Buhari Backs Emefiele’s CBN, Insists Economic Policies People-Oriented

• Drums up support for 2023 Tinubu’s presidency
• Assures Nigeria’ll be better by his tenure ending

BY EDMOND ODOK – Amid calming tirades over his perceived foray into the murky waters of Nigerian politics, President Muhammadu Buhari has given the Godwin Emefiele-led Central Bank of Nigeria (CBN) kudos for doing a great job with focused and results-yielding interventions in the nation’s economy.

For the President, criticisms of the CBN’s monetary policy are hugely misplaced because the apex bank’s management is always putting the Nigerians’ interest at the heart of policies’ thrusts and implementation.

This is as the President also expressed his unwavering resolve to have the ruling All Progressives Congress (APC) retain power at the centre and continue with his legacies come the 2023 general elections.

Clearly giving the CBN thumbs up for aiding the Federal Government’s drive to tackle the multi-faceted challenges facing the country, particularly in the agriculture sector, President Buhari hinted that things would have gone awry in terms of food inflation but for policies, like the Anchor Borrowers Programme (ABP), which has boosted agricultural production.

The President, who dismissed concerns over CBN’s independence arising from publicly adjudged interest of Emefiele in the 2023 presidency, said such insinuations are stoked by the apex bank’s unorthodox but thriving economic policies, noting that only the CBN’s board is authorised by law to determine if the Governor’s actions fall short foul of best practices expected of the office.

Furthering his defence of Emefiele in an interview with Bloomberg, President Buhari said; “The CBN governor is appointed by the President. But this appointment is subject to confirmation by the Nigerian Senate. Ultimately, it will be for the CBN’s board of directors to determine whether a CBN governor’s actions have fallen foul of the laws in place to ensure he can most effectively carry out his duties.

He said the CBN’s support has seen his administration focusing on various measures to shore up the economy and turn things around positively, adding; “But there is a sub-text to the accusations. Because the governor follows a model outside of the economic orthodoxy, he is labelled political. But the orthodoxy has proved wrong time and again.

“Instead, the governor is following an alternative economic model that puts people at the heart of policy. Nigeria should be free to choose its development model and how to construct our economy so it functions for Nigerians.”

The President also addressed worries over food shortages in the country, saying; “We can only imagine what food inflation would be today had we not initiated organised programmes to boost domestic production. And still, we do not grow enough domestically. Initiatives such as the Nigeria Anchor Borrower’s programme, helping farmers compete against artificially lowered imports have boosted rice production to 9 million metric tonnes in 2021 from around 5.4 million metric tonnes in 2015. Even in the years of drought, rice production outstripped pre-2015 levels. Imports have fallen to near zero. We are making progress.

“Against these advances, international trade remains rigged against food security in Africa. The EU’s policies in particular (see: It’s time for a new economic deal between the EU and Africa) are all rhetoric of open trade – yet their Common Agricultural Policy subsidy programmes and export of those subsidised goods create dependence, undermine Africa’s self-sufficiency, and cause food poverty and starvation.

“If only out of enlightened self-interest the West – and particularly Europe — must step up. The moral, if not economic case for doing so is unarguable. Do nothing, and more migrants from across the Sahel will attempt dangerous journeys to reach Europe.”

Commenting on his administration’s performance in the last seven years, Buhari said; “We will leave Nigeria in a far better place than we found it. Corruption is less hidden for Nigerians feel empowered to report it without fear, while money is returned; terrorists no longer hold any territory in Nigeria, and their leaders are deceased, and vast infrastructure development sets the country on course for sustainable and equitable growth.”

He further said; “Starting with our Whistleblowing Policy enacted in my first year in office, hundreds of millions in stolen funds have been returned within Nigeria. Working with our international partners, hundreds of millions in various currencies have been returned from abroad – primarily from the UK, US, and Switzerland – and used as social and welfare funds distributed directly to the poorest during the COVID pandemic and the provision of long-delayed infrastructure-roads, bridges, rail, and power.

“As an illustration, monetary recoveries (January-December) 2021 show that more than N152 billion has been recovered. Dollar recoveries for the year amount to over $386 million; more than GBP1.1 million; Euro, about 157,000; Saudi Riyals about 1.7 million; some more in digital and other currencies.”

On security, he said: “In 2015, Boko Haram held territory the size of Belgium within the borders of Nigeria. Today they are close to extinction as a military force. The leader of ISWAP was eliminated by a Nigerian Air Force airstrike in March.

“The jets acquired from the US and intelligence shared by the British were not provided to previous administrations and stand as a testament to renewed trust re-built between Nigeria and our traditional western allies under my government.

“We urge those same international partners to take additional steps costing them nothing, by proscribing another group – IPOB — as a terrorist organization. Their leadership enjoys safe haven in the West, broadcasting hate speech into Nigeria from London, spending millions lobbying members of the US Congress, and freely using international financial networks to arm agitators on the ground. This must stop.

“My administration is the only one in Nigeria’s history to implement a solution to decades-long herder-farmer conflicts, exacerbated by desertification and demographic growth. The National Livestock Transformation Plan, putting ranching at its core, is the only way to deplete the competition for resources at the core of the clashes. Governors from some individual states have sought to play politics where ranches have been established, but where there have been disputes have dramatically reduced.”

Speaking about the issues of religious tolerance and blasphemy, the President admitted long-standing religious divisions portend danger for Nigeria’s future, especially with people accused of blasphemy being stoned to death, stressing that; “No person has the right to take the law into his or her own hands. Christianity and Islam, our two great Faiths and their Great Books have far more in common than they have apart.

“Nigeria has a long tradition of tolerance that we must draw on, and we must strive to find common ground. What comes out of this tragedy is to cherish what we share, while at the same time respect our differences.’’

Also addressing issues around the nation’s economy, President Buhari, who did not mince words about endorsing the APC candidate, Asiwaju Bola Ahmed Tinubu for the 2023 presidency said; “How prescient our policies for boosting domestic production have become!

“For years we have been criticised by the likes of the Financial Times, The Economist, and others for supposedly mistaken attempts to de-globalise and re-localize food production and boost manufacturing. Now with the war in Ukraine breaking global food supply chains, ‘Davos Man’ is in retreat as the energy crisis makes countries everywhere think again about energy independence and security.

“We have spent our two terms investing heavily in the national road, rail, and transport infrastructure set to unleash growth, connect communities, and lessen inequality. This is structural transformation. It may not show on standard economic metrics now, but the results will be apparent in good time.”

Given the constant collapse of the National grid, the President said with the ongoing grid modernization, “there are hundreds of ongoing projects and initiatives attracting funding from investors. Take my Presidential Power Initiative (PPI), a government-to-government initiative between the Governments of Nigeria and Germany, with Siemens AG, to upgrade the electricity grid with a $2 billion investment.

“Once signed into law the constitutional amendment bill – recently voted through parliament – will allow state governments to generate and transmit their own electricity, further facilitating investor participation in our market and enabling states and local businesses to transmit excess supply to the grid.”

He also reacted to agitations for fuel subsidy removal, saying; “Most western countries are today implementing fuel subsidies. Why would we remove ours now? What is good for the goose is good for the gander! What our western allies are learning the hard way is what looks good on paper and the human consequences are two different things.

“My government set in motion plans to remove the subsidy late last year. After further consultation with stakeholders, and as events unfolded this year, such a move became increasingly untenable. Boosting internal production for refined products shall also help. Capacity is due to step up markedly later this year and next, as private players and modular refineries (Dangote Refinery, BUA Group Refinery, Waltersmith Refinery) come on board.

“The exchange rate is still susceptible to external shocks that can suddenly and severely affect Nigerian citizens. As we step up domestic production – both in fuel (enabled by PIA) and food (agricultural policies) – the inflationary threat shall diminish, and we can move toward unification.”