CBN addresses foreign exchange market pressures

CBN Mulls New Recapitalisation For Banks

By Doris Isreal Ijeoma The Central Bank of Nigeria (CBN) has announced recent fluctuations in the foreign exchange market are largely driven by corporate demand and seasonal summer uptick.  This was disclosed in a statement by CBN on Friday, July 19. The statement reads:”The Central Bank of Nigeria (CBN) wishes to inform the general public that recent movements in the foreign exchange market are driven largely by demand pressure from corporate entities and the expected seasonal uptick during the summer period. “The CBN, therefore, wishes to assure the general public that it has commenced a regular sale of foreign exchange through Authorized Dealer Banks and licensed Bureaux De Change (BDCs) to improve supply in the foreign exchange market in line with its price stability mandate and its commitment to ensure a well-functioning and liquid market. “Over the next few weeks, the CBN will continue to support various segments of the official markets with liquidity. In line with the above, the CBN on Thursday, July 18 and Friday, July 19, 2024, sold a total sum of US$106,500,000.00 (One Hundred and Six Million and Five Hundred Thousand US Dollars Only) to 29 (Twenty-Nine) Authorized Dealer banks between an exchange rate range of N1,498.00/US$1 to N1,530.00/US$1. In addition, it bought US$9,500,000 (Nine Million and Five Hundred Thousand Dollars) from 4 (Four) Authorized Dealer banks at rates between N1,510.00/US$1 and N1,550.00/US$1. The value date for all the transactions is July 19, 2024. “Additionally, the CBN will continue closely monitoring compliance with existing trading rules and regulations by authorized dealer banks to promote ethical conduct and support the drive to achieve stability in the foreign exchange market. Therefore, the general public is advised to direct their foreign exchange demand to their banks and BDC operators in accordance with prevailing market regulations.”

NNPCL, CBN, and Others Assure Nigerians of Imminent Economic Recovery …Nigeria to Become Net Exporter of Petroleum by December

Senate Probes 'One Chance' Victim's Tragic Death, Maitama Hospital Negligence

Critical stakeholders in Nigeria’s economy, including the Nigerian National Petroleum Company Limited (NNPCL) and the Central Bank of Nigeria (CBN), have assured citizens that the nation’s ailing economy is on the path to recovery. This assurance was given during an interactive session held on Monday with joint committees of the National Assembly on Finance. The session, attended by key figures such as the Ministers of Finance, Mr. Wale Edun, Budget and National Planning, Senator Atiku Bagudu, Minister of State Petroleum, Senator Heineken Lokpobiri, NNPCL’s Group Executive Officer, Mela Kyari, and CBN Governor, Mr. Yemi Cardoso, focused on strategies to revitalize the economy. In his presentation, Mela Kyari, Group Executive Officer of NNPCL, informed the committee that Nigeria is set to become a net exporter of petroleum by December. He cited the upcoming commencement of production at the Port Harcourt refinery in early August, followed by the Warri refinery, and the Kaduna refinery by December. Kyari also revealed that Nigeria’s oil production is expected to reach 2 million barrels per day soon, as all necessary measures have been implemented. “Mr. Chairman and members of the Joint Committee, the NNPCL and the oil and gas industry are pivotal in transforming our economic situation. We have seen growth in our oil and gas production due to actions taken by the President and our commitment to enhancing production activities,” Kyari stated. Kyari also highlighted the potential contributions of the Dangote refinery and other smaller producers, expressing confidence that Nigeria will be a net exporter of petroleum products by the end of the year. The CBN Governor Yemi Cardoso, represented by Deputy Governor for Economic Policy Muhammad Sani Abdullahi, addressed the challenges of rising inflation, foreign exchange rate fluctuations, and food inflation. He indicated that these issues are expected to improve soon, based on emerging economic indicators. Also, the Minister of Budget and National Planning, Atiku Bagudu, mentioned that the 2024 budget is already in implementation. He also noted ongoing negotiations with labor leaders on the minimum wage to prevent further economic disruptions. In his response, Senator Sani Musa, Chairman of the Committee, appealed to Nigerians to remain patient as the government works tirelessly to stabilize the economy. “Our interactive session with you, the managers of the economy, is about fostering economic growth and ensuring that our policies benefit Nigerians. The National Assembly is committed to addressing the economic challenges and supporting the President’s efforts to bring stability,” Senator Musa remarked. The Lawmaker also acknowledged the difficulties faced by the economy in recent years and emphasized the need for gradual improvements, urging Nigerians to persevere and support the current administration. “The indicators show that the economy is on the mend. Although inflation remains a challenge, progress is being made, and with time, the situation will improve,” he concluded.

Labour insists N250,000 as minimum wage

The Nigeria Labour Congress (NLC) has unequivocally maintained its stance on the proposed ₦250,000 minimum wage, resisting the Federal Government’s offer of ₦62,000. The declaration was made by NLC President, Joe Ajaero, at an award ceremony in Kano, highlighting the union’s commitment to advocating for the interests of Nigerian workers. Despite several meetings aimed at resolving the wage dispute, no agreement has been reached, with both the government and the NLC holding their grounds. The impasse continues even after the expiration of the existing minimum wage in April 2024, which has heightened tensions between the parties involved. During his speech, delivered by NLC General Secretary Emmanuel Ugboaja, Ajaero voiced concerns over the current economic challenges and escalating inflation rates, which he argued have severely impacted the living standards of workers. “The economic reality and worsening inflation could no longer sustain Nigerian workers,” Ajaero stated, emphasizing the urgent need for a wage that ensures a dignified life for all labourers.

Senate Intensifies Probe into N30 Trillion Ways and Means; Extends Committee’s Assignment by Two Months

The Senate has ramped up its investigation into the N30 trillion Ways and Means facilities granted to the Federal Government by the Central Bank of Nigeria (CBN) between 2014 and 2023. Last Thursday, the Senate extended the assignment of the Ad-hoc committee handling the probe by an additional two months. Senator Isah Jibrin (APC Kogi East), who chairs the Ad-hoc committee established in March, requested more time, citing delays in receiving crucial information from several relevant agencies involved in the utilization of these funds. During a telephone conversation with journalists in Abuja on Saturday, Senator Jibrin, who also chairs the Senate Committee on Customs and Excise Duties, explained that the extension would enable the committee to intensify its efforts. “Most of the relevant agencies have been contacted, and their documents are being meticulously scrutinized regarding the spending of the disbursements obtained through the Ways and Means facilities,” Senator Jibrin stated. “As this is a highly sensitive national task, the committee is committed to conducting a thorough investigation without rushing to conclusions.” Jibrin emphasized that increased pressure would be applied to the few agencies that have not adequately responded to information requests. He warned that heads of non-compliant agencies might be summoned if they fail to provide the necessary information. “The extended timeframe will ensure that the committee produces a comprehensive investigative report by September this year, detailing how the N30 trillion Ways and Means were disbursed, for what purposes, and how the funds were expended,” he added. The Ways and Means facility is a loan mechanism through which the CBN finances the federal government’s budget shortfalls. This method often leads to macroeconomic instability, causing inflation and high exchange rates due to the excess liquidity injected into the economy. Although CBN law limits advances under Ways and Means to 5 percent of the previous year’s revenue, this limit has frequently been exceeded. In February this year, CBN Governor Olayemi Cardoso announced that the bank would cease granting Ways and Means advances to the government until all outstanding debts are repaid.

76 Countries Including Nigeria Sign Controversial Samoa Agreement (Full List)

The Samoa agreement focuses on economic development, security, environment, migration, mobility, and climate change other areas include investment opportunities, sustainable development, and mutually beneficial cooperation, among others. The Samoa agreement has been signed by 79 countries across the world to address various aspects of the economy. The objective of the Samoa agreement is to serve as the legal framework for EU relations with these 79 countries. These include 48 African, 16 Caribbean, and 15 Pacific countries. The agreement covers 2 billion people and aims to strengthen the capacity of the EU and the ACP (African, Caribbean, and Pacific countries) to address global challenges together. Here are the full list of countries to benefit from the Samoa Agreement: African Countries: 1. Algeria 2. Angola 3. Benin 4. Botswana 5. Burkina Faso 6. Burundi 7. Cameroon 8. Cape Verde 9. Central African Republic 10. Chad 11. Comoros 12. Congo 13. Côte d’Ivoire 14.Democratic Republic of the Congo 15. Djibouti 16. Egypt 17. Equatorial Guinea 18. Eritrea 19. Eswatini 20. Ethiopia 21. Gabon 22. Gambia 23. Ghana 24. Guinea 25. Guinea-Bissau 26. Kenya 27. Lesotho 28. Liberia 29. Libya 30. Madagascar 31. Malawi 32. Mali 33. Mauritania 34. Mauritius 35. Morocco 36. Mozambique 37. Namibia 38. Niger 39. Nigeria 40. Republic of the Congo 41. Rwanda 42.São Tomé and Principe 43. Senegal 44. Seychelles 45. Sierra Leone 46. Somalia 47. South Africa 48. South Sudan 49. Sudan 50. Tanzania 51.Togo 52. Tunisia 53. Uganda 54. Zambia 55. Zimbabwe Caribbean Countries:   1. Antigua and Barbuda 2. The Bahamas 3. Barbados 4. Belize 5. Dominica 6. Dominican Republic 7. Grenada 8. Guyana 9. Haiti 10. Jamaica 11. Saint Kitts and Nevis 12. Saint Lucia 13. Saint Vincent and the Grenadines 14. Suriname 15. Trinidad and Tobago Pacific Countries: 1. Cook Islands 2. Fiji 3. Kiribati 4. Marshall Islands 5. Micronesia 6. Nauru 7. Niue 8. Palau 9. Papua New Guinea 10. Samoa 11. Solomon Islands 12. Tonga 13. Tuvalu 14. Vanuatu

Tapswap Makes Fresh Announcement On Token Allocation

In what could be perceived as bad news and disappointment for some people, TON Blockchain announced that the distribution of Tapswap tokens to users would be delayed until the third quarter of the year. Tapswap, since its launch on February 15, 2024, has gained popularity among Nigerians who tap the icon in the centre of the Telegram Tapswap bot screen to mine coins. The Tapswap app has already attracted over 50 million users from across countries. However, amid anticipation, the Tapswap management yesterday decided to postpone the token exchange event, originally scheduled for July 1st, to better serve its players. In a series of threads created on X on Monday, the management shared what it described as both ‘bad and good news’ for its players. They mentioned that they are in active discussions with tier 1 exchanges around the world to ensure the game is priced appropriately and protected from scammers and leaders in the web3 industry who are attracted by its success. The announcement reads: “We’ve got some bad and really good news for you at the same time: our team has decided to move the date for the Shares-to-Token exchange event. You might wonder, what’s good about that? Just FUD? “Not exactly. The whole point is that you’ll benefit from this. Let us explain how: “Recently, there’s been a lot of buzz around Tapswap, especially about listing on tier 1 exchanges, a massive drop, and more. And it’s no surprise: the project has become one of the major players globally, ranking at the top. This kind of attention attracts not just scammers but also leaders in the web3 industry. “So, not all rumours are just rumours. The Tapswap team is actually in active talks with tier-1 exchanges! And they are thrilled with you – our community! Isn’t this what we’ve been tirelessly working towards together?” The management also emphasized its commitment to giving a significant amount of focus to the task, which entails a more thorough analysis of tokenomics and the appropriate launch strategy. It added: “However, this success comes with some ‘inconveniences’. This level of attention requires much more detailed work on tokenomics and the right launch strategy. And that means extra time. “But know that this is all to ensure that our launch in Q3 is fair and, more importantly, profitable for all of you who stand by us no matter what,” it added. “Tapswap, however, charged its players to be happy about the bigger news in the future while appreciating the support and feedback gotten from them. “So, as you can see, there are plenty of reasons to be happy about this change. And very soon, we’ll give you some even bigger news about our future, tier 1 partnerships, and the drop itself! “We really value your support. And we truly listen to your feedback, so don’t forget to share it in the comments. Together, we’ll keep reaching higher and higher levels”.

‘Why Heritage Bank Customers Are Yet To Get Their Funds Back After Bank License Revocation’

The Nigeria Deposit Insurance Corporation (NDIC) says account name discrepancies in Bank Verification Numbers (BVN) linked to the alternate accounts of some defunct Heritage Bank customers are delaying the payment of their insured deposits. Mr Bello Hassan, the Managing Director of NDIC told the News Agency of Nigeria (NAN) on Sunday in Abuja. Hassan said the corporation had paid a substantial amount to depositors of the defunct bank without BVN account-linked issues. He called on depositors of the bank who were yet to receive their insured deposit credit alert to visit the NDIC’s website and complete their verification forms for their payment. The managing director said the verification would also include depositors without BVN alternate account. ”We have already commenced the payment of customers since June 6. ”We have paid a substantial amount to the customers. ”What we leverage in making the payment is the BVN of customers. We trace alternate accounts in other banks and pay them their insured amounts. ”There are some that we have challenges linking up because of some discrepancies between the names and others. ”We are calling on customers that have not received their alerts in their alternate accounts to come forward and complete their verification forms so that we can pay them,” he said. On payment of depositors with more than five million naira with the bank, Hassan said they would be paid liquidation dividends. According to him, NDIC has already commenced the process of disposing of the physical buildings and also set the process in motion to make sure that we recover the loans and advances that were granted to the bank. ”That is what we use in paying those liquidation dividends. ”We are not going to wait until we recover everything, no. ”As we recover, we will also advertise to say that we will pay liquidation dividends so that concerned depositors will be on the lookout for alerts in their accounts,” Hassan said. NAN reports that the Central Bank of Nigeria (CBN) on June 3 revoked the banking licence of Heritage Bank Plc. CBN said the decision was made due to the bank’s failure to improve its financial performance, posing a threat to financial stability

Hardship: Why Nigerian govt needs to reopen borders – FCCPC

The Federal Competition and Consumer Protection Commission (FCCPC) has appealed to the Federal Government to reopen the country’s borders to allow for legitimate importation of food items to combat hunger among Nigerians. The commission said that reopening borders would facilitate food importation, while stabilizing market prices. It made the call during an advocacy meeting with traditional rulers and other stakeholders held at the Emir’s palace in Bauchi. Acting Executive Chairman of the Commission, Adamu Abdullahi, highlighted the FCCPC’s ongoing efforts in advocacy and public awareness regarding price gouging and other unfair trade practices in Nigerian markets. Abdullahi explained that the Commission’s visit aimed to sensitize stakeholders on their rights and help them identify counterfeit products and proper channels for lodging complaints. “As mediators, we ensure that substandard products are repaired, replaced, or refunded to the consumer if they are unsatisfied with their purchase,” Abdullahi stated. He expressed concern about escalating commodity prices due to the recent appreciation of the naira against the dollar, calling the situation unacceptable. “The FCCPC remains dedicated to promoting fair competition, protecting consumers, and fostering a regulated marketplace. We encourage citizens to be vigilant and actively report any violations,” he added. Responding, the Emir of Bauchi, Rilwanu Sulaiman Adamu, expressed concern over the rising prices in markets, particularly for food items, which he noted are causing hardship for citizens. Represented by the District Head of Lame, Alhaji Yakubu Aliyu Lame, the Emir urged the Federal Government to take urgent action to reduce food prices, stressing the suffering of ordinary Nigerians. Rilwanu Sulaiman Adamu assured that the traditional institution in the state is ready to help raise public awareness about the commission’s activities to ensure the message reaches the targeted audience.

Senate passes bill for Act to amend the 2023 supplementary appropriation bill till 31st December

Questions For Akpabio’s Senate Over Confirmation Of ministerial nominees

The Senate has passed has passed a bill for an Act to amend the implementation of the 2023 supplementary appropriation bill till 31st December, 2024. The implementation of the 2023 supplementary by implication would run in paripasu with that of the 2024 which stands at N28.78 trillion. The passage followed the emergency plenary convened which was presided by the President of the Senate, Senator Godswill Akpabio. After clause by clause consideration of the bill and after the Committee of Supply, the bill was then read the third time and passed. The 2023 supplementary budget bill was sponsored by the Senate Leader, Senator Opeyemi Bamidele, APC, Ekiti Central for its implementation to be extended. In his remark, the President of the Senate, Godswill Akpabio who thanked Senators for their understanding and patriotism, expressed his belief that the implementation would allow the executive to complete all abandoned projects.