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E-Naira adds no value to Nigeria’s economy – Expert faults FG

Published

3 years ago

October 26, 2021

Following the launch of the much anticipated digital currency, e-Naira, which is the first of its kind in Africa, as social justice expert has raised concerns.

President Muhammadu Buhari had launched the e-Naira on Monday at the Presidential Villa, Abuja.

The Central Bank Digital Currency (CBDC) and its underlying technology, called blockchain, has the ability to improve Nigeria’s Gross Domestic Product, GDP, by $29 billion over the next 10 years, President Muhammadu Buhari had said.

E-Naira, according to Buhari would enable the government send direct payments to citizens eligible for specific welfare programmes as well as foster cross border trade.

The digital currency has the capacity to ensure economic growth through better economic activities, increase remittances, improve financial inclusion and make monetary policy more effective.

But speaking on the issue, the Lead Director of Centre for Social Justice, CSJ, Eze Onyekpere, faulted the launch of e-Naira.

In a chat with DAILY POST, Onyekpere lamented that the newly launched e-Naira adds “no spectacular value” to the economy.

Describing the latest action of the government as “cosmetic,” the CSJ Lead Director wondered what value the digital currency would add to the economy.

He said: “I think the important thing right now is what adds value to the economy in terms of job creation, stabilizing our currency, economic growth, and reducing the run on the Naira.

“So all these, be it e-money or x-money, is not adding any spectacular value; it’s just a different format of the money available.

“For me, it’s not about having the capacity or not, of course we have it; but it’s a little bit cosmetic; what value is it adding to the economy?

“I’m yet to see any major value, is it going to create jobs for the teeming youths? Is it going to return the value of the Naira? Is it going to reduce inflation? Or it’s just one of those formal things that doesn’t hold the substance of the challenge of the Nigerian economy?”

DAILY POST observed that one of the major threats to the digital currency is fraud, and the Nigerian government launched the e-Naira at a time when the country is witnessing an escalation in advanced fee fraud popularly called Yahoo Yahoo.

Some Nigerian youths have taken to Yahoo Yahoo as a shorter route to economic empowerment, which is a direct result of the government’s inadequacies to provide jobs and ensure improvement in the quality of lives.

Recall that a Nigerian Instagram celebrity, Ramon Abbas aka Hushpuppi and his cronies had used financial platforms like Bitcoin to hide some of the loots they acquired from Yahoo Yahoo.

However, Onyekpere urged the Central Bank of Nigeria, CBN, and security agents to be proactive in protecting the digital currency from fraudsters.

He said: “Everything that has an advantage must have a disadvantage. E-money does not necessarily means fraud, and as some people are planning it; there should be security measures to put in place by CBN, security agencies, and financial intelligent unit, who should work towards curtailing such, that is why we pay them.

“That people can commit fraud should not be a reason why we should not operate e-money. I think we should work towards curtailing any negative tendencies.”

Eze Onyekpere is a lawyer with specialization in development law including electricity reforms, fiscal governance, human rights and constitutional reforms. He has worked on electric power sector reforms, privatization, gender and trade policy and liberalization of education.

Daily Post

Related Topics:e-naira Economy Expert Featured FG Nigeria

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Finally, NERC unbundles TCN, creates new system operator

Published

2 days ago

May 4, 2024

Trends Admin

Finally, NERC unbundles TCN, creates new system operator

The Nigerian Electricity Regulatory Commission (NERC) has set up the Nigerian Independent System Operator of Nigeria Limited (NISO) as it unbundles the Transmission Company of Nigeria (TCN).

The transmission leg of the power sector has over the years been seen as weakest link with obsolete equipment.

The unbundling announcement is contained in an Order dated April 30, 2023 and jointly signed by NERC chairman, Sanusi Garba, and vice chairman, Musiliu Oseni.

By this order, the TCN is expected to transfer all market and system operation functions to the new company.

The commission had previously issued transmission service provider (TSP) and system operations (SO) licences to the TCN, in accordance with the Electric Power Sector Reform Act.

The Electricity Act 2023, which came into effect on June 9, provided clearer guidelines for the incorporation and licensing of the independent system operator (ISO), as well as the transfer of assets and liabilities of TCN’s portion of the ISO.
In the circular, the commission ordered the Bureau of Public Enterprises (BPE) to incorporate, unfailingly on May 31, a private company limited by shares under the Companies and Allied Matters Act (CAMA), 2020.
NERC said the company is expected “to carry out the market and system operation functions stipulated in the Electricity Act and the terms and conditions of the system operation licence issued to the TCN.
“The name of the company shall, subject to availability at Corporate Affairs Commission, be the Nigerian Independent System Operator of Nigeria Limited (“NISO”),” NERC said.

Citing the object clause of the NISO’s memorandum of association (MOU) as provided in the Electricity Act, NERC said the company would “hold and manage all assets and liabilities pertaining to market and system operation on behalf of market participants and consumer groups or such stakeholders as the Commission may specify.”

Business

Naira depreciates again, trades at N1,402/$

Published

3 days ago

May 3, 2024

Trends Admin

Naira depreciates again, trades at N1,402/$

The Nigerian currency, naira, on Thursday slightly depreciated at the official market, trading at N1,402.67 to the dollar.

Data from the official trading platform of the FMDQ Exchange, a platform that oversees the Nigerian Autonomous Foreign Exchange Market (NAFEM), showed that the naira lost N11.71

Naira depreciates again, trades at N1,402/$

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Appeal court takes over NURTW case as NIC withdraws

Published

5 days ago

May 1, 2024

Trends Admin

Appeal court takes over NURTW case as NIC withdraws

The National Industrial Court has withdrawn from a case involving Alhaji Najeem Usman Yasin, Board of Trustees chairman of the National Union of Road Transport Workers (NURTW), and Alhaji Tajudeen Ibikunle Baruwa’s ambition to return as president of the union over lack of jurisdiction.

The industrial court’s decision was made to avoid conflict with the Court of Appeal, where the matter is already being heard.

Before the NIC announced its decision to hands-off the case, the defendants’ counsel, Mr. O.I. Olorundare SAN, had informed the court that the matter is currently before the Court of Appeal, Abuja division, and that the industrial court could not continue to adjudicate on the same matter.

The counsel cited authorities to support his claim, adding that the National Industrial Court does not have concurrent jurisdiction with the Court of Appeal.

The presiding judge, O.O. Oyewunmi, struck out the case, stating that the Appeal Court had taken over the matter and that the Industrial Court must respect the hierarchy of courts.

Alhaji Yasin and six others took the case to the Appeal Court, challenging the decision of the industrial court recognising a delegates’ conference held on May 24, 2023, where Baruwa was proclaimed as President of the union for a second term in office.

With the latest NIC judgement, both parties will now proceed to defend their positions at the Court of Appeal and await the final judgement.