• Main News
  • About Us
  • Contact
Premium Times Opinion
Tuesday, August 9, 2022
  • Home
  • Democracy and Governance
    • Bámidélé Upfront
    • Jibrin Ibrahim
    • Okey Ndibe
  • Economy
    • Ifeanyi Uddin
  • Issues of the Day
    • Adeolu Ademoyo
    • Aribisala on Tuesday
    • Dele Agekameh
    • Pius Adesanmi
  • Politics
    • Ebeneezer Obadare
    • Femi Fani-Kayode
    • Garba Shehu
    • Hannatu Musawa
    • Zainab Suleiman Okino
  • Guest Columns
  • Faith
    • Article of Faith
    • Sunday Ogidigbo
    • Friday Sermon
    • Elevated Sight
  • Home
  • Democracy and Governance
    • Bámidélé Upfront
    • Jibrin Ibrahim
    • Okey Ndibe
  • Economy
    • Ifeanyi Uddin
  • Issues of the Day
    • Adeolu Ademoyo
    • Aribisala on Tuesday
    • Dele Agekameh
    • Pius Adesanmi
  • Politics
    • Ebeneezer Obadare
    • Femi Fani-Kayode
    • Garba Shehu
    • Hannatu Musawa
    • Zainab Suleiman Okino
  • Guest Columns
  • Faith
    • Article of Faith
    • Sunday Ogidigbo
    • Friday Sermon
    • Elevated Sight
No Result
View All Result
Premium Times Opinion
Home Opinion

50 Naira Wise, Billion Naira Foolish!, By Reno Omokri

by Premium Times
February 1, 2016
Reading Time: 3 mins read
9

Central Bank of Nigeria
The tail end of 2015 already gave discerning Nigerians a sign that the coming year would be challenging and many citizens expected the introduction of policies that would help ameliorate the difficulties of these austere times and the President Muhammadu Buhari led administration did not disappoint them. Commendably, the government reduced the price of Premium Motor Spirit by 50 kobo.

The benefits of this sort of humane gesture from the Federal Government however seems to have been soured by the announcement by the Central Bank of Nigeria that it would be implementing a stamp duty policy.

The reason the Central Bank of Nigeria introduced the cashless policy now in place was because over 50 percent of the Nigerian population is unbanked.

The policy was meant to attract the unbanked population to bring their money into the banking sector and thereby increase the capital available to banks to grow the economy and also reduce corruption and crime by having an electronic trail of all financial transactions.

But with the implementation of the ₦50 stamp duty charge, whereby ₦50 is assessed as tax out of a deposit of ₦1000, the Central Bank of Nigeria will end up driving people away from the formal banking sector which will negate the gains of the cashless policy.

If an average Nigerian earning a minimum wage considers that a ₦1000 deposit into his account by a friend will leave him with only ₦950, it only makes sense that he will have a higher incentive to leave the banking sector and keep his money at home.

This action will have three consequences. The first is that the amount of money available in the banking sector will reduce as people pull out funds from Nigerian banks to keep at home or possibly to open accounts in neighbouring nations.

The second consequence is that incidences of crime and corruption will increase as people keep more cash at home where it cannot be traced, rather than in banks where it can be traced.

The final consequence is that our real Gross Domestic Product (GDP) will shrink because money will flow from the formal sector to the informal sector, thus making it impossible to accurately measure our real GDP.

In my opinion, the solution to this will be to adjust the stamp duty policy to make it applicable to only people who maintain a particular balance so that it does not affect low and middle income earners.

A person who maintains a balance of more than a million Naira will be better able to afford such a tax and will have less incentive to leave the banking sector than a low income earner with a few thousands of Naira.

I know that the economy is facing some challenges and there is the need to diversify our revenue base, however, in trying to do that, we should not be ₦50 smart and a billion Naira foolish!

These are challenging times for Nigeria’s economy and such times need a steady hand at the helm; one that will not panic.

Thankfully, President Muhammadu Buhari has shown that he has resolve. It is now left for those around him to bring to his attention the unintended consequences that will (not may) occur if this policy is continued.

I have read people on both sides of the divide argue this matter on social media. Some argue that the law allowing this policy preceded the Buhari administration and as such no one should blame him.

That kind of thinking really saps one’s energy. Must everything be reduced to who to blame?

When your house is on fire, your focus should not be on who to blame but on who can put out the fire. There is plenty of time for blame games later.

If the house is burnt down, of what profit will it be to argue about whether it was painted white or black?

Nigeria does not need panic measures, rather she needs tonic measures! A tonic is a supplement given to someone who has been experiencing weakness in an area in which he or she had once experienced strength for the purpose of rejuvenating that person.

To the opposition I say that I supported ex-President Goodluck Ebele Jonathan during the 2011 elections and I am convinced that he was and is still the best choice. But Nigerians preferred President Muhammadu Buhari and he is now my president; I accept his leadership and I will do everything I can to help him succeed. We must all wish him well.

We should not speak negatively about President Buhari or of Nigeria under his leadership. Can we speak negatively about our nation and at the same time pray positively about ourselves? Can we prosper in our home after cursing it with your mouth?

Reno Omokri is host of Transformation With Reno Omokri, the founder of the Mind of Christ Christian Center in California and author of Shunpiking: No Shortcuts to God and Why Jesus Wept.

Share this:

  • Tweet
  • Email
  • Print
  • More
  • Pocket
  • Share on Tumblr

Related

Previous Post

Rising Misery in the Land and Rising Generosity in Society, By Jibrin Ibrahim

Next Post

How Technology and Innovation Torpedoed Nigeria’s Finances, By ‘Tope Fasua

Related Posts

Zamfara Gold As Commonwealth, By Zailani Bappa
Opinion

Sheikh Gumi, Governor Matawalle and the Sands of Time, By Zailani Bappa

February 2, 2021
June 12 As Democracy Day Needs To Be Reconsidered, By Bashir Tofa
Opinion

The Need To Act Now To Stop the Ethnic Conflagration!, By Bashir Othman Tofa

February 2, 2021
Kofi Annan: In Service of the World, By Ejeviome Eloho Otobo & Oseloka H. Obaze
Opinion

Biden’s Likely Policy Orientation Toward Africa, By Ejeviome E. Otobo and Oseloka H. Obaze

February 2, 2021
Agenda for ‘Born Again’ JAMB and TETFUND, By Tunde Musibau Akanni
Opinion

Oyeweso, A Celebrated Historian, Ascends the Sixth Floor, By Tunde Akanni

February 2, 2021
Before Nigeria Burns, By Akin Fadeyi
Opinion

Is President Buhari Presiding Over the Last United Nigeria?, By Akin Fadeyi

February 2, 2021
On A Soyinka Prize In ‘Illiteracy’, By Biko Agozino
Opinion

Obasanjo: Only Those Who Did Not Do Well Went Into the Military, By Biko Agozino

February 1, 2021
Next Post
Seriously, Which Carpenters “Constructed” Nigeria’s 2016 Budget?, By ‘Tope Fasua

How Technology and Innovation Torpedoed Nigeria's Finances, By 'Tope Fasua

We Must Change the Way We Live, By Odia Ofeimun

Biodun Jeyifo: Denizen of the Fourth Stage, By Odia Ofeimun

Editorial

  • EDITORIAL: The Urgency of Tackling Nigeria’s Second Wave of COVID-19

    EDITORIAL: The Urgency of Tackling Nigeria’s Second Wave of COVID-19

  • EDITORIAL: Unearthing the Cogent Lessons In the NESG-CBN Economic Policy Imbroglio

    EDITORIAL: Unearthing the Cogent Lessons In the NESG-CBN Economic Policy Imbroglio

  • EDITORIAL: COVID-19: Calling On Nigeria’s Billionaires and Religious Leaders To Step Up

    EDITORIAL: COVID-19: Calling On Nigeria’s Billionaires and Religious Leaders To Step Up

  • EDITORIAL: Bichi Must Go; Buhari Must Halt Slide Into Despotism

    EDITORIAL: Bichi Must Go; Buhari Must Halt Slide Into Despotism

  • EDITORIAL: The Flaws In Governor Emefiele’s Five-Year Plan For Central Bank of Nigeria

    EDITORIAL: The Flaws In Governor Emefiele’s Five-Year Plan For Central Bank of Nigeria

Subscribe to our Opinion articles via email

Enter your email address to get notifications of new opinion articles as they are published.

Join 526,543 other subscribers

Most Popular

  • The Bad Consequences and Dangers of Adultery and Fornication (Zina) In Islam, By Murtadha Gusau
    The Bad Consequences and Dangers of Adultery and Fornication (Zina) In Islam, By Murtadha Gusau
  • The Qualities of a Good Leader In Islam, By Murtadha Gusau
    The Qualities of a Good Leader In Islam, By Murtadha Gusau
  • Islam and the Conditions For Marrying More Than One Wife, By Murtadha Gusau
    Islam and the Conditions For Marrying More Than One Wife, By Murtadha Gusau
  • Nigeria's Need for a Credible Database for National Development, By Bámidélé Adémólá-Olátéjú
    Nigeria's Need for a Credible Database for National Development, By Bámidélé Adémólá-Olátéjú
  • Slaughtering Animal for the New Born Baby (Al-Aqiqah) In Islam, By Murtadha Gusau
    Slaughtering Animal for the New Born Baby (Al-Aqiqah) In Islam, By Murtadha Gusau
  • The Importance Of Keeping Secrets In Islam, By Murtadha Gusau
    The Importance Of Keeping Secrets In Islam, By Murtadha Gusau
  • The Women Prohibited For Men To Marry In Islam, By Murtadha Gusau
    The Women Prohibited For Men To Marry In Islam, By Murtadha Gusau

Like us on Facebook

Like us on Facebook

Podcasts

Advertisement

Advertisement

Advertisement

  • Main News
  • About Us
  • Contact

© 2022 JNews - Premium WordPress news & magazine theme by Jegtheme.

No Result
View All Result
  • Home
  • Democracy and Governance
    • Bámidélé Upfront
    • Jibrin Ibrahim
    • Okey Ndibe
  • Economy
    • Ifeanyi Uddin
  • Issues of the Day
    • Adeolu Ademoyo
    • Aribisala on Tuesday
    • Dele Agekameh
    • Pius Adesanmi
  • Politics
    • Ebeneezer Obadare
    • Femi Fani-Kayode
    • Garba Shehu
    • Hannatu Musawa
    • Zainab Suleiman Okino
  • Guest Columns
  • Faith
    • Article of Faith
    • Sunday Ogidigbo
    • Friday Sermon
    • Elevated Sight

© 2022 JNews - Premium WordPress news & magazine theme by Jegtheme.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
 

Loading Comments...