buy American farm machinery and American Pharmaceuticals, telecommunications equipments, aircraft, ships,etc.
These suggest why our country in flooded with substandard and counterfeited items all made in China. The Nations Product Standard Regulatory agencies are now encouraged to thrive as an extended revenue generating arm of the government, other than a firm regulatory obligations to the citizenry.
This practice is a major conduit that promotes inflations as goods sold at the market overt are not in commiseration with their currency value, a huge wastage of money on goods that may not last beyond the tasting period from the warehouse of the importer to point of usage (house), in few days, by the next 30 days it’s all over, an individual goes to purchase again, this is common with finished products imported into the country.
This practice has gained the status of a reoccurring decimal, whereby, the negative impact of its re-occurrence, promotes the subtle inflations, clamored against by the helpless Nigerians.
While not loosing sight of the masterminds of inflations, we observe in a swift practices, also reported and reasoned that, both some operating Nationals and the so-called foreign investing firms, will at any slightest information with respect to predicted inflation, they move their money to Geneva and Newyork (Same loaned, but issued out by way of contract awards, purchases, etc or embezzlement, treasury looting ), so 70% of the same loan goes back to sit tight in the same bank of creditors bank. What a puzzlement it is!.
Our cry is that, most of this Loans are not seems to be judiciously use, but defeated the National objective for such loan, for instance, the Dasuki Gate has shown Nigeria how best those reposed with leadership manages and administers our finance. >
We cry because, we are living in the knowing that, most of the socalled Foreign Direct Investments – FDI are a mere arrangee by some political office holders and their allies. This suggesting, why the government failed to come to terms with the reality that, Markets are bigger than government, and it does not even supposed to be debated in a parliament.
We cry because, it’s obvious that, even when the dollar depreciates or appreciates we seems to lost economic solutions, as interest rates over time has rendered our Currency and the manufacturing sector highly uncompetitive, whereby, either ups or down, it accelerates inflation rates, then in a swift moves the socalled, Foreign investors cash in their chits for farms and buildings and companies, tangible assets. They cant cash their chits for Waikiki because they already owe it.
Our well meaning international traders, who with their calculated business risks, considerations and reservations to the import foreign exchange policies, decided not to involve in self devaluation of their capitals, opted for investment in property development, and capital hoarding. This collective resolves, though singular, open a haven of red tapes, for those who choose to wether the storms, in import continuation, hence, the gradual decline in trade volume.
B. OUR POPULATIONS VS WORKFORCE : A VAIBLE ALTERNATE SOUND ECONOMIC BASE =>
In China with its staggering populations figure of over 1.3 billion people, about 250 Million people constitutes China’s new middle class of business people, scientists, teachers and technicians. 350 Million people are agricultural workers. 200 million are experienced industrial workers and over 240 million experienced service employees, etc.
Foreign firms are investing in the Chinese economy, taking advantage of Highly educated workers, low cost, high talent labour pool. For instance, over 750 foreign firms have stablished research facilities in China.
The Chinese Universities produce about five million new graduates and over 8,000 Science and Engineering doctoral degree holders per year. This is also typical of Japan and Singapore, where per year produces 80% Engineering graduates.
In Contrast, we cry, because per year our universities, produces more of Mass Communication, lawyers, accountants, political sciences, etc graduates. It thus appears, that, over fifty percent of our Workforce are unemployed, those gainfully employed may not be adequately effective, uncompetitive, suggesting that capitalism was being pronounced dead on arrival. > Our democracy and democratic institutions itself appears unstructured, visionless, weak, indecisive, decadent, no match, etc. Stagnated hope at moving the Economy towards a market economy. No visible solution on how to open it up either religiously or pragmatically.
The prevalent practices of the Foreign investing firms or multi-nationals, refusal or reluctancy to directly, promptly and meaningfully employing our citizenry, other than indirect employment model, leaves the Nigerian Labour Congress in dilemma.
We cry because, even with the efforts accredited to revolutionizing our agricultural sectors, there is no define light near the tunnel. Critical farming activities has been opined to be the bighorn’s nest.
We cry because, it seems to us that our past government before now has lost and compromised regulatory obligations on selfish grounds. Our Country has become a haven for monopolists foreign firms increase services with impunity and total disregards and disreference to our consumer performance index.
We cry because, our Mining sectors, Steel sectors, Auto Sectors, Transport sectors, manufacturing sectors, etc are still political promises, which by implications hampers on our export logistics capacities, making us uncompetitive professionals, who only concludes the export process initiated by a Forwarder at origin port.
We cry because our human resources and research development (HRRD) is stagnated.
We cry because our data and statistics are not verifiable, we can not rely on the National population census of estimated 170 million any more, it does not meet economic realities in relation to National budgetings, as such we have lost confidence on the templates or parameters used at arriving at our annual budgets.
C. EDUCATION VS EDUCATORS= A GRADUAL MOVE TOWARDS VIRTUAL SCIENTIFIC AND TECHNOLOGICAL ILLITERACY.
Agreed that under the prevailing education system, our students go to school for a little over 250 days as against the less than 220 days of the American students, yet majority are not fully educated by the time they graduate due to improper founding and noticeable imbalances in the education sector.
We make bold to say that, for instance, out of say 700,000 high school graduates per year, at least over 300,000 are functionally illiterates and 150,000 as dropouts. By our estimation 3 out of 5 young adult students can not summarize the main point on a newspaper article and many of them don’t read newspaper, but are social media literate.
The implication is that, dropouts and remedial training will continue to cost the education sector in an ideal situations a minimum of #30billion per year if prompt and careful records is anything to go by.
In an industrial environment that is capital intensive like ours, where globally newest and innovative machinery are emerging by the day and a worker can not Operate numerically controlled machine tools he or she don’t understand fractions and scales.
For instance, in modern aerospace and defense companies, are now using CADCAM and CADCAE (ie advanced techniques, computer – aided design and manufacturing). But as job demands is expected to grow, filling in for national capacity purpoese, where are the qualified and employable employees?. We then, begin to ask and imagining, do we really have a viable and well mentored civil service in place or what manner of civil service, does the political leaders and administrators are preserving or bequeathing for posterity sake???.
We cry because, even as at this point, we are yet to see private interventions by way of forming a consortium with junior Collages to create an apprenticeship program with degrees in manufacturing technology. For example, likening Nigeria (250days a year) to Japan, where Ninety Five percent of Japanese students go to school 240 days a year, by these program have completed the equivalent of two years of collage.
However, we are observing the ongoing restructuring exercise in the Education sectors under the present administration. Our hands are not folded yet.
We are crying because, we knew before now, that, even though democracy have the capacity to reengineer and repairs a system, but our young students don’t understand how democracy can reform the education sectors and the society at large. This is the existing gap between the government and the governed.
We cry because, in the recent times, most of our educators with 30years experience can not boast of producing a cerebral lawyer out of the law school. With due respect to my respected legal luminaries( officers in the temple of justice).
We cry because, before our collage disciplines problems ranges from: talking(noise making in the class), chewing gum, running in the halls, getting out of turn in line, wearing improper clothing or uniform, not disposing papers in the wastebaskets; but today, our discipline problems now includes: drug abuse, alcohol, rape, robbery, assault, burglary, arson, murder, vandalism, extortion, gang warfare, venereal disease, occultism, kidnapping, etc.
We cry because, the economy has battered the family unit. Both mother and father are out in the streets, markets, work environment, wanting to make ends meet, thereby compromising their parental roles and home front, against the background that, the family units is the integral part of the larger society. As such moral upbringing is compromise at the alter of unstructured and harsh economy
D. EMBARKING ON HIGH TAX REGIME: A MASSIVE TAXATION ON THE ALREADY IMPOVERISHED AND EXPLOITED LARGER NUMBER OF THE POPULACE.
As we watched the unfolding events in relation to the more of the Dausiki-gate and its inherent exposee so far, we also saw the circulation through the social media of names of Treasury looters and amounted looted from the treasury, the administration had published total amount recovered from looters but withhold the names of those who stole from the treasury among the political class.
We cry, because , we know that, it is the desire of every Nigerian that all stolen monies be repatriated back into our treasury. Such repatriation has the capacity to carter for and improve the life of the masses, other than the ongoing further exploitation of the suffering masses, through un-graduated foreign trade and exchange policies.
We cry because, the masses has come to the conclusion that, all our oil wind fall and capital earnings where not judiciously administer for their interest, but was selectively shared among the political class and their allies.
We are crying, because, it’s obvious, that, the oil wind fall has sort of seized, against a dwindling selling cost per barrel, it is expected that those who shared our common patrimony should make higher sacrifice by way of paying back through taxation and plowing back through local investments/job creations. Government can not claim not knowing them, within and out.
We are crying because, the ongoing alternate revenue via taxation brings to mind the non deliberate steps to revamp or the failed or near absent of a Social Security Funds, before now. Presently we are having financial crisis, while we had a robust and reasonable inflow of income that were never saved or properly managed, even as the perpetrators are freely galvanizing the world.
We are crying because, we observe that, there are many financial imbalances here and there, but suffice to ask, what about the non tariff barriers, those Customs and practices that are not on government schedules or budgets, including those that are not within the eyes of the government, taking a cursory look at our international trade and maritime sectors.
We are crying because, we are still wondering as to, What road map have the government developed to correct this imbalance?>
We cry because, our National Anthem is no longer a song of equity , it is supposed to be a call to obey, to serve with all our might, in love and honesty to grow, one nation bond in freedom, peace and unity, but this lofty patriotic ideals is eroding us, because, in the face of depression, the disparity in wealth grows greater between the few rich and the majority poor, this disparity is one cause of hunger in the land, the rich are getting richer not because their stock prices are going too high, but because they are embezzling and looting the treasury using their political might and offices.
We cry because, as professionals we don’t know what figure represents our National Savings rate, We know of other nations, but ours are not specific.
We cry because, there are no clear directions, nor deliberate efforts by the Government towards the acquisition of foreign companies or any details of its measures in purchasing foreign government bonds or an investment profile of its investments in foreign natural resources. But we can circulate figures of looted and stolen capital all over the place.
We cry because, it’s difficult to believe any statistics on domestic capital accumulations, other than, we are witness to the conspiracies called massive privatization of public enterprises and at one time we are told that our Gross domestic product rate (Gdp) has surpassed that of south Africa with energy generation of 60,000 megawatts against our wobbling and fumbling energy capacity of 4,000megawatts.
We cry because, those who looted the treasury are not in prison but using the stolen common patrimony to exploit our judiciary further.
We cry because, even though there are potentials for economic greatness, yet the chances are brink.
We are crying because, there are no deliberate plans to improve our export base, since infrastructures that will Fast-tract freight stations are not evenly in place. So freight forwarding profession is limited.
We are crying, because, our agricultural sector, still records high rate of produce wastage’s per annum, due to the absence of an effective and efficient national storage facilities and commodity board.
E. THE NEW PUBLIC MANAGEMENT: POLICY VS EXPERIMENTING TOOL…..to be continued.
