Olusegun Aganga, Goldman Sachs outfit, and the Nigerian economy (I)b

By Iroabuchi Onwuka

It is expected that the Nigerian finance Minister, Aganga, is perhaps meant to serve as the primary relief pitch for CBN chairman Mallam Sanusi Lamido. The CBN chairman’s reactionary tendency towards his fellow bankers proved detrimental to the International rating of Nigerian Banks. It may not have seem clear to the ‘unsuspecting’ Nigerians that but Sanusi’s personalized view of Nigerian banking society and funds of funds management was far too radical for a Central Bank Chairman. The role of the Central Bank Chairman in price moderation is Interventional, perhaps adjudicative but at no point is it Executive. Price is a quantity of ‘economic statistics snapshot’ and as such Price is normal market condition is expected to determine its own range in any market. It is however this price in terms on Nigerian market and in terms of Naira that now serve as our primary concern in accepting Aganga under the canopy of Sanusi. Sanusi’s quick fix actions inadvertently injured the international reputation of Nigerian financial products, a case in command that many people will still argue. But Sanusi’s policies without the international ‘anchor’ of IMF were only destined to hurt, a fact which Sanusi himself may have noted given his final tilt towards Universal Banking. He was trying to amend the Nigerian International reputation through Universal Banking. This idea of Universal Banking open us to the reasons behind Aganga nomination for he will be redeeming grace of such ineluctable error. Aganga serves as a formal rejoinder of Nigerian Banking society to the rest of world.



What is however not formal is the financial war which has broken up between Nigeria and the rest of the world. In short view, Aganga’s appointment as the Chairman of the Board of World Bank - days after his conformation - is only a form of death sentence of Nigerian domestic market and probably a trap. This Aganga’s decoration therefore conceals everything and nothing, for we are now left to entertain the question of Nigerian preparedness for such financial endorsement and trade fair. My candid view and answer is that Nigeria is not ready for this big time engagement, for the country’s domestic economy is seriously weak and uncompetitive. Nigeria is sucked into an al warfare from which the certainty is further collapse due to very weak Internal market dynamics. But this war is not like any war known to us, and the end of the war is close to what we find in today’s Greece. The war between Nigeria and the rest of Super Currency world its clearly monetary, clearly statistical, clearly digital warfare of market statistic. Nigeria will eventually be needing such thing as implied debt and rate, forced through the international rate pendulum of ‘super currency’, a rate that swings in one direction and by its energy, an International rate that wreck the domestic rate. This is where the issue lies since Nigerian economy and its Naira has become absorbed into the equation of International financial body. By entering into the same ring as these BIG others, the economic value of Nigeria no longer apply. Then, will apply the inherit problem of debt due to decline in debt management, a condition ultimately expected to be redeemed by a coalition of good fellows; Investment Banks.