COVID-19: Forget CBN palliatives! Here are 13 quick steps to jump-start Nigeria’s economy

What has been unveiled so far by CBN are mere palliatives, and are inadequate to stop the looming mass business failure.

The 13 suggestions below should be looked into by the government.

1, Nigeria businesses that are 5 years old and above should be allowed to draw up to a maximum of 20% of their 3 year-average yearly Turnovers as loan at 5% interest rate with one year moratorium within 7 days after the lockdown is lifted, using their businesses as collateral. When China became serious on transformation, Chinese businesses get cheap loans (5%) within 72 hours of submitting their loan applications.

2, 50% salary-subvention for 3 months: April, May June 2020 from the government for all Nigerians working in corporate organisations.

3, CBN to mandate Commercial banks to extend moratorium on the existing business loans that have fallen due by additional one more year without penalties.

4, Raise $50 billion from what I call: Africa Diaspora Investment Fund (ADIF). Interest on savings on fixed deposit has evaporated in some developed economies, indeed, negative interest in some countries like Switzerland. Therefore, Interest rate of 3% for the Diaspora investors will be sweet music to their ears. $50billion can be raised from 10 million Africans in the diaspora investing an average of $5k. This is better than China or IMF money with their impossible conditionality. AfDB can be called upon to play the midwifery role.

5, Reduce salaries, allowances and perks of all politicians by 50% with effect from April 2020, starting from Mr President and his Vice.

6, Give ONE-OFF STUDENT-BURSARY of N50, 000 each to all students in secondary and Tertiary institutions across Nigeria in both Public and Private institutions. This will bring instant stability to the society especially the Education sector which is one of the biggest employers of labour.

Read also: CBN lifts suspension on cheque clearing

7, NNPC must reduce its cost structure by 30% and save about $5billion yearly for government to spend. If some OPEC+ best-in-class—cost-efficient-countries can achieve a production cost of about $12- $15/barrel, why not NNPC? NNPC’s current $30 production cost is unjustified. Cost reduction is possible by cutting-off all the slab, and eliminate sundry wastes in purchasing, travelling, hotel, and entertainment expenses. NNPC should engage a consultant to achieve this, if need be.

8, Federal Government, CBN and Lagos State to prioritise Dangote Refinery as a ‘’Critical National Security Asset’’ backed up by Executive Order the same way President Trump and XI prioritised Rare Earths minerals in America and China. The refinery should be accorded 101% support to ensure it is commissioned by year end. Why? Dangote’s Refinery is to Nigeria what Huawei is to China, or Samsung is to South Korea or Toyota is to Japan. About 70% of our foreign exchange is used in importation of petroleum products. If we can begin to save even 50% of that from the first quarter of 2021, Naira will smile again and swell in value while Nigeria foreign reserves will stand erect.

9, Nigeria should apply for $20 billion GRANT from the EU, USA and UK as stimulus package. This is a far cheaper ‘’vaccine’’ to give Nigeria today out of their combined $3.5 trillion stimulus package than having to deal with 200 million refugees later on their shores. The Nigeria middle class with dual citizenship will overrun and overwhelm Europe and America if the pot boils over. It is in the self-enlightened interest of those countries to support us in this trying times. The $20billion can be disbursed directly to Nigeria businesses (MSMEs) as special grants to be administered by a purpose-built EU Vehicle for transparency purposes.

10, If number 9 request is turned down, then Nigeria should demand that all monies kept in their banks by dead Nigerian politicians should be turned over to the Nigeria government. Over 70% of Nigeria stolen wealth are kept in Europe, London and the US banks by politicians in coded accounts which makes it impossible for their families to have access after death. These monies are in billions of USD.

11, In desperate times like this, some well thought out radical solutions are required. I know currency printing is a CATCH 22 due to its negative effect on galloping inflation, but government needs to challenge its Economic Team to come up with audacious, hairy, out-of-box- fresh ideas that will bring back Nigeria from the brink.

12, Federal government to direct all banks in Nigeria to do a comprehensive audit of their customer base in the last 50 years and come up with a comprehensive list of the total amount of money belonging to their customers who are dead without next of kin and those un claimed billions of naira whose owners have refused to supply their BVN for fear of EFCC. The money can be used as part of stimulus package for MSMEs.

13, 90-DAY AMNESTY FOR PAST TREASURY LOOTERS (OCTOBER 1st, 1960- APRIL 30TH 2020): Nigerians who have money in Switzerland , Dubai, China and other countries including those tiny Islands or inside mattresses or water tanks in their respective homes in Nigeria to bring the money out as fixed deposit in Nigerian banks within the next 90 days. Zero probe. Zero explanation on the source of the money. 100% confidentiality. The money is washed ready for national development. Just deposit and go home and sin no more. I have a hunch Nigeria will raise more than $100 billion from this exercise. The owner gets 1% interest on fixed deposit, the MSMEs borrow the money at 5% interest rate. This is a win-win game between Nigeria and the ‘’owners’’ of the money.

Right now it is a lose-lose game as the owners cannot access the money for fear of EFCC and it is equally not useful for Nigeria economic development. Who gains? No one. If Nigeria can grant Amnesty to Boko-Haram despite their atrocities, why can’t we extend amnesty to those who have ‘’helped’’ Nigeria to ‘’keep’’ the money for a season of famine like this? Thereafter, anyone who is caught looting the national treasure after April 2020 can face life imprisonment or CAPITAL PUNISHMENT.

By Tim Akano…

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