AWARDS! FOR SALE OR MERIT? 27032006

There is a natural innate ego that craves for attention and recognition in everyone of us and it is generally more satisfying and soul-enriching when such recognition comes unsolicited from social, professional peers and even family or friends and associates. Awards come in different forms but the degree of popular credibility associated with each award would depend on the calibre of members of the adjudicating committee and the extent of public space covered by the award. Thus, while the annual Nobel Awards command universal respect, a local school award for say, the best student in particular subjects or discipline would command a much more limited recognition. At both levels, however, it would be expected that there are clearly defined parameters for evaluating the candidates nominated for each award; the clearer the award parameters, the more transparent will be the process, and the more respectable  will be the honour attached to the award!

In this vein, we may appreciate why our government’s annual awards of national honours currently suffer a credibility crisis; apart from the fact that nominees are selected on the criteria of federal character, there is no other clearly defined parameter for selection, and not surprisingly, Nigerians have wondered at the choice of several awardees and questioned their suitability for national honours; treasury looters, 419ers, sycophants and all manner of suspect characters have all been adorned with some of the highest honours in the land. (Check the award of CFR to ex I.G. of Police, Tafa Balogun) at a time he looted the Police treasury and thereby compromised the security of over 130 million other Nigerians!

The impoverishment of our national landscape in the last 30 years or so by the enthronement of a philosophy of brute force and might expressed in several criminal military coups as the engine of political growth ensured that mediocrity prevailed and merit and intellect took the back seat in our national affairs.  This culture quickly attracted promoters in both the local  and international Award business and the new Nigerian political and business elite which provided a large reservoir of successful people of doubtful integrity became ready ‘buyers’ of one form of award or the other.  Award promotions have become a very lucrative goldmine for those who recognize the craving for honour and recognition by Nigeria’s nouveau riche and even professional bodies and otherwise respectable institutions have joined the scam.  There is for example, a leadership award promoted by some smart Alecs in the land of Osagyefo but targeted exclusively at Nigeria’s nouveau riche, most of whom have more money than common sense!  It is no lie that the promoters have so far not attracted the patronage of either the private or public sector in Ghana, the base of the award promoters, but it is probably easier to count those in Nigeria’s political, military or business landscape who have not been nominated for the empty but expensive honour of this brand of award.  

On Saturday the 18th of March, the crème de la crème of Nigeria’s business class, particularly the moguls of the banking industry got together to celebrate the banker of the year award to our own CBN Governor by an international bankers magazine based in London.  The bash must have been in grand style as it reportedly cost the 24 newly consolidated banks, who sponsored it a neat package of N48m (about $400,000 for a three hour show for about 300 guests)!  Whao!  Who said Nigeria was a poor country?   Certainly not the bankers, who have derived upto 80% of their profits from treasury bills and forex transactions!  Sections of Nigerian society, including the shareholders association have disapproved of such profligacy while others have questioned the ethic of the bankers’ banquet vis-à-vis the CBN’s regulatory and supervisory role of the banks!  Some have likened the show to a group of students organizing a private party for their invigilator for the forthcoming exams!  Other Nigerians have also argued that there is nothing wrong in a celebration of excellence and that Nigerians should be proud that our own son has been selected for honour by an ‘independent’ and professional arbiter for world accolade!  Other curious analysts have questioned the touted achievements of our CBN Governor; such analysts argue that an award for global excellence in any endeavour or discipline should be backed by concrete achievements which have added value to the life of a country’s citizens; even the achievement of banking consolidation has been denigrated by Soludo himself, who belatedly acknowledges that the capitalized value of all the 24 banks is below the capital base of the largest commercial bank in South Africa – our African running mate - a la. Barkin Zuwo (God rest his soul).

So, other than the qualified success of forcing a field of about 90 banks to a more manageable 24, analysts argue that the parameters with which Central Bank Governors all over the world are judged relate to inflation, interest rates, exchange rate management, promotion of employment and sustained economic stability.  Now, where does Nigeria stand regarding these critical parameters?  Well, inflation, according to Prof Soludo himself, is still above 20% compared with 2-3% maximum in focused economies; CBN’s control rate (MRR) remains adversely high at 14.5% compared with rates of 0-3%, while commercial lending rate is still above 20% as against 6-7% in serious economies while the naira refuses to appreciate at a rate commensurate with our reserves!  Meanwhile, our government’s monetary framework promotes a climate of too much cash in the system when the nation’s dollar revenue is unilaterally converted by the CBN and paid into the bank accounts of the three tiers of government every month, a system that supports the payment of double digit interest rates by government for its borrowing (mopping up and sterilizing the huge naira balances in the banks) through the risk-free instrument of treasury bills, while the real sector is starved of funds!  

Indeed, curious observers conclude that if all these negative indices were abiding features in the UK economy, the base of the Global Banker Award promoter, the Governor of the Bank of England (the UK’s CBN) would not stay a day longer in office, let alone win an award for banking excellence!  But then, cynics have noted that Soludo’s award by the UK outfit was just a way of expressing gratitude for the benefits the UK in particular and the European Union have derived from Soludo’s brief tenure as CBN Governor; remember the payment of $12.5bn to the Paris Club for the write off of the remnants from a debt of $10bn, which still ballooned to $32bn even after payment of $17bn.  

Furthermore, the cynics observe that our warm embrace of international monetary institutions ensures that both our Finance Ministry and our CBN have now become the ‘bedrooms’ of IMF and European neocolonialist hounds, whose interests are served by our predicament of a monetary framework that ensures that our people have become poorer with increasing foreign exchange earnings!  They know that the main cause of our poverty is the conversion of the nation’s dollar earnings into naira before sharing, but it is not in their interest to tell the fools, who they have as partners!

Someone please tell me these cynics are wrong!