Sanctions Against Niger, Mali, Burkina Faso, Guinea Have Failed To Achieve The Purpose, Tinubu Confesses

“In my mind and heart, that which is hurtful yet ineffective serves no good purpose and should be abandoned.
“…the sanctions that we contemplated might help lead our brothers to the negotiating table have become a harsh stumbling block.”
These were the verdict of Nigeria’s President Bola Tinubu, who doubles as Chairman of the Authority of Heads of State and Government of the Economic Community of West African States (ECOWAS), when he spoke today, February 24, at the Extra-ordinary Summit of the body in Abuja, Nigeria’s nation’s federal capital.
President Tinubu said that everything which the leadership of ECOWAS did was in hopes of persuading the coup leaders in those countries that there existed a better path, “a path that would lead to genuine improvement of their people’s welfare through democratic good governance.
“And this was a path each of our nations had solemnly agreed with one another pursuant to formal regional treaty and protocol.”
He recalled that ECOWAS was established for the unassailable objective of improving the lives of the people of this region through fraternal cooperation among all member states.
He added that the body was cemented on the strong foundation and apt conviction that, united as one, members can be the true masters of their destiny.
The President stressed that ECOWAS took the steps it did based on the regional ideals of security, social stability; democratic governance, political freedom, broad-based prosperity, and sustainable economic development through fair opportunity for each and every one in West Africa.
He insisted that neither hatred nor hidden motive influenced the steps taken and that there was never any intention to douse or undermine the legitimate political aspirations of any member state or to advance the interests of any outside party.
President Tinubu drew attention of the members to the approach of the holy month of Ramadan and of Lent, saying: “whether you pray in the mosque or in the church, this represents a time for compassion, hope, and harmony. It is a time that we must not only seek God but also a closer relationship with brother and neighbour.
“In the Spirit of the holy month and of the Lenten period, and with hearts bestirred by goodwill towards all our people, let us extend a hand as brothers and friends to those in Niger, Mali, Burkina Faso, and Guinea.
“What I suggest in real and practical terms is that we, my colleagues and fellow heads of state in ECOWAS, indefinitely suspend economic sanctions against Niger, Mali, Guinea and Burkina Faso and against the leadership of the military authorities in those nations.”
President Tinubu asked ECOWAS to facilitate the unfettered flow of foodstuffs, medicines and other humanitarian items to the people of these nations, especially to the most vulnerable, adding that for Nigeria, this will also mean the prompt resumption of export of electric power to Niger.
“In this vein, suspension of sanctions is an important but initial step. What we seek is more than the breaking of the diplomatic logjam. We must use this very moment when things seem tense and progress unavailing, to forge greater cooperation within our community.
“We not only reach out to our brothers. Today, we say unto them — let us begin to work more earnestly together for the economic development of our people and towards confronting those modern challenges that respect no borders or boundaries. Challenges ranging from climate change to violent extremism to illegal pilfering of our precious natural resources require that we join together in progress or we fail separately.
“As leaders of ECOWAS, we have accepted the honour and duty to draft the history of the region and its people during our tenure in office. We have also accepted the honour and duty to reach out to our brothers, letting them know this regional home belongs to us all. I shall do my utmost in this regard. I humbly beseech that you do the same.
“For these reasons, we must suspend sanctions and return to brotherly dialogue. I call on the leadership in Burkina Faso, Guinea, Mali, and Niger to embrace the hand extended.”








FG Must Act Fast Before Binance Traders Push N3,000 To $1, By Chukwudi Iwuchukwu
This time last year the dollar rate was stable at 730 to $1. It was the same at Binance P2P.
USDT was stable and pegged at 730 to $1.
So what changed between last year and this year that caused a 60% Naira depreciation?
There are two answers.
1. PresidentTinubu’s miscalculation.
2. Greedy Speculators
Lets explore these two factors.
Last June, this present government made a brilliant and audacious move. They were bold enough to unify the official FX rate and the parallel market by floating the naira. A very bold thing to do, and also the right thing to do too, but they failed with this attempt because no country in the world floats its currency without a backup Plan for volatility. Thus when the speculators who are in business to make money saw the flaw in what the Government’s Plan, they leveraged on that to strike. That is why, from June till now the Naira has been on a free fall with no fundamental or excessive demand to back it’s depreciation.
*EXPLANATION*
The same people who bought the dollar last year are the ones who are still buying it this year.
This time last year, NNPC did not remit dollars to CBN, and
Still not remitting to date.
Nigeria was not invaded by aliens demanding dollars to justify this depreciation of our currency.
The CBN’s situation hasn’t worsened since December, rather it has improved.
The dollar supply hasn’t worsened since December, rather it has improved.
Capital importation hasn’t worsened since December, rather it has improved.
In just two weeks, Nigeria attracted over $1.8 billion in inflow from capital importation. Bearing in mind that last year, we had supply issues as banks were not selling dollars, which you could only get from the black market, but still, the naira was a stable.
This Researcher urgently needed $10,000 last year.
He bought from his dollar plug, Adamu, who sold to him at 730 as Zenith Bank did not have a dollar to sell.
The same Zenith bank does not have dollar to sell as of today but dollar has magically gone haywire since that time.
Which leads to the second leg of this Piece.
*Binance speculators*
Prior to 2020, the P2P market on Binance was not mainstream.
Every Tom, D*ck, and Harry could buy USDT at Binance at the official rate using their naira card.
The official rate was the country’s exchange rate, which was what Binance was selling its USDT at at the time.
Then Emefiele struck in February 2020 by banning Crypto.
The P2P market went underground and became mainstream, and the channel where you go to buy your USDT.
The P2P market was largely insignificant prior to that attention because it was a small market in the forex ecosystem until last June.
In 2020, the country witnessed the largest conversion of young Nigerians into Crypto because we had a bull run that year.
Many people were demanding USDT at a level we have not seen to date.
In all these demands in 2020, the naira rate was stable @ 450 to $1.
It is quite strange and ironical that when there is no demand for USDT, the dollar rate at Binance is going up every hour for no reason and no fundamental reason to back this increment.
South Africa has a bigger P2P market on Binance than Nigeria.
South Africa has a daily volume of $30–50 million, but the South African currency, the rand, is stable and does not depreciate the way the Naira has been doing since last year.
Nigeria has a daily turnover of just $1 million on Binance P2P.
It was the same volume last year.
Instead of stability since there is no excessive demand for USDT, what we have seen is price manipulation by large traders in that segment who trade large amounts of dollars.
Yesterday, on Binance all day, witnessed a mind-blowing discovery.
These guys on P2P wake up to start manipulating the naira price with no backing demand.
The price went from 1700 to 1850 in less than 3 hours.
A thorough check, showed no excessive demand for USDT from the buyers to warrant this depreciation. Rather, what was noticed were 4-5 traders on Binance playing a game among themselves, moving funds around, and then deliberately driving up price.
Just like that.
As they were doing their price manipulation on Binance, the unofficial market, which is the BDC sellers on the street, were monitoring what they were doing to fix their own rate. When they were done with this manipulation, they withdraw their gain for the day and went God knows where to enjoy their profit for the day.
The USDT/Naira pair on Binance is the official black market rate where all dealers pick their pricing model from.
Both the media, FX speculators, influencers, and traders resort to Binance rates.
This Researcher bought $5,000 from his plug Adamu. Before he gave the price, he checked Binance for the rate and then gave him his best price.
This speculative practice is not sustainable.
It is hurting the larger economy and the greater population of our citizens who are hurting from the madness going on in Binance.
It is more hurtful because the true value of the naira is not 1,900, it isn’t even 1,500. The fair value is between 650 and 800 to $1.
*EXPLANATION*
The fair value of a country’s currency is calculated by two models.
1.The total export of the previous year.
2. The total amount of money in circulation
Nigeria exported goods worth $70 billion last year.
The total money in circulation was 3.2 trillion naira as of December last year.
When you juxtapose these two, it gives you a sense of where our currency should be, which is between 650-800 but today, we are buying the dollar at 1,900 to $1 because of the slow market realisation of this government.
*The way forward*
It is not too late for this government to admit that their floating gamble has failed and then wake up to take charge before things get worse than this.
*PROCEDURE*
1) Admit they failed in floating the naira without a backup in case of volatility.
2) Introduce a managed float by pegging the exchange rate of the currency to a price, within the range of 650–800, and then do all they can to defend it. This will run the speculators out of town.
3) Right now there’s no coordination between Wale Edun, the Minister of Finance responsible for the fiscal side, and Cardso, the CBN Governor, driving the monetary policies.
This needs to change quickly.
These speculators on Binance are making a fortune speculating on our currency, Speculation of anything is actually a lucrative business.
George Soros once made $1 billion in a day, speculating, betting against the British pounds in 1992.
Thus speculating on Binance is giving these guys insane money that trading Crypto won’t give them, and this is why they won’t stop anytime soon. They won’t stop till they drive the price of the dollar to 3,000 to $1.
Will the Government wait to be crippled by them?
We expect to see Wale Edun and Cardoso to halt these mad people before they (the Speculators in Binance), who are in minority, push our economy to Lebanon and Venezuela because of their Greed.
This is where they are heading. Are we going to allow Binance speculations destroy us?
The ball is in the court of the Government to act quickly.