By Adeola Aderounmu
Olu Falae took Yar Adua to the washerman describing him as unfit and unprepared to rule Nigeria. Of course we all know that. I told a friend recently that something remarkable will happen in Nigeria soon. The fact is that Yar Adua is buying time and playing smart. His game will be up soon. But what will happen after Yar Adua is what I cannot fathom. Nigeria is too complicated to predict accurately. It is sad because in the end it is the ordinary people like you and I that always suffer.
Anyway moving on, Olu Falae who was the Finance Minsiter when Babangida milked Nigeria to dryness by stealing more than 12 billion dollars of oil money is talking again. He is now 70 and wisdom may finally have caught up with him. Here is one of those men who presided over Nigeria in a very evil way. I have no respect for any man who participated in truncating my dreams and aspirations.
To this day I continue to see almost every politician in Nigeria as evil or devilish and every ex-military ruler as satanic. They cannot be normal people because of the effects of their conspiracy theories, looting and negligence of duty/ obligation. It is not normal to steal more than 12 billion dollars and it is not normal to be a finance Minister when such a evil is perpetrated. A normal Minister will resign to save his good name and to protect the future of the unborn. Nigerian politicians are senseless with their looting and selfish mentalities and Yar Adua is just one of them-take it or leave it! Truth will always be bitter!
So what is Purchasing Power Parity (PPP)? It is Falae’s formula to bring the value of the Naira to 1 dollar= 50 Naira.
Here is the excerpt from the Nigerian Guardian Newspaper of October 4 2008.
He described the prevailing exchange rate in the country and urged the government to consider Purchasing Power Parity (PPP) option.
According to him: “We talked about it at the time and I said in 1990 that the naira was grossly undervalued and I gave an example. I said ‘Look, let’s take the PPP, what we called Purchasing Power Parity. What it means in simple language is that a loaf of bread is a loaf of bread and a bottle of Coke is a bottle of Coke, whether it is in Lagos or New York. In economics, it is expected that a bottle of Coke would give the same satisfaction in Lagos as it would in New York. In essence, what you pay for a good is the satisfaction you get from it. So, the price is an equivalent of the satisfaction you get out of that good or service anywhere in the world.
“Now, a bottle of Coke today in Lagos is N50, while it costs probably one dollar in New York. If Coke were the only commodity used and traded, then one bottle of Coke is one bottle of Coke and N50 should be the same as one dollar. That should be the exchange rate. Because the purchasing power and the equality of purchasing power over the added value at the same point in time showed that N50 should be the same as one dollar. If you did it for a basket of goods, not just a loaf of bread, you will find out that there is no reason the dollar should be more than N40 or N50.”
That is Falae’s approach. I am not an economist so I doubt if I have any comment on that. But remember that Babangida with his empty skull said that Nigeria’s economic problems couldn’t be solved after he and Falae applied all the methods at their disposals.
What the fool didn’t say was that he was institutionalising corruption and kickbacks. He didn’t tell Nigerians that he was saving the gulf oil wind-fall in a private account for himself and his family. He didn’t say that he was going to use this money to win friends and enemies in the dirty politics arena in Nigeria.
AND the useless government in Nigeria is still bragging about fighting corruption. How can you fight corruption when a person like Babangida is not arrested and tried for looting and for destroying democracy in Nigeria. Sometimes when I read about the EFCC, I just laugh. There first job is to take IBB in and investigate the money from the gulf war. As far as I am concern, until you touch people who think they are untochables, you cannot fight corruption anywhere in the world. Every other thing that you do is artificial and make-believe.
If you set a good example with well known thieves and looters, then you can be taken seriously and other politicians planning to loot will think twice. What we have today is paying purely lip service to fight corruption while massive looting and enrichment continues in the public service and political establishment. This is why more than 90m Nigerians remain very poor and insecure. CORRUPTION AND NEGLIGENCE OF PUBLIC SERVICE DUTIES.
Purchasing power indeed! Take corruption away and everything will fall in place….