The Save Nigeria Group [SNG] event today was filled to capacity at a  conference hall of the  Sheraton hotel in Lagos to enlighten the public of the improvements brought about by the January 2012 nationwide "Occupy Nigeria"  protest against President Goodluck Jonathan's purported withdrawal of subsidy on gasoline.
 The conference also discussed the shortcomings of the demonstration and mapping out of progressive strategies. Participants surprisingly endured six hours, watching as radical economist, Henry Boyo floored officials of the Central Bank of Nigeria in a heated debate. They capitulated, agreeing to Mr. Boyo’s points on economics, but conversely, the CBN was exposed as having failed to apply pertinent principles in its operations.

Convener of the Save Nigeria Group, Pastor Tunde Bakare commended Nigerians for turning out in large numbers during the Occupy Nigeria protests while charging them to be alert for further moves to reclaim Nigeria from its captors.
Display of photos at the ground of the Occupy Nigeria protest relived memories of the largest gathering of Nigerians on a single national issue.
FULL REPORT BY PREMIUM TIMES:
Economist clashes with CBN officials at Save Nigeria Group’s roundtable
Ben Ezeamalu
Published: January 14,2013
Tunde-bakare is leader of SNG
 Mr. Boyo says the Central Bank of Nigeria, CBN, is moving in the wrong direction.
A clash of wits between renowned Nigerian Economist, Henry Boyo, and representatives of the Central Bank of Nigeria, CBN, dominated proceedings at Monday’s roundtable to mark one year of Occupy Nigeria.
The event, organized in Lagos by the Save Nigeria Group, SNG, was themed ‘Nigeria Fiscal and Monetary Crisis: The Way Out.’
A one minute silence was observed for citizens who lost their lives during last year’s protest against fuel subsidy removal.
In his presentation, Mr. Boyo, a perennial critic of the CBN, accused the bank of operating a “sustained” faulty monetary framework that is ruining Nigeria’s economy.
“I’ve never seen a country where the Central Bank sells Dollars to Bureau de Change,” said Mr. Boyo.
“We even pride ourselves with giving agricultural loans at the rate of seven per cent, whereas in serious economies, it is as low as zero per cent,” he added.
CBN killing the economy
As he did at a previous seminar organized by the SNG, Mr. Boyo’s presentation comprised of actions responsible for the failure of Nigeria’s economy, followed by factors for the transformation of the economy.
The economist cited high interest rates, continuously depreciating Naira, high rate of inflation, and high rate of smuggling as some of the factors forcing the economy to its knees.
“You can’t grow as a country when your Central Bank is borrowing at 12 per cent. The CBN borrowing money they don’t need,” said Mr. Boyo.
“How can you be using N2 trillion, over 40 per cent of budget, to pay subsidy? Inflation at over 12 per cent, there’s no way the economy can grow,” he added.
Among the ‘sins’ of the apex bank, according to Mr. Boyo, is its conversion of foreign exchange earnings, in Dollars, to Naira, before sharing among the three arms of government; and then turn around to say they’d “mop up” excess money in the system.
“How will anyone in their right senses say that they are mopping up money, and they tell you that the money will be warehoused, and they are paying 12 per cent,” Mr. Boyo said.
Mr. Boyo advocated the issuance of Dollar certificates to the arms of government as a veritable alternative.
“We are not managing excess liquidity properly; it is the creation of the Central Bank.
“They (the CBN) will tell you that it is the result of expansionary fiscal policy. They will confuse you. It doesn’t exist.
“It is not government that will grow the economy, it is the real sector. And they cannot do it with the CBN current policy framework.
“High interest rates destroy production because it increases production costs. So don’t be surprised when your warehouses are converted to churches and mosques,” Mr. Boyo added.
Mr. Boyo’s 30 minute presentation was as dramatic as it was damning.
‘Telling lies’
And when it was time for a CBN representative to make his presentation, he spent all his time issuing a rebuttal to Mr. Boyo’s “misconceptions, misinformation, and miseducation” of the public.
Charles Mordi, Director of Research at the CBN, also accused Mr. Boyo of being “privileged” to know what the gathering was all about and, therefore, prepared his presentation.
“Unfortunately, the briefing we got from Abuja was quite different from what we are seeing,” Mr. Mordi said, alluding that the first presentation caught them unawares.
While agreeing that a double digit interest rate regime is harmful for the economy, Mr. Mordi stated that the CBN had embarked on an aggressive drive to salvage the situation.
Mr. Mordi said that many factors come into play when formulating economic policies, adding that “the economic environment has to be right.”
Mr. Mordi faulted Mr. Boyo’s claims that interest rates need to be driven down to low single digits before the economy will thrive.
“Has he checked Brazil? Brazil is the fifth largest economy in the world. Has he bothered to look at Ghana? I challenge him to go to the Ghanaian website and see the interest rate,” said Mr. Mordi.
“When you are making comparisons, it is always good to get your facts right. There is no developing country, save a few, that you have the interest rate regime that he is talking about,” he added.
The CBN director said that only developed economies have a 2 – 3 per cent interest rate that Mr. Boyo is talking about.
“To start advocating for 2 – 3 per cent interest in Nigeria is a wild dream. You’ll do so many that will even retard the growth that you want to achieve,” Mr. Mordi said.
Mr. Mordi described Mr. Boyo’s target of achieving a low interest rate, low inflation rate, and a stronger Naira as the “impossible trinity.”
“You cannot have the three moving in the same direction at the same time. It is impossible.”
Another CBN director, Emmanuel Ukeje, said that the major constraint facing the production sector was the cost of infrastructure, and not the banks’ high interest rates.
According to Mr. Ukeje, although a recent study stated that the sub region could tolerate a 12 – 14 percent inflation rate; the government is working towards pushing it down at six per cent.
“If there is anything that will destroy an economy, it’s inflation. That’s why we do everything within our power to ensure price stability,” said Mr. Ukeje, CBN’s Director of Financial Markets.
“As a matter of fact, if there is any institution that has always been in collision with the government, it’s the CBN.
“And as you know, our autonomy is being threatened. And here we are being crucified,” Mr. Ukeje added.
In his welcome address, Tunde Bakare, convener of the SNG, said that although last year’s protests did not bring change of the scale of Tunisia or Egypt; “quite a lot” was gained.
“The government does not have the confidence to raise the pump price (of petrol) because the ghosts of Occupy Nigeria still haunt them,” Mr. Bakare said.