Spotlights
How naira can return to below N1,000 per dollar mark – BDCs President
The National President of the Association of Bureaux De Change of Nigeria, ABCON, Dr Aminu Gwadabe, in an interview with DAILY POST, speaks on the reason for recent Naira depreciation and solutions to attaining foreign exchange stability in Nigeria. Excerpts:
In the past two weeks, Naira depreciation resumed, almost undoing the currency gains at the foreign exchange market in the last two months. How would you assess the situation? What is fundamentally wrong?
The Naira’s recent negative downward trend is worrisome and has come with many surprises.
Our interrogations revealed the following perspectives.
First, we discovered after the Naira achieved considerable strength to an all-high at below N1000/$, precisely N969/$ around April 8th 2024, some rational behaviour, not fundamental, erupted where people were buying dollars from the open market and selling at the interbank window and thus, there was significant demand pressure on the Naira and it turned its positive strides to weakness.
In the same vein, the activities of the online platforms come with serious debacles, where traders put pressure on the open market and dump the inline platforms where the Naira is badly traded.
As long as the platforms remain profitable, the Naira must continue depreciating.
Thirdly, the continuous attacks of speculators to reap their lost gains on naira depreciation is another issue. They have continued to speculate and hold their position.
Last week, the Central Bank of Nigeria released another intervention of $10,000 to legible BDCs at 1,021 per Dollar, although the Naira failed to fall below N1,300 per Dollar in the parallel market section. Does this not defeat the essence of the intervention?
The tumultuous challenge we all face is the acute liquidity shortage in the retail end market, where volatility is most pervasive.
The BDC sub-sector is the most potent tool in the central bank’s transmission mechanism of their foreign exchange policies.
We have seen the renewed collaborations of the central bank with the BDCs, which have achieved true exchange rate unification and naira appreciation.
The BDCs are the third leg of the market, and the hitherto suspension of their operations in July 2021 marked the beginning of a wild volatility in the market.
Before their suspension in July 2021, the open market rate was trading at N495/$, but with their immediate suspension, the rates continued to move southward against the Naira to the Dollar.
The CBN is working to achieve stability; it is leveraging on the BDCs to achieve stability and meet the invisible demand of the critical retail end of the market for the provision of school fees, medical fees, personal and Business Travelling allowance and has helped to achieve the convergence of both the open market rate and the Nigerian Autonomous Foreign Exchange, NAFEM, rates.
On Friday, both markets were trading at above N1300/$ respectively.
I think enhancing the collaboration will continue to confront speculation, hoarding and illegal currency substitutions.
Are your members part of the currency speculators contributing to the recent rise in the Dollar at the FX market as the EFCC recently arrested 34 persons in Abuja? What is your reaction to the disadvantages of currency speculators, Binance and other Cryptocurrency platforms?
It is a misnomer that most blame is attributed to the BDCs for naira woes.
We frowned at it as a generalisation of stigmatisation to blame only a minute subset of the market that controls less than 10 per cent of the market.
The question of changing the convention is where the significant percentages are, too.
We can not forget so quickly that a large portion of our diaspora remittances is said to be over 90 per cent, leaving us with only 10 per cent coming into the economy.
I also want to underscore the Apex Bank’s new draft of BDCs guidelines that provided a BDCs agency for international money transfer service operators and IMTSOs to attract huge diaspora remittances.
The volatility of a local country’s currency is like runoff water (erosion). If you don’t direct it, it will direct itself.
It is also worth noting that the recent CBN policies and guidelines have helped discourage illegal economic behaviours and put foundations for diversifying the sources of foreign exchange inflows.
On the government’s fiscal side, they are attracting investments in our oil field to increase capacity, efficiency and effectiveness.
The takeoff of the Dangote refinery will also help reduce our heavy dependence on the import of finished crude oil products, thereby increasing our foreign reserves to be hedged against speculators.
On the Monetary side, the Central Bank of Nigeria has introduced varying policies like the use of treasury bills to attract foreign investors, banks opening net positions to discourage holding positions of financial institutions, and willing buyers willing seller quotes for price discovery and transparency.
Also, the non-eligibility policy of using dollar deposits in non-export precedes Dom’s account for naira loan collateral.
Recently, ABCON unveiled plans to harmonise the retail section of the FX market; how would this be achieved, and how will the move tackle Naira depreciation?
In line with our vision to democratise, centralise and digitalize the retail end market, ABCON, as a proactive organisation and a strategic partner in the retail end FX market, has identified the trust we build with our clients and embraced innovation as part of our journey to automate our business process from manual to digital and develop a unified retail end forex market for stakeholders engagements and trading to confront the menace of undocumented and unregistered platforms like Binance, Bybit, etc.
The unified platform helps with price discovery, autonomy, reporting, market intelligence reports, and ease of monitoring and supervision of regulatory and security agencies.
We have inaugurated our state chapter chairmen to support our zonal chairpersons nationwide in repositioning data on market participants in their respective zones.
We also expect to unveil our upgraded SAAZ MASTERS for our members’ efficiency and effectiveness with their extant regulatory obligations.
These unified digital trading platforms will enable price discovery, our member’s visibility, and effective AML/CFT compliance.
How would you access Olayemi Cardoso’s administration as Central Bank of Nigeria governor and his impact on the country’s currency market?
The Olayemi Cardoso-led team at the apex Bank has brought professionalism, stakeholder engagement, and leadership qualities.
For the first time, a draft policy guideline was released before its final implementation in our sub-sector for inputs and observations.
They inherited turbulent waters and worked out of the box to institute fundamental market reforms.
I urge them to always be deliberate, decisive, agile, and act fast.
They are introducing a lot of orientations into the financial sector architecture and wish them well.
What is the short-term and long-term solution to Naira’s stability against the Dollar in the FX market?
In the immediate term, fiscal and monetary authorities should continue to deepen effective linkages and harmonisation and act fast in confronting volatility.
I also recommend amnesty for citizens who want to bring their home holdings into the Dom accounts with less cumbersome documentation requirements.
Also, there is the need for Diaspora remittance bonds to attract the huge, constant and cheap diaspora remittance proceeds.
There should be continued conversation on our oil production capacity through foreign investments to boost capacity and outputs in the medium to long term.
It is also germane to diversify our foreign earnings and incentivize the non-oil exports, which contribute less than 5 per cent to our GDP through risk and standards and efficient port processing systems.
Finally, we should continue to empower our youth through innovations, skills, and job creation to tame the failure of Japa syndrome.
Your last word for Nigerians amid the recent depreciation and soaring inflation?
Let’s all change our mindset as citizens to make the naira sovereign in West Africa.
Let us avoid currency substitution, hoarding, speculation and round-tripping.
It is also necessary to be cautious as the Government and the CBN work to inject liquidity and strengthen the Naira.
Culled from DailyPost
A High Court of the Federal Capital Territory (FCT) in Maitama has issued a public summons against former Kogi Governor, Yahaya Bello, ordering him to appear in court on October 24 to face a 16-count charge of alleged fraud.
The Economic and Financial Crimes Commission (EFCC) filed the charges against Bello and two others, Umar Oricha and Abdulsalami Hudu, alleging criminal breach of trust to the tune of N110.4 billion.
Justice Maryanne Anenih issued the public summons on Thursday after the EFCC applied for it, citing inability to serve Bello with the charges.
Bello’s absence stalled his arraignment, previously scheduled for Thursday.
This development follows previous attempts to summon Bello to court, including a May ruling by Justice Emeka Nwite insisting on his physical appearance and a Court of Appeal order last month.
Nigeria Tribune
A former acting governor of the Central Bank of Nigeria, Folashodun Shonubi, on Wednesday, told Justice Maryann Anenih of the Federal Capital Territory High Court in Maitama Abuja, that intrigues and politics were involved in the naira redesign carried out in 2022.
Shonubi, who was the Deputy Governor of Operations before he was appointed Acting CBN Governor but is now retired, in his response to the question of defence counsel, Olalekan Ojo (SAN), at the continuation of hearing in the trial of a former CBN governor, Godwin Emefiele, told the court that the former apex bank chief told him and others that there were intrigues and politics in the naira redesign.
Emefiele, before Justice Anenih’s court, is facing a four-count charge bordering on disobedience to the direction of law and illegal act causing injury to the public about the naira redesign brought against him by the Economic and Financial Crimes Commission.
Shonubi, led in evidence by prosecuting counsel, Rotimi Oyedepo (SAN), said, “The currency redesign of 2022 was the only one that I was part of. When we had meetings with the defendant (Emefiele), he said there were politics and intrigues around the whole exercise.”
Shonubi’s answer was to the question Ojo asked him if, as a seasoned CBN banker, he was aware of the intrigues and politics in the naira redesign.
Shonubi further explained that he initially wasn’t in the know about the politics and intrigues, but was told by Emefiele, during one of their meetings, that there were indeed intrigues and politics in the exercise.
He however did not further explain what the intrigues and politics were about.
When asked if indeed there was presidential approval for the naira redesign, the witness said the defendant presented a document during one of the meetings of the CBN’s Committee of Governors containing the signature of the president.
He also said what was produced by the CBN under Emefiele, as the redesigned naira notes were not the same as what was approved by the President.
Folashodun Shonubi, former Acting Governor of the Central Bank of Nigeria (CBN), testified before Justice Maryann Anenih at the Federal Capital Territory High Court in Maitama, Abuja, revealing that intrigues and politics played a role in the 2022 naira redesign.
This was disclosed during the trial of former CBN Governor Godwin Emefiele, who is facing a four-count charge filed by the Economic and Financial Crimes Commission (EFCC), including disobedience to law and acts causing public injury.
Shonubi, who served as the Deputy Governor of Operations at the time, stated that Emefiele had informed him and others about the political influences surrounding the currency redesign during one of their meetings.
He admitted that he was initially unaware of the underlying politics but was made aware by Emefiele.
In response to a question about presidential approval for the redesign, Shonubi confirmed that Emefiele had presented a document with the president’s signature during a Committee of Governors meeting.
However, he noted that the naira notes eventually produced were not the same as those initially approved by the President.
He said what the CBN under Emefiele produced after the naira redesign was different from what the former President, Muhammadu Buhari approved.
He also said the redesigned notes were launched by Buhari, and he wasn’t aware of a letter from the president complaining about the naira redesign.
The witness also said he did not come across any letter from either the Committee of Governors or the board of the CBN protesting against or condemning the approval of the president for currency redesign.
When asked if he knew all that transpired between Buhari and Emefiele in the course of the naira redesign, he answered no.
He said it was only Emefiele who was interacting with the president on the issue.
He said he was once invited by the EFCC in connection to the redesign case and that he made statements.
He however said the EFCC did not have a physical confrontation between him and the defendant concerning what was contained in his statements that related to Emefiele.
He said the memo presented to the president for the naira redesign was solely prepared by Emefiele and sent to the president.
He added that the CBN, under Emefiele, did not follow its laid down procedures for the currency redesign.
The witness explained that the normal procedures involved the Currency Management Department of the CBN making recommendations for currency redesign. After this, a paper would be submitted to the Committee of Governors of the bank for consideration.
He added that upon the COG’s approval, the CBN Board would make recommendations to the President. After receiving the President’s approval, the bank would then set up an internal committee to execute the currency redesign exercise.
The witness, who served as a Deputy Governor of the apex bank and was a member of both the COG and CBN Board, stated that Emefiele disregarded the recommendation made in early 2021 by the apex bank’s Currency Department.
He said, “While serving as Deputy Governor, there was a currency redesign in 2022. The CBN did not follow the procedures for redesigning the currency. I was a member of the CBN Board as Deputy Governor. The Chairman of both the COG and board was the Governor. Before 2022, in early 2021, the Currency Department recommended the redesign of the currency notes.
“A paper was presented to me, and on the instruction of the Governor (CBN), it was disregarded. In 2022, we again presented the paper and were asked to hold on.
“In mid-October 2022, the Deputy Governors of the bank were invited to a meeting in the office of the Governor, where he informed us that he had presidential approval for currency redesign.
“He showed us the memo, Mr. President’s signature, and instruction on the last page.”
The court subsequently adjourned till October 9 for further hearing after the witness finished with his testimony.
Nigeria Tribune
Nigeria’s President, Bola Tibubu has written to the National Assembly seeking lawmakers’ consideration for the quick passage of four tax bills.
The president in his letter which was read on the floor of the plenary by the Speaker of the House of Representatives, Tajudeen Abbas, said that the proposed tax bills have been designed in line with the reforms outlined by his administration.
Reading the president’s letter on Thursday, October 3, Abbas listed the four bills as – Nigeria Tax Bill 2024, the tax administration bill, the Nigeria Revenue Service establishment bill, the Joint Revenue Board establishment bill.
According to the letter, the Nigeria Tax Bill 2024 would provide the fiscal work for tax in the country.
For the tax administration bill, it will provide a clear and concise legal framework for all taxes in Nigeria and reduce disputes.
In addition, the Nigeria Revenue Service establishment bill seeks to repeal the Federal Inland Revenue Service Act and in turn establish the Nigeria Revenue Service.
Also, the Joint Revenue Board establishment bill will create a tax tribunal and a tax ombudsman.
According to President Tinubu, these four bills will strengthen Nigeria’s fiscal institutions and align with the objective of the government towards the nation’s development.
Many of Nigeria’s ministers already intensifying lobbies from different political godfathers to save their position with numbers of underperformed executives increasing on the list of President Bola Tinubu.
President Tinubu had played a joker after snubbing the announcement of his new cabinet on the October 1st nationwide broadcast.
A source disclosed exclusively to THEPAPERS that the President shocked many expectancies of the new cabinet list while some ministers are already lobbying to know if their names are included.
ThePAPERS reports that President Tinubu has already penned down some names to replace underperforming ministers in his cabinet.
It has been gathered that the announcement of the cabinet reshuffle could happen any moment from today as President Tinubu had departed the country to block any form of lobby from political allies.
The source further said that his departure to the United Kingdom is strategic in the process of announcing the new cabinet.
Meanwhile, In a recent interactive session on Channels TV, Segun Showunmi, a prominent member of the Peoples Democratic Party (PDP), shared insights from a conversation he had with former Lagos State Governor Babatunde Fashola.
The discussion, which has since gone viral, highlights the complexities involved in cabinet reshuffles.
When asked by the presenter if he would welcome a cabinet dissolution by the President, Showunmi recounted Fashola’s perspective on the matter.
He stated, “One of the fine men in this country who understands administration, Babatunde Raji Fashola, SAN, told me that if you change your cabinet at any point in time, they need about three months to understand the bureaucracy of where they are posted to, and probably another three months to begin to come up with something that can look like a realistic vision they can put on the table.”
Showunmi emphasized Fashola’s experience, noting his roles as Chief of Staff, Minister, and Governor, which lend weight to his observations about the challenges new appointees face in navigating the complexities of government operations.
The Federal Government has introduced new fiscal incentives to boost foreign investments in Nigeria’s oil and gas sector.
The two incentives were unveiled by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun in a statement on Wednesday.
According to the statement by the Finance Ministry, and signed by the Director of Information and Public Relations, Mohammed Manga said the incentives are aimed at revitalising Nigeria’s oil and gas sector.
It also announced that the importation of key energy products and infrastructure, including diesel, feed gas, Liquefied Petroleum Gas, Compressed Natural Gas, electric vehicles, Liquefied Natural Gas infrastructure, and clean cooking equipment would no longer require value-added tax payment.
Manga said the initiative would position Nigeria’s deep offshore basin as a premier destination for global oil and gas investments, bolster energy security, and accelerate Nigeria’s transition to cleaner energy sources.
This policy directive arrives alongside new divestment plans from ExxonMobil and Seplat, which President Bola Tinubu said would receive ministerial approval in the coming days.
The statement read, “In its avowed determination towards ensuring a boost in the nation’s upstream and downstream sector, the Federal Government has introduced groundbreaking concessions aimed at revitalising the industry.
“This is just as the Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, today unveiled two major fiscal incentives aimed at revitalising Nigeria’s oil and gas sector: Value Added Tax Modification Order 2024 and Notice of Tax Incentives for Deep Offshore Oil & Gas Production, in accordance with the Oil & Gas Companies (Tax Incentives, Exemption, Remission, etc.) Order 2024.”
Explaining further, Manga said, “The VAT Modification Order 2024 introduces exemptions on a range of key energy products and infrastructure, including diesel, feed gas, Liquefied Petroleum Gas, Compressed Natural Gas, electric vehicles, Liquefied Natural Gas infrastructure, and clean cooking equipment.
“These measures are designed to lower the cost of living, bolster energy security, and accelerate Nigeria’s transition to cleaner energy sources.”
It explained that the notice of tax incentives for deep offshore oil & gas production provides new tax reliefs for deep offshore projects, stressing that, “This initiative is aimed at positioning Nigeria’s deep offshore basin as a premier destination for global oil and gas investments.”
The ministry said these fiscal incentives reflect the administration’s steadfast commitment to promoting sustainable growth, enhancing energy security, and driving economic prosperity for all Nigerians.
The statement added, “These reforms are part of a broader series of investment-driven policy initiatives championed by President Bola Tinubu, in line with Policy Directives 40-42.
“They reflect the administration’s strong commitment to fostering sustainable growth in the energy sector and enhancing Nigeria’s global competitiveness in oil and gas production.
“With these bold initiatives, Nigeria is firmly on track to reclaim its position as a leader in the global oil and gas market.
“These fiscal incentives demonstrate the administration’s unwavering commitment to fostering sustainable growth, enhancing energy security, and driving economic prosperity for all Nigerians,” the statement concluded.
The Chairman of the Independent Corrupt Practices and Other Related Offences Commission, Adamu Aliyu, has announced that over ₦13 billion in diverted public funds was recovered in September 2024.
Aliyu did not specify the sectors or individuals from whom the funds were recovered but highlighted that the anti-corruption agency has been working relentlessly to fulfil its mandate.
He made this statement during the launch of the commission’s 2024-2028 strategic action plan in Abuja on Tuesday.
Aliyu said, “Over the past year, the ICPC has made significant progress in discharging its mandate; for example, we recovered over ₦13 billion in diverted public funds in September 2024 alone. This is just one of the many ways we have worked tirelessly to fulfil our mandate.”
Aliyu also disclosed that plans are underway to digitalise the commission’s operations.
He added that this would enable more efficient investigations and case management, among other improvements.
“We are also embarking on ICT reforms that will digitalise our operations and enable more efficient investigations, case management, and internal processes. This transformation will position the commission as a leader in leveraging technology to combat corruption, keeping us one step ahead of criminal activities in the digital age,” he stated.
Aliyu further mentioned that a specialised curriculum is being developed to enhance the enforcement capacity of the commission’s personnel, equipping officers with the necessary skills to handle complex corruption cases with professionalism and efficiency.
He noted that the agency is working on decentralising anti-corruption efforts by empowering state governments through their Attorneys General, allowing for more effective corruption prevention at the local level.
“Additionally, we are decentralising the anti-corruption effort by empowering state governments through the mobilisation of State Attorneys General. This approach ensures that state governments are equipped with the tools, knowledge, and resources necessary to effectively combat corruption at the local level,” Aliyu added.
The Attorney General of the Federation and Minister of Justice, Lateef Fagbemi, reiterated that President Bola Tinubu’s administration prioritises the fight against corruption.
He said, “The fight against corruption remains a cornerstone of this administration’s agenda, as we recognise that corruption is a cancer that eats away at the very fabric of our society. It undermines trust, weakens institutions, and hampers our progress as a nation.
“In this light, the work of the ICPC is of paramount importance, not only in ensuring that corrupt practices are identified and prosecuted but also in fostering a culture of integrity and accountability across all sectors.”
The President of the Court of Appeal, Justice Monica Dongban-Mensem, pledged the court’s support for the implementation of the ICPC’s action plan.
“Implementation and collaboration are vital. Corruption is not just about stealing money; it is failing to do what you ought to do. We are a great country. We will do what we can to support the ICPC in implementing the action plan,” she said.
How we secured Goldberg larger sponsorship for Lekki Astro League -Momodu
NCC commences pre-enforcement action on Starlink over price hike
Birthday Tribute to Dr. Oladele Alake: A Leader, Mentor and Visionary
Lekki Astro League Seeks Sponsorship As Season Kicks Off
Nigeria agrees to 1.5mbpd production quota set by OPEC
Hoodlums kill two Police operatives in Anambra
FRSC adopts town hall meetings to curb road crashes
“Brave and blessed woman”- Timi Dakolo celebrates his wife Busola as she turns 40 years old
Rapper Kanye West sued by former Security Guard who claims he wasn’t paid for his services
