The vicious cycle of depreciation of the Ghana Cedis has urged many people in business and others concerned with the development of the state to call for a devaluation of the Ghanaian currency. Devaluation is concerned with the decrease in a currency’s value with respect to other currencies. A currency is devalued when it loses value relative to other currencies in the foreign exchange market. It is a monetary policy activity that is undertaken by a government and its central bank to correct its exchange rates problems.
Such a call is not out of place as the value of the currency keeps depreciating frequently. There has been media debates by the major political parties about who manages the currency better. This fight will not earn the state the needed answers it seeks to address its exchange rate problems.
Many individuals with knowledge in Economics and Finance had offered their opinions as to how to resolve this economic impasse. The arguments advanced in favour of a devaluation are plausible as they seem to make a short term solution. It is believed that devaluation reduces the price of a country’s domestic output. This is because inputs in the production process will be less expensive as the devalued currency will assume a competitive value. This is beneficial to the export volumes of the state because the exports of the state will increase forcefully. Exports become more competitive in the global market and increasing the national income of the state.
In the short term, devaluation seems the better option to managing a county’s currency in exchange rate crisis. The lag of time for most economic policies to practically take effect is a problem to deal with. The long term effect is that, the country’s cost of imports will increase such that domestic consumers are less likely to buy them and strengthening domestic businesses. Depreciation of a currency is not only a consequent of poor management of it, it also occurs as a result of the pursuit of expansionary monetary policies. The supply of more currencies in the economy will help expand businesses which will increase imports and ultimately affect the exchange rate.
The benefits of devaluation only seem to be short term solutions as an import dependent economy like Ghana with huge taste for foreign goods will suffer the price hikes of imports due to devaluation of its currency. Devaluation will only be beneficial in both the short and long terms if a country is export dependent as it seeks to strengthen the value of the currency and export commodities become relatively competitive.
Countries that often experience balance of payments deficits as a result of excessive imports and demand for foreign goods may not have to embark on devaluation as the terminal solution to solving their exchange rate crisis.
An alternative to devaluation for Ghana is altering the imports of the state. Import substitution industrialisation needs to be embarked on through the establishment of factories for the agricultural and manufacturing sectors.
The imports of rice, fish, meat, chicken, wheat and other commodities that can be produced locally need to be halved or prohibited. There is the need to change the import components of our trade and begin a serious internal production of some of the foreign produce with export-led growth strategies. There is the need for the state to support home-grown agricultural produce that are usually imported. The setting up of more state farms to produce rice, wheat, tomatoes etc to begin a more vigorous manufacturing activities is desirable. The import volumes of the state have great impact on the exchange rate determination.
There is a huge surplus of labour in the agricultural sector. There are also arable lands existing in many parts of the country which can be used for this purpose. More market-oriented growth strategies need to be pursued and relegate the traditional forms of dealing with the international world market.
While changing the import components of the state for a favourable terms of trade, there is also the requirement to expand the export commodities of the state that will lead to an increase in foreign exchange. Export-led growth strategies that will attract transnational corporations to partake in the development agenda of the state for it to gain access to the global market are to be rolled out. These strategies seem to offer long lasting solutions to the ever worsening rate of exchange of the state that cause political debates in the media.
An import-dependent economy like Ghana will in no time experience a reverse of the exchange rate situation after devaluation. The reason is that the long term effect of devaluation will be felt from the import of foreign goods. The depreciation of the currency must to be tackled more cautiously and devaluation does not appear a better alternative. Let’s change the import components of our trade by substituting it with local produce and increase export to earn more.
Commentator….Emmanuel Kwabena Wucharey
Tanko Muhammad, Ekweremadu and health of Nigeria by Suyi Ayodele
What happened to the Nigerian judiciary under the now retired Chief Justice of Nigeria, CJN, Justice Tanko Muhammad, is a symptom of an ailing nation. We must all come to admit that Nigeria is a country that needs moral transplant. Who will be the donor is what we don’t know. That the aeroplane-driving CJN retired after his “brother justices” accused him of misconduct is never news to celebrate. The resignation itself is never a part of the diagnosis of what ails the country. And I sincerely do hope that the General Muhammadu Buhari administration will not because of the belated retirement roll out the drums to celebrate his tough stance on the fight against corruption! The judiciary is expected to be the healthiest of the three arms of government. Its chronic illness under Tanko is a pointer to the general well being of the government in power. The undertakers should not be far away as their services may be required soon.
In Africa’s worldview, a healthy man is a wealthy man. The saying, “health is wealth,” underscores the importance human beings attach to sound health. Without sound health, man becomes useless. This is why sane countries of the world don’t play with their healthcare delivery. But it is not so in Nigeria, a country which prides itself as the “Giant of Africa”. By that sobriquet, one would expect that Nigeria would tower above other African countries in all ramifications of life. If you are wondering why we are this low in all aspects of life as a nation, just take a look at our health care delivery system. If Nigeria’s health is failing, or has failed, the citizenry cannot be healthy. For those who care to know, Nigeria is not just ill, it is terminally ill.
Some two years ago or so, I had the misfortune of rushing an ailing church member to the University of Benin Teaching Hospital, UBTH. At the close of service that fateful Sunday, a friend and I had planned to go out with our spouses. We drove out of the church premises and saw the ailing woman being aided to the road to get a taxi to the hospital. We picked her up in my friend’s car while I joined him and asked the women to use my own car. By Ehaekpen Road, the woman gave up the ghost in the car. But we continued the journey to the UBTH. At the Accident and Emergency section of the hospital, she was confirmed as BID (Brought In Dead). That was where our ordeal began. The relation in the car contacted other family members and agreed that the remains of the woman be deposited at the hospital’s morgue. To our utter embarrassment, UBTH had no BID form to take the woman’s profile and have her corpse deposited in the morgue. For over two hours, the corpse was left in our car. I had to ask one of the hospital attendants in charge to copy the information of a used BID form at the back of another used form and fill in for the dead woman. I knew then that we had bigger problems than anyone could imagine. If a teaching hospital, as big as the UBTH, had no ordinary BID form, one can imagine the state of the General Hospital at Afrikpo, or Balewa Village or at Itawure!
This is why, at the slightest discomfort of headache, the locust masquerading as our leaders jet out of Nigeria to seek medical help abroad. From personnel to equipment, infrastructure to medications, hospitals in Nigeria are killing fields. In his 2017 article titled: ‘Africa’s presidents keep going abroad for medical treatment rather than fixing healthcare at home,’ published in Qartz Africa, an online publication, Yomi Kazeem has this to say: “The preference for an international doctor’s appointment is steeped in irony as these leaders often make promises about improving local healthcare a central part of their campaigns while seeking office. But by looking beyond the continent for medical solutions, African leaders maintain a vicious cycle which keeps faith in public healthcare low while channeling substantial state resources to hospitals abroad rather than plug local healthcare gaps. In many African countries, this reality is all too apparent. According to the World Health Organisation estimates, with a shortage of 4.2 million health workers, Africa is the region with the world’s second-worst health worker shortage”. Zeroing down on Nigeria, Kazeem quoted WHO as saying that: “In Nigeria, Africa’s most populous country, the shortage will be less severe if the health system could call on the services of the up to 15,000 Nigerian doctors estimated to be working outside the country. But there’s little motivation for doctors practising abroad to return home with crumbling infrastructure, lack of drugs and poor compensation.” If in 2017, we had 15,000 Nigerian medical doctors working outside the shores of the country, your guess is as good as mine on what the figure will be now.
Nothing, in recent time speaks to the parlous state of our healthcare delivery system more than last Thursday’s arrest of Senator Ike Ekweremadu and his wife, Beatrice, by the Metropolitan Police in far away United Kingdom. According to the reports of the arrest, the former deputy senate president was accused of trafficking a child to the UK for organ harvest and slavery. A statement issued by the Met police says “Beatrice Nwanneka Ekweremadu, 55 (10.9.66) of Nigeria is charged with conspiracy to arrange/facilitate travel of another person with a view to exploitation, namely organ harvesting. Ike Ekweremadu, 60 (12.05.62) of Nigeria is charged with conspiracy to arrange/facilitate travel of another person with a view to exploitation, namely organ harvesting. They have both been remanded in custody and will appear at Uxbridge Magistrates’ Court later today. A child has been safeguarded and we are working closely with partners on continued support. As criminal proceedings are now under way we will not be providing further details”. Ever since, the senator’s team has responded to state that the alleged “organ harvest victim” is not a 15-year-old street lad, but a 22-year old adult who volunteered to donate one of his organs for Ekweremadu’s daughter, Sonia, who is having challenges with her kidney. My thrust here is not to probe into the veracity or otherwise of the claims that the supposed organ donor, David Nwamini Ukpo, was shipped to the UK legally. I would also not bother to interrogate whether Ukpo is on his own an opportunist, who, according to claims, when he realised that he would be shipped back to Nigeria after his organ failed to match that of Sonia, decided to raise false alarms of abuse and what have you. No, my focus is why, in the first instance, Ekweremadu had to depend on a UK hospital for an organ transplant operation for his darling daughter.
The problem with the Enugu-born senator is the problem with all our political leaders in Nigeria. Like the saying goes: “all are thieves but he who is caught is the barawo”. For crying out loud, Ekweremadu has been in the corridors of power since the time lizards were few. He is a confirmed “omo ijoba” (government child). Two years before the advent of the current political disaster we call democratic governance, he was elected chairman of Aniri Local Government Area of Enugu State on the platform of the defunct United Nigeria Congress Party, UNCP. He was elected into the Senate in 2003 and was deputy Senate president for 12 years, beginning with the era of David Mark, through to Bukola Saraki. In his 19-year stay in the Senate, like his other political leeches feeding fat on our patrimony without a whim of concern for the common good, Ekweremadu did not see any reason why Nigeria should have well -equipped hospitals where ailments like organ failure of any shade could be treated. Unfortunately, Ekweremadu is not the only culprit in the league of Nigerian leaders engaged in medical tourism. The league, as we all know, is led by General Muhammadu Buhari, who holds the life trophy of spending 104 days at a stretch on a London hospital bed at our expense, with the presidential jet parked at Heathrow Airport, accumulating demurrage! When we add the BTA of his personal aides who accompanied him to the UK, Buhari will go down in history as the man who spent what could have built for the nation a decent hospital for the use of the people on a single medical trip abroad. So, when news of the arrest of Ike and Beatrice Ekweremadu filtered in, what easily came to my mind is the saying that when the head is rotten, the tail will be home for maggots! Cumulatively, an August 5, 2021 report by the Premium Times of Nigeria, puts the number of days General Buhari had spent on medical tourism to the UK at 200. You may wish to ask: did Buhari not talk about the parlous state of the nation’s health institution while seeking our votes in 2014? Did he not assure us that he would not go abroad for medical attention? Kazeem, quoted earlier, answers the posers.
That done, as humans, we may also wish to look at the desperation of the father-figure Ekweremadu presents as he seeks a medical solution to his ailing daughter’s health. There is a deep prayer among my people which says: “ki Oluwa ma fi ina omo jo wa” (May God not allow us to be scorched by the death of our child). This is where I believe that our thoughts should be with Miss Ekweremadu as she battles for survival at this critical moment. It is even more important for us to spare a moment of prayer for Sonia, now that the most important caregivers of her life, the parents, are in detention. The thought that her parents are locked up in cells in the UK because of her is devastating enough for the poor girl. While we have the assurance that, unlike what we have in Nigeria, the UK Government would not allow Sonia to be left unattended to, we cannot overemphasise the importance of the presence of her parents at this crucial time. Again, that the Ekweremadus were picked up on their way to Turkey is an indication of how desperate they were to bring their daughter back to sound health. We may frown at the method employed to achieve that. We may interrogate why the replacement for the failing organ was not sourced within the family circles. In all that, we must have it at the back of our minds that every mother hen uses her back to shield her chicks from the ravenous hawk. We therefore call on the Almighty God, our Healer, to stretch His healing hands on Sonia and make this storm to pass. We pray that she surmounts this mountain before her and becomes useful to Nigerian society and humanity in general. We also pray that after this, every Ekweremadu in leadership in Nigeria will see the need to build up our health institutions and other decayed infrastructure in the country as doing so is also in their own interest. May Sonia live!
Direct or indirect primaries: The uniting factor is moneybag politics by Afe Babalola
THE Electoral Act 2022 (as amended) provides for the system of nomination of candidates by political par ties through primary elections ahead of presidential, state governorship, and legislative houses elections. Section 84(1) of the Electoral Act provides that a political party seeking to nominate candidates for election under this Act shall hold primaries for aspirants to all elective positions which shall be monitored by the Commission. Subsection 2 provides that the procedure for the nomination of candidates by political parties for the various elective positions shall be by direct, indirect primaries or consensus.
Direct primaries, as described in subsection 4 of the Act, connotes that the members of the political party will be given equal opportunity to vote for a party member of their choice as the nominated candidate of the party. It involves the participation of all registered members of a party in the selection of the party’s candidates. Indirect primaries, on the other hand, is a system whereby members of the political party democratically elect delegates at the party’s congress and, in turn, the delegates elect the party’s candidates on behalf of the members of the political party. Sections 5-8 of the Electoral Act, 2022 (as amended) generally stipulates the procedure for the conduct of indirect primaries in Nigeria.
The third category, and perhaps the least commonly adopt ed, is the system of consensus candidacy whereby all aspirants in the political party will voluntarily and expressly withdraw from the primaries and endorse a single candidate; and where there is no such express withdrawal, the political party will mandatorily proceed to conduct direct or indirect primaries. Section 9 of the Act provides as follows: 9 (a) A political party that adopts a consensus candidate shall secure the written consent of all cleared aspirants for the position, indicating their voluntary withdrawal from the race and their endorsement of the consensus candidate; (b) Where a political party is unable to secure the written consent of all cleared aspirants for the purpose of a consensus candidate, it shall revert to the choice of direct or indirect primaries for the nomination of candidates for the aforesaid elective positions. (c) A Special Convention or nomination Congress shall be held to ratify the choice of consensus candidates at designated centres at the National, State, Senatorial, Federal and State Constituencies, as the case may be.
Over the years, the choice of whether a party should adopt direct or indirect primaries has been the subject of debate by political pundits, commentators, and aspirants. The system of indirect primaries which most political parties adopt has been criticized for being easier to manipulate by party lead ers, and on their part, the delegates are expected to align with the party leadership. Another inherent defect in the conduct of indirect primaries includes some instances of the dubious manner of appointment of delegates. For instance, where a sitting Governor or President’s political appointees are made the party’s delegates, it is not in doubt that their nominations will ultimately favour their appointor’s political interest. Be sides, it is not uncommon to find dissimilar delegates’ selection at party congresses, conventions and primaries. On the other hand, the criticism of direct primaries is that it is a lot more expensive to operate and requires much more planning and organization. It is also more easily manipulated. For in stance, a strong contender in a political party can sponsor the members of his own political party to purchase membership cards of the opposition party en masse in order for such members to deliberately vote for a weaker candidate in the said opposition party to win the primaries, thereby giving him an edge in the general elections.
Notwithstanding the obvious differences in the conduct of direct and indirect primaries, there however exists no real difference because of the association of Nigerian politics with godfatherism and moneybag politics. Though it is easier to bribe fewer delegates to support a faction of the party as op posed to the reduced propensity to tilt the votes of all members of the political party to one candidate if direct primaries were held, it still does not change the fact that the underlying factor is the ability of a candidate to sway the few delegates, or the larger party members, with money.
In an interview published in the Punch newspaper on 19th June 2022, a member of the Peoples Democratic Party rep resenting the Ilaje/Ese Federal Constituency stated the im pact of money on politics. He reportedly said: “Except some are lying, it is real. Our politics is monetised. The process is monetised. Some will just come and tell you that they never pay money. They paid money. We paid money to delegates. There is no way you can survive that hurricane without effectively and efficiently releasing resources for those people (delegates). Whether you have served them for seven years and you have been their perpetual or perennial friend, it is not going to count. You just have to do the needful at that point. Again, if you don’t do it, they will not vote for you. This is because it is not just one aspirant or candidate that is doing that; it is a system. You will give what the system is asking for. There is a stimulus that the system is pumping and which the electorate will have to react to. It is not the fault of those who are currently in power or those that are seeking to come to power, it is not their fault… If you are the best (among the aspirants), you will pay; if you are the worst, you will still pay. It is just a systemic thing. Those who eventually won, it is still the same. In my area, we had three very strong contenders. We paid equally and people made their choice on who they wanted. The three people (aspirants) paid equal amounts of money. They (delegates) collected money from the three of us and made their choice on who they wanted.”
The bold admission by the honourable member of the House of Representatives excerpted above is the reality of the Nigerian political climate today. The influence of moneybags in Nigerian politics continues to hold sway in dampening the hopes of the nation in achieving true democracy. After all, the whole idea of democracy is the free will of the people in electing their political leaders, and where such “free will” is manipulated through the influence of political juggernauts, the country is further pulled away from the attainment of the best democratic policies. It accounts for the corruption and violence which have characterized many elections in Nigeria. On the day of the election, the politician who owes his nomi nation to his huge investments will naturally seek a win by any possible means. Where his reliance is placed on a political godfather, he can count on his godfather’s ability to deploy enormous wealth in a bid to corrupt electoral officials and the electorates and where these fail, violence will be deployed to bring about the desired result.
Consequently, the politician who wins an election based only upon the backing of his political godfather will feel no ob ligation to the electorate who in any event might have been disenfranchised in the whole scheme of events. He will there fore devote the entirety of his tenure of office to the promotion and satisfaction of himself, his cronies, and his godfather. There is an unhealthy synergy between godfatherism, money bag politics, and poverty. It is the entire citizenry who suffers the effect of political office holder’s obligation to recoup his investments and/or satisfy the whims of his godfather who, more often than not, are the actual persons in power.
AARE AFE BABALOLA, SAN, OFR, CON, LL.D (Lond.)
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