The Fading Faces of Money Launderers In Nigeria
Nigeria News take a look at the fading faces of money launderers.
The number of Nigerians that move around with physical cash has drastically reduced in the last two years. Those who have more than one cars can hardly maintain one now that there is cash crunch.
And coupling with fuel price and of course its attendant scarcity, the cost of maintaining more than one car is very high.
Two days ago, an online medium disclosed that the former President of the Christian Association of Nigeria, CAN, Ayo Oritsajefor could not maintain the helicopter he acquired during the regime of President Goodluck Jonathan anymore.
Also, the businessman. Mr Jimoh Ibrahim had grounded his aircraft due to the high cost of maintenance and of course lesser financial power.
Gone were the days that the government used these businessmen and religious leaders to launder money. Things are now going smoothly and fraudulently for many of the political elites either.
The present government is tightening by the day the avenues to loot public funds. Leakages are being blocked while more money is now coming into the government purse instead of individuals’ private accounts.
To Mr Raji Shiita-Bay, a financial expert, Nigeria obviously has major challenges with free capital mobility. The free movement of capital would make monetary policy more difficult to manage so the authorities have opted to create a so-called ‘managed’ approach to capital flows.
This comes with all the attendant inefficiencies and rent-seeking behaviour we currently witness in the financial markets. The Central Bank of Nigeria has engaged in what in the past was called ‘sterilization’ of the external sector, meaning that changes in foreign reserves have minimal impact on foreign exchange rate and other macroeconomic variables such as interest rate, inflation rate and money supply.
This is rather like a man eating a hearty plate of “eba” with a larger bottle of stout and hoping to run a sub 10 seconds 100 metres dash.
The intention may seem noble (or at best novel) but the likelihood Impossible. An increase in reserves if not matched by the necessary adjustments in relative prices (including credit) will result in very messy monetary fiscal economics in the course of the year.
The debt profile simply adds another layer of uncertainty over macroeconomic management If oil prices remain around $70 per barrel for most of the year debt servicing worries will be minimal but the fiscal policy could prove inept as policy managers suffer from what behavioural economists refer to as a ‘lottery effect’.
Lottery winners typically lose all the money they win within five years of their good fortunes. In other words, the windfall gains from oil could easily turn into a wicked curse or the devil’s joke delivered from hell.
National projects are not an end in themselves but a means to an end. They should lead to productive output and employment. The sham called the national school feeding programme a clear example of alarming public sector incompetence and hubris.