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  • Vice-President Kashim Shettima Chairs NEC Meeting at State House

    Vice-President Kashim Shettima Chairs NEC Meeting at State House

    Today, Vice-President Kashim Shettima presided over the monthly National Economic Council (NEC) meeting at the Council Chambers of the State House in Abuja. The meeting marks the second gathering of the constitutional economic advisory body since President Bola Tinubu’s administration was inaugurated on May 29, 2023.

    NEC comprises the 36 governors of the federation, ministers in charge of finance, the Governor of the Central Bank of Nigeria (CBN), and the Group Chief Executive Officer of Nigeria National Petroleum Company Limited (NNPCL), Mele Kyari, among other key stakeholders.

    Early attendees of the meeting, scheduled to commence at 11 am, include Governor Ademola Adeleke of Osun State, Governor Abdullahi Sule of Nasarawa State, and Deputy Governor of Enugu State, Mr. Ifeanyi Ossai.

    The gathering also saw the presence of several other state governors, such as Inuwa Yahya of Gombe State, Dauda Lawan of Zamfara State, Dikko Radda of Katsina State, AbdulRahman AbdulRazaq of Kwara State, Dr. Alex Otti of Abia State, Babajide Sanwo-Olu of Lagos State, Senator Bala Mohammed of Bauchi State, Senator Uba Sani of Kaduna State, Sheriff Obrevwori of Delta State, and Nasir Idris of Kebbi State, among others.

    Notably, Governors Prof. Charles Soludo of Anambra State, Godwin Obaseki of Edo State, Umaru Namadi of Jigawa State, Mai Mala Bunu of Yobe State, Duoye Diri of Bayelsa State, Umo Eno of Akwa Ibom State, Prince Bassey Otu of Cross River State, Dapo Abiodun of Ogun State, Ahmad Aliu of Sokoto State, Caleb Mutfwang of Plateau State, Rev. Fr. Hyacinth Alia of Benue State, Senator Hope Uzodimma of Imo State, Acting Governor Lucky Aiyedatiwa of Ondo State, and Deputy Governor David Onoja of Kogi State were also in attendance.

    The NEC meeting serves as a crucial platform for economic discussions and decision-making, reflecting the commitment of the Nigerian government to address and strategize on various economic challenges and opportunities.

  • Naira Hits Record Low of N820/$ as Forex Supply Gap Persists

    Naira Hits Record Low of N820/$ as Forex Supply Gap Persists

    Naira Hits New Low at N820/$ as Forex Supply Gap Persists

    The Nigerian naira has reached a new low against the US dollar, trading at N803.9/$ in the Investors & Exporters (I&E) window and N822/$ in the parallel market. The sustained supply gap in Nigeria’s forex market has contributed to this depreciation.

    According to reports, there was a 6.6% decline in the volume of dollars traded in the I&E window, disappointing dealers who were expecting an increase in supply. In the parallel market, there was a week-on-week depreciation of 5.5% to N822/$, compared to the previous week’s closing rate of N779/$.

    Since the introduction of reforms by the Central Bank of Nigeria (CBN) on June 14, 2023, the exchange rate has remained volatile, with fluctuations leading up to the record low witnessed recently. The reforms aimed to eliminate multiple exchange rates and reintroduce the ‘Willing Buyer Willing Seller’ market model in the I&E window.

    Despite these measures, the naira has experienced a cumulative depreciation of 70% (N321.23) in the I&E window and 7.0% (N58) in the parallel market. The closing rates from last week also indicate a widening of the parallel market margin, which had initially narrowed following the policy changes.

    Forex market operators have expressed concerns that the expected increase in supply has not materialized, attributing the renewed depreciation of the naira to rising demand and hoarding. The scarcity of dollars in banks and limited access to foreign currency by Bureau De Changes have further exacerbated the situation.

    Market operator Mr. Ahmed Danjuma noted the difficulty in obtaining dollars due to its scarcity and the high demand. He likened the demand for dollars to food being brought into a prison, emphasizing the low supply and limited access to foreign currency even for Bureau De Changes.

  • Private sector and economists support CBN as naira falls to 664/$ with currency floating.

    Private sector and economists support CBN as naira falls to 664/$ with currency floating.

    The Central Bank of Nigeria has instructed Deposit Money Banks to eliminate the rate cap on the naira in the official Investors and Exporters’ Window of the foreign exchange market. This decision allows for a free float of the national currency against the dollar and other global currencies. The move comes shortly after President Bola Tinubu pledged to unify the nation’s multiple exchange rates and just before the suspension and detention of CBN Governor Godwin Emefiele, whose unconventional monetary policies were seen as hindrances to investors and the economy.

    The decision by the CBN to float the currency has been praised by the organized private sector and economists who believe it will unify the country’s multiple exchange rates and bring stability to the foreign exchange market. Under the new system, buyers and sellers of foreign currency in the official FX markets are free to quote rates they find suitable, instead of rates being determined by the Central Bank of Nigeria.

    Following the announcement, the naira depreciated to N664.04/dollar at the close of trading at the Investors and Exporters’ Window. This represents a 40.97% decline in the naira’s value compared to the previous rate of 471/dollar. The Central Bank of Nigeria has not yet updated the I&E Window rate on its website.

    The CBN has informed banks that the rate cap has been removed at the I&E Window, allowing banks and customers to trade freely at any rate within a N1 spread between the buying and selling rates. The CBN also announced several other changes to the foreign exchange market, including the collapse of all foreign exchange segments into the I&E Window and the re-introduction of the “Willing Buyer, Willing Seller” model.

    The decision to float the naira has had an impact on the parallel market, where the naira closed at 757/dollar. Currency dealers in Lagos, Abuja, and Lagos airport reported that the naira was being bought and sold at 757 and 750, respectively. The Nigerian stock market responded positively to the news, with the All-Share Index trading 3.99% higher and the market capitalization appreciating by N992bn.

    Economists and industry experts have shared their opinions on the decision to float the naira. Some believe it will attract more international investors and boost the country’s economy, while others caution against unifying the exchange rates completely and suggest having separate rates for commercial and educational purposes. The decision is expected to bring clarity and transparency to the foreign exchange market but may also have implications on government debt, budget deficit, and revenue.

    Overall, the move to float the naira is seen as a significant step toward unifying the country’s exchange rates and bringing stability to the foreign exchange market. The decision has both positive and negative implications, and its full impact will be observed in the coming months.

  • Nigerian lawyer sues CBN over Arabic inscriptions on currency

    Nigerian lawyer sues CBN over Arabic inscriptions on currency

    A court in Nigeria’s commercial city of Lagos is due to hear a case filed by a lawyer against the Central Bank of Nigeria to demand the removal of Arabic inscriptions in the local currency.

    Malcolm Omirhobo also wants the Nigerian army to remove the inscription from its military logo saying it portrays Nigeria as an Islamic state, contrary to the country’s constitutional status of a secular state.

    READ ALSO: Another protest looms if unemployment persists – Senate president warns FG

    The lawyer wants the Arabic inscriptions replaced with either English or any of Nigeria’s three main local languages – Hausa, Yoruba, or Igbo.

    However, the central bank denied the inscriptions were a symbol or mark of Islam. Many in the country, especially in the north, speak Arabic. English though is the nation’s main language.

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